5.1 C
New York
Friday, February 23, 2024

Grafton Group extends buyback program and doubles fund to £100 million By Investing.com

Must read

Rate this post

© Reuters.

Grafton Group, the building materials supplier listed on the , announced today that it has expanded its share buyback initiative, doubling the available funds to £100 million (GBP1 = USD1.2580) and extending the program’s duration until May 31, 2024. The decision to increase the buyback fund comes as part of the company’s capital allocation strategy and follows a period of underwhelming first-half profits and market challenges.

This expansion allows Grafton Group to repurchase up to approximately 15.7 million shares, under the same terms that were initially set forth in late August. The announcement had an immediate impact on the market, with Grafton’s share price climbing nearly 3% in early trading hours today.

The increase in the buyback fund is a significant shift from the initial cap set for repurchasing over fifteen million shares. The adjustment reflects Grafton’s proactive approach to managing its capital amid recent broker downgrades and a slowdown in housing construction. Notably, Peel Hunt recently adjusted their price target for Grafton shares from 1,050p to just below at 970p.

In September, Grafton faced a shareholder rebellion due to concerns over environmental and diversity policies within the company. This led to a substantial number of votes against re-electing Michael Roney as non-executive chairman. The company’s response to these concerns will be closely monitored by stakeholders as it continues to navigate through market headwinds.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

- Advertisement -spot_img

More articles


Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article