Woodie’s owner Grafton Group launches £100m share buyback

Grafton Group, owners of Woodie’s and Chadwicks, launched a £100m share buyback program following shareholder approval last April.

The group also completed a £100m share buyback program between May 9th and September 12th this year.

In an update, the materials distributor said it has reached agreements with Goodbody Stockbrokers and Numis Securities to run the buyback program.

The buyback began today and will end no later than April 30 next year, subject to market conditions.

The shares are bought back on the London Stock Exchange and then cancelled.

The group also reported that average daily like-for-like earnings for the three months ended Oct. 31 were “slightly stronger” compared to the same period last year.

Group sales rose 9.5% to £1.93 billion in the ten months to 31 October from £1.76 billion a year earlier.

This was also a 39.2 percent increase from the same period in 2019.

More than half of the turnover comes from sales in Ireland, the Netherlands and Poland.

Irish and Dutch distributors saw continued demand and inflation, with the group citing “softer” trading conditions in the UK distribution business as consumers cut costs.

Chadwicks saw housing demand in Ireland holding up well despite rising construction costs.

The group also pointed to a skills shortage that is limiting growth in Ireland.

The Woodie’s business continued to normalize following “extraordinary” demand during the pandemic.

The group said it remained on track to post an operating profit of around £266m for the full year.

Newly appointed CEO Erin Born will also assume this role on November 28, succeeding Gavin Slark.

Referring to the latest trading update, Mr Slark said: “Grafton delivered a solid performance over the period, demonstrating the benefit of its balanced distribution of operations across geographic markets and sectors. Notwithstanding the macroeconomic challenges, particularly in the UK, the group is confident that it will deliver on its expectations for the year.”

Grafton trades in around 350 branches and employs around 8,700 people.

https://www.independent.ie/business/irish/woodies-owner-grafton-group-launches-100m-share-buyback-42133174.html Woodie’s owner Grafton Group launches £100m share buyback

Fry Electronics Team

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