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

Woodie’s and Chadwicks owner Grafton Group has launched a £100million share buyback program following shareholder approval last month.

The London-listed builders’ merchant said on Monday it had reached agreements with Goodbody Stockbrokers and Numis Securities to buy back up to 10 percent – or 23,970,000 – of the company’s common shares.

The buyback began on Monday and will end no later than December 31, subject to market conditions.

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

Grafton shareholders approved the move at an annual general meeting on April 28 after the company reported a 7.2 percent increase in sales this year, buoyed by an Irish construction boom.

Chadwicks saw an average daily increase in earnings of 37.5 per cent on a like-for-like basis as Irish homeowners spent more on repairs, maintenance and refurbishments and private and public sector housing construction continued.

Following exceptional growth in 2020, there has also been “further normalization of revenue” at its Woodie’s DIY, home and garden business in Ireland, the company said last month.

Woodie’s stayed open during the pandemic as it was seen as a key retailer.

The group’s total revenue increased by 15% to £645.3m in the period to 17 April compared to the same period in 2021 (£561.1m).

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