Thomas Lyons Grafton Group, the parent company of Woodies and Chadwicks, has concluded its £93m (€106m) share buyback programme. The company, which deals in DIY and builder materials, has returned £193m to its shareholders after completing two buyback programmes between May 2022 and April. Grafton Group has repurchased 10.89m ordinary shares on the London Stock Exchange between November and April at an average price of £8.57 per share. This represents 4.8% of the company’s issued share capital when the programme commenced last year.
The company’s annual results, published last month, revealed that Grafton Group generated €2.59bn in revenues, representing a 9% increase from the previous year. The company also recorded a pre-tax profit increase of 0.8%, rising to €283.4m. However, the group’s operating profit dropped 2% from €303m to €297.5m.
The share buyback programme was initiated by the company in May 2022, with the aim of returning surplus cash to shareholders. Grafton Group has stated that it will continue to evaluate opportunities to return cash to shareholders in the future.
Grafton Group’s CEO, Gavin Slark, commented on the completion of the share buyback programme, saying, “We are pleased to have completed the share buyback programme, which is in line with our commitment to return surplus cash to shareholders. The strength of our balance sheet and cash generation capabilities provide us with the flexibility to continue investing in the business while returning cash to shareholders.”
Grafton Group is a leading distributor of building materials and DIY supplies, operating in the UK, Ireland, and the Netherlands. The company has a portfolio of brands, including Woodies, Chadwicks, and Selco. With over 670 branches and more than 12,000 employees, Grafton Group is a significant player in the construction industry.
The completion of the share buyback programme is expected to have a positive impact on Grafton Group’s share price, as it demonstrates the company’s commitment to returning cash to shareholders. The company’s shares have performed well over the past year, rising by approximately 20%.
The construction industry has been impacted by the Covid-19 pandemic, with supply chain disruptions and labour shortages affecting the sector. However, the industry has shown resilience, with many companies reporting strong financial results in recent months. Grafton Group’s performance in 2021 reflects the strength of the company’s business model and its ability to navigate challenging market conditions.
In conclusion, Grafton Group has completed a £93m (€106m) share buyback programme, returning £193m to its shareholders. The company’s annual results show a 9% increase in revenues and a pre-tax profit increase of 0.8%. The completion of the share buyback programme is expected to have a positive impact on the company’s share price, demonstrating its commitment to returning cash to shareholders. Grafton Group’s performance in 2021 reflects the strength of the company’s business model and its ability to navigate challenging market conditions.
