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

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The Woodie’s business continued to normalise following 'exceptional' demand over the pandemic

The Woodie’s business continued to normalise following 'exceptional' demand over the pandemic

The Woodie’s business continued to normalise following 'exceptional' demand over the pandemic

Woodie's and Chadwicks owner Grafton Group has commenced a £100m (€113.6m) share buyback programme, following shareholder approval last April.

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

In an update, the materials distributor said that it has entered into arrangements with Goodbody Stockbrokers and Numis Securities to conduct the buyback programme.

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

Shares will be repurchased on the London Stock Exchange and then cancelled.

The group also reported that average daily like-for-like revenues were “slightly stronger” in the three months to October 31 compared with the same period last year.

Group revenue increased by 9.5pc to £1.93bn in the 10 months to October 31 from £1.76bn last year.

This was also up 39.2pc from the same period in 2019.

Over half of the revenue was driven from sales in Ireland, the Netherlands and Poland.

The Irish and Dutch distribution businesses saw ongoing demand and inflation, with the group pointing to “softer” trading conditions in the UK distribution business as consumers cut costs.

Chadwicks saw housing building demand hold up well in Ireland despite soaring construction costs.

The group also pointed to a lack of skilled labour which was limiting growth in Ireland.

The Woodie’s business continued to normalise following “exceptional” demand over the pandemic.

The group said it remained on track to deliver full-year operating profit of around £266m.

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Newly appointed chief executive Eric Born will step into the role on November 28, succeeding Gavin Slark.

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

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


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