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HomeStocks NewsGrafton Group extends buyback program and doubles fund to £100 million

Grafton Group extends buyback program and doubles fund to £100 million

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.

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