Yahoo Finance Mike Ashley’s Frasers Group begins £80m share buyback scheme
Mike Ashley’s Frasers Group, which owns the likes of House of Fraser and Sports Direct, has launched a new share buyback programme of up to £80m.
The retail giant, which also owns brands such as Jack Willis and Flannels, has entered into a non-discretionary arrangement with Barclays Bank, acting through its investment bank, for the new programme.
It will take place from today to the day Frasers Group reports final results for the year ended 28 April, 2024, which is scheduled for July.
Frasers Group added that a maximum of 10 million shares could be purchased with the total share back programme to be no greater than £80m. The group’s shares closed at 856 pence yesterday afternoon.
Who it first announce the share buyback programme in April, the group said: “The aggregate purchase price of all shares acquired under the programme will be no greater than £80m.
“The maximum number of shares that may be purchased under the programme will be 10 million ordinary shares.
“The purpose of the programme is to reduce the share capital of the company. The shares repurchased by the company will be held in treasury pending cancellation or re-issue.”
The retail giant reported a 4.4 per cent increase in operating profits year on year to £298.1m for the six months to 29 October 2023. Group revenues for the year also increased by 4.4 per cent to £2.76bn.
Frasers Group’s UK sports retail business unit, which includes sportswear retailer Sports Direct, accounted for more than half of the group’s full-year revenues, at £1.5bn, up by 0.8 per cent year on year.
Back in February, the sporting giant announced a similar scheme which ran for 11 weeks and ended on Sunday, 28 April.
