Frasers Group has initiated a significant share buyback programme.
- The initiative involves a non-discretionary agreement with Barclays.
- The buyback is capped at £80 million, targeting up to 10 million shares.
- The programme occurs in the company’s closed period until July 2024.
- The move follows a year of positive financial growth for Frasers Group.
Frasers Group has announced a new initiative to repurchase its shares, marking a strategic financial move. The company has entered into a non-discretionary arrangement with Barclays Bank to facilitate this programme. This initiative is particularly noteworthy as it reflects the company’s confidence in its financial position and future prospects.
The buyback programme is designed to purchase a maximum of 10 million shares, with the total investment not exceeding £80 million. This move is indicative of Frasers Group’s commitment to optimising its capital structure by reducing the number of shares in circulation, potentially enhancing shareholder value.
Scheduled to occur during the company’s closed period, this repurchase will span from now until the release of the company’s final results for the financial year ending 28 April 2024, which are anticipated in July.
Frasers Group’s recent financial performance underscores this strategic move. The company reported a 4.4% increase in operating profits to £298.1 million for the six months ending 29 October 2023. The group’s revenue also saw a rise, reaching £2.76 billion, marking another 4.4% increase. Such financial strength likely supports their decision to initiate the buyback.
Further supporting the strong position of Frasers Group is the performance of its UK sports retail division, including Sports Direct, which contributed significantly to overall revenues, totalling £1.5 billion. Additionally, the premium lifestyle segment, including Flannels, reported a 3.1% increase in sales to £550.1 million, alongside a notable 13.2% rise in international retail sales, amounting to £645.8 million.
The share buyback programme by Frasers Group exemplifies its robust financial health and strategic forward planning.
