Frasers Group has announced that it intends to launch a new share buyback scheme for a purchase price “no greater” than £70m.
The buyback programme is set to begin today (13 December) and end “up to and including” the last trading day prior to its financial year end on 24 April 2022.
The group said the maximum number of shares that can be bought under the programme will be 10,000,000, adding that the purpose of the scheme is to reduce the group’s share capital.
It comes as the group reported seeing its pre-tax profit rocket 75% to £186m in its half-year results just last week, largely driven by a strong reopening performance of stores post-lockdown and a continued growth in its online business.
The group also cited ongoing operating efficiencies and the FY21 comparative period being hit by lockdowns as reasons behind the latest results.
In addition to strong profits, it noted that revenue rose by 24% to £2.3bn over the period ended 24 October 2021.
Looking ahead, the group said it remains cautious, with a number of “well publicised macroeconomic headwinds on the horizon”, including cost increases, supply chain issues and “potential squeezes” on consumer spending power.
It warned that there was also still the risk that Covid-19 measures could adversely affect its outlook, particularly as restrictions begin to return in light of the Omicron variant.
Nonetheless, the group said it believes it can achieve a pre-tax profit of between £300m and £350m for the period ended 24 April 2022, on the basis there are no “substantial” lockdowns imposed in the UK, particularly over the Christmas period.