Kitchen and joinery specialist Howdens has launched the first phase of a huge £250 million share buy-back scheme.
The East Yorkshire firm, which announced huge expansion plans in its home county when record results were announced last month, has instructed joint broker UBS.
It will repurchase up to £125 million of shares between now and July 29, while seeking further shareholder authorisation at the 2022 annual meeting, scheduled for May 12.
Read more: Howdens unveils East Yorkshire expansion plans as £2b business builds to grow
The buy-back was announced as results revealed the FTSE-250 firm had become a £2 billion revenue business, with the 778 depots across the UK and into Europe generating strong sales as home improvement became high demand post-lockdown.
The new build homes market is also accelerating.
In a statement issued to the City today, Howdens said the first part of the programme was to be executed by way of a non-discretionary arrangement.
A spokesperson said: “The programme is in line with the company's stated capital allocation policy, which prioritises our strategy of continuing to invest in depots, manufacturing and logistics capabilities and related strategic investments, while delivering a progressive dividend.”
UBS, an independent third party, will act as principal and will make decisions under the programme independently from the company.
Shareholders backed the repurchase of up to 59,708,863 ordinary shares at the annual general meeting held in 2021. Shares repurchased will be cancelled to reduce the share capital of the company or transferred into treasury.
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