Redrow share price boosted by share buyback announcement
Housebuilder Redrow's share price was boosted three per cent in morning trading after the company said it would be initiating a share buyback programme.
The FTSE 250 company recently posted record profits, but said fluctuations in the company's share price meant it would be aiming to buy back 10 per cent of its share capital.
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In a statement today, Redrow said: "As a result of recent fluctuations in the Company’s share price, the board considers that it is appropriate for the company to be in a position to buy back shares in the coming year if it would be in the best economic interests of the company to do so.
Read more: Housebuilders' share prices rise as the big-hitters brave the Brexit storm
"Accordingly, the directors intend to propose the buy back resolution at the 2016 AGM. It is the directors’ current intention to request authorisation annually going forward."
Robin Hardy, analyst at Shore Capital, said:
Redrow has been, and is forecast to remain, the least generous of the house builders in terms of dividend payments but this could go some way towards correcting that relative imbalance.
Redrow is one of a cluster of housebuilders to have shrugged off the Brexit vote in its post-referendum results. For the year ending 30 June, pre-tax profits at Redrow jumped 23 per cent, reaching £250m, and revenue was up 20 per cent to £1.38bn.