Frasers launches £70m share buyback

Retailer Frasers Group has launched a fresh £70m share buyback programme, it confirmed on Monday.

The former Sports Direct, which is run and controlled by Mike Ashley, said the programme would start on Monday and run until April 2022. The maximum number of shares that may be purchased under the scheme is 10m.

Frasers said the programme was intended to reduce the company’s share capital. It follows a previous £60m share buyback announced earlier this year, which ran until the start of December.

Ashley, who intends to stand down as chief executive next year in favour of his Michael Murray, his daughter’s partner and the current head of elevation, holds a stake of about 66%.

Last week Frasers, which also owns House of Fraser and Game as well as Sports Direct, posted a surge in half-year profits after stores reopened, despite ongoing uncertainty over the pandemic and ongoing supply chain issues. Full-year profits are expected to be come in between £300m and £350m, assuming there are no more substantial lockdowns.