Share buybacks and director investment to boost key stocks
Two prominent North West brands Pets at Home and Franchise Brands have announced share buy back programmes this morning.
The move coincides with THG founder John Gallemore splashing out £500,000 of his own money to purchase shares in THG on Friday.
Share buy backs and director investments create a positive dynamic and confidence in companies.
THG has long claimed its shares are undervalued and activist investor Kelso has urged the company to buy back stock as an indicator it believes in its own strategy.
Despite positive year end results and analyst comment, as reported on TheBusinessDesk.com, Pets at Home shares took an unexplained nosedive last week. After peaking at 392p in mid June, they closed at 365p on Friday.
This morning (26 June) the board announced the commencement of a £50 million share buyback programme in two tranches to reduce the company’s share capital as all shares purchased in the programme will then be cancelled.
A second tranche is expected to be undertaken by HSBC.
Separately, chief executive Lyssa McGowan has also purchased 62, 668 shares in the company at £3.78 each, while finance director Michael Iddon has bought 41, 847 shares, both under the terms of an option scheme.
On a much smaller scale, Franchise Brands plc, the AIM listed multi-brand franchise business, is to use cash reserves to buy ordinary shares in the company over the next six-months up to an aggregate value of £1,500,000.
Those shares will be bought by the Franchise Brands PLC Employee Benefit Trust in order to mitigate the dilutive impact of share option awards and to improve overall shareholder return.
THG John Gallemore has bought a chunk of THG shares at the present market price of 77p.
An Executive Director of the business he has bought 578,710 shares, making his investment at just shy of half a million pounds.
Non-executive director Sue Farr and her spouse, Anthony Mair have both each bought shares for about £30,000 each.
