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Jan 9 2025, 07:51 GMT
Grafton Group
Latest share buyback completed; valuation attractive
- Sectors : Builders Merchants
- Companies : Grafton Group
DAVY VIEW
Grafton has announced the completion of its latest share buyback programme of £30m. By our reckoning, it has now repurchased over 18% of its equity for around £375m since May 2022. Despite this, the group enters 2025 with significant net cash excluding leases (possibly over £250m). This affords it considerable scope to pursue an active capital allocation strategy such as the Q4 platform acquisition of Salvador Escoda. The recent weakness in the Grafton share price leaves its valuation attractive at a 2025 P/E multiple of under 12.5x.
