By Gemma Taylor - WHSmith will recover £50 million of shares for the financial year to August 31st 2012 as part of a share repurchase programme, it was announced today.
In October 2010, the general merchandise retailer announced a share repurchase programme for the financial year to August 31st 2011 of £50 million. This was completed on August 11th 2011 and was extended by £5 million, and completed on August 26th.
The stationery specialist’s decision to instigate a further programme was taken in light of ongoing financial difficulties within the retail sector and comes just weeks after the company was attacked by supermarket Asda over the high price of its back to school range.
A statement released by WHSmith stated that the buy back programme will be managed by an independent third party, and said that the current economic situation was a deciding factor.
“In light of current market conditions, the board believes it is appropriate to maintain flexibility on the timing of any purchases and will commence a non-discretionary programme to purchase ordinary shares for cancellation during its close period which commences on September 1st 2011 and is scheduled to end on 13 October 2011,” the statement said.