CRH mulls more share buybacks after €1bn return

CRH is expected to launch another share buyback programme and announce details later this month.

CRH mulls more share buybacks after €1bn return

CRH is expected to launch another share buyback programme and announce details later this month.

The construction materials group has completed the €1bn buyback programme it began last May, which saw it purchase 35.6 million of its shares from investors. In announcing that, CRH said it is considering another buyback round in order to return further excess cash to investors.

"Further share buybacks are under active consideration and details will be announced as part of our trading update announcement on April 24," the group said.

That trading update will be published a day before CRH's AGM during which the company will seek allowance to purchase more of its shares.

"The group has again sought authority to purchase up to 10% of its shares at the AGM, so another buyback looks likely. Combined with the full year dividend of 72c per share, the group will have returned €1.6bn to shareholders in the past year," said Davy analyst Robert Gardiner.

When CRH issued its 2018 annual results at the end of February, chief financial officer Senan Murphy said buybacks are now "an ongoing part of the way we think about capital allocation going forward".

CRH's share price - up by just over 5% over the past 12 months - fell marginally on the announcement of the conclusion of the buyback programme.

At the time of its financial results, CRH also said it would maintain its strong acquisition strategy - as well as possibly undertaking more share buybacks. It recently defended its organic growth capabilities after suggestions that new activist investor Cevian Capital viewed the Irish group's strategy as being too heavily dependent on acquisitions.

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