Advertise with fastmoving.co.za
 
 

David Nurek.
David Nurek.

Buyback nod fails to boost Lewis

RETAILER NEWS

By Ann Crotty - Oct 18th 2017, 08:22

The prospect of renewed share repurchasing failed to move the Lewis share price on Tuesday and it closed marginally weaker at R27.45. At the annual general meeting earlier in the day, 99.9% of shareholders voted to give the board authority to repurchase up to 5% of the shares in issue. 

In early October, the company informed shareholders that in the four months to end-September, it had exhausted the authority, granted at the 2016 meeting, to repurchase 3% of the firm’s shares. In those four months, Lewis spent R95m repurchasing 2.9-million shares at R28.62-R35.50.

This was the first repurchasing the group had done since 2009. In 2005-09, it repurchased 11.1-million shares at an average price of R50.67 a share.

Tuesday’s meeting was one of the briefest in recent years. There were no shareholder questions and the board offered no comment on the group’s recent performance or future prospects. Outgoing chairman David Nurek said the delay in the timing of the meeting meant it was in a closed period and the board was unable to issue comment. A trading update would be released no later than October 27, he said.

Analysts are expecting the interim results to reflect continued strain as management deals with difficult trading conditions and tougher regulations.

There was evidence of concern at the meeting on a number of issues including Nurek’s election as nonexecutive director and Hilton Saven’s election as a member of the audit committee. In addition, 13% of shareholders voted against the remuneration policy and the reappointment of PwC as auditors.

© BusinessLIVE MMXVII 

Read more about: retail | ncr | lewis stores | lewis

Related News

9 safety tips to help curb cash crimes in SA's stores
22/04/2019 - 10:03
Retailers must accept that cash crime is prevalent in SA and not going away any time soon, says Richard Phillips, joint CEO of retail cash management company Cash Connect.

Retail sales beat expectations in February
19/04/2019 - 12:39
SA shoppers spent more than expected in February, with retail sales growing 1.1% year on year, led by expenditure in the textiles, footwear and clothing sector.

Asian revenue surpasses European for first time at L’Oreal
18/04/2019 - 09:07
L’Oreal got more revenue from Asia than from Western Europe for the first time last quarter as the region’s surging demand for luxury products continued to resist the drag of a slower Chinese economy.

Easter is also a feast for criminals, retailers and consumers warned
18/04/2019 - 09:01
There is a tendency among criminals to use the Easter long weekend - and its spike in shopping - to their advantage, says Richard Phillips, joint CEO of retail cash management company Cash Connect.

Checkers hot cross buns go viral
17/04/2019 - 13:42
Checkers hot cross buns are trending on social media and South Africans are in stitches following the release of a viral video in which a false-positive breathalyser reading was recorded for a police officer.