They have set aside £300m to buy back own shares. I calculate this to represent 4.82% of shares based on Mkt Cap of £6,220m. About the same as they pay out in dividend. I would prefer a special dividend instead. A special div of similar amount would be expected to make SP fall about 4.8% on ex-div day. SP up about 3% today so perhaps justified.
Just been looking at details for BLND on SharePad. Lots not good which explains under performance over the last few years. FCF Converversion only 20% (A value below 100% indicates that the company is collecting less cash than it is booking as profit. There can be good reasons for this such as capital expenditure. Where free cash conversion is 75% or higher the value will be covered green; between 25% and 75%, orange; and below 25%, red.). ROCE is only 3.2% which is poor.
Dividends good with a forecast yield of 5.0% covered 1.2X and 6 years of div growth. Very good bit is forecast pre-tax profit growth of 97.6%. Because of that I’ll give them a weak buy opinion.