RE: Buybacks catastrophe….20 Oct 2025 22:35
Oh dear, someone's left the keys to the asylum lying around again.
Is this the third or fourth attempt at this conspiracy theory of yours?
Now I don't know if you know this or not but RR runs and employee share scheme where all employees can buy a certain amount of shares per month and they are given so many free shares by the company. It encourages ownership by the employees and hopefully rewards the company with a more loyal and hardworking workforce.
Would you rather the company create more shares in circulation to do that, or use some of the shares they have bought back?
Do you really think that they have cancelled R&D projects and capitol projects to afford this, I think not.
RR has spent, and is still spending a lot of money on modernizing of facilities and equipment. It's a lot of long term ongoing projects, things do not happen overnight in the aviation world.
Can you prove the share price has suffered because of this, it seems to have done rather well since Feb 28th when they started the buyback (£7.44 at close Feb 28th I think). You have absolutely no way of knowing if this would be better or worse if they hadn't commenced the buyback.
So yes, they keep some shares in treasury, for the reasons I have stated, and they write off some, thus making less in circulation and each of those worth slightly more.