Grafton Group, owner of Chadwicks and the Woodie’s DIY chains in the Republic, said on Tuesday it has hired brokers to buy back a further £25 million (€29 million) of its own shares. It followed the builders merchanting and DIY retailing company having spent about £430 million since 2022 repurchasing and cancelling more than a fifth of its stock – against the backdrop of a declining share price. Goodbody Stockbrokers and Numis Securities will manage the buyback, which will end no later than October 31st, subject to market conditions. Grafton, which is based in Dublin but listed in London, committed to continuing with share buy-backs as chief executive Eric Born and chief financial officer David Arnold unveiled a medium-term strategy in a capital markets day for investors on June 11th. “We do think that the real benefits of this programme will be felt by shareholders once the recovery in our weaker markets takes hold,” Arnold said at the event. “Now it’s important to think when we’re thinking about cash generation and our balance sheet to also consider what the board thinks about financial leverage. We’re a cyclical business and we need to manage the business accordingly with one eye firmly on the long term.”Shares in Grafton have are down about 36 per cent from their 2022 highs as its British, Dutch and Finnish businesses have struggled against the backdrop of weak construction activity in their respective markets. It followed a boom in sales during the Covid pandemic when construction was deemed a critical industry and DIYers spent heavily on doing up their homes and gardens.However, the group is aiming to grow earnings per share (EPS) at a compound annual rate of more than 10 per cent out to 2030, driven by ongoing strength in the Irish market and recent acquisitions in Spain, where the economy and construction activity have outpaced the wider European market in recent years. Grafton made an initial foray into Spain in late 2024, with the €132 million purchase of Barcelona-based air-conditioning and heating products distributor Salvador Escoda. It followed up last month by buying another Spanish air-conditioning company, Mercaluz, which also has sales in Portugal, in a deal worth up to €175 million.Executives signalled at the capital markets day that they see a big opportunity for more deals in the air-conditioning and other merchanting areas in Iberia, given how fragmented the market is.