Shares in Supreme (LSE: SUP) jumped over 10% on Monday after the consumer goods supplier announced a £1 million share buyback scheme on the back of “excellent” third quarter trading.
The update came as Prime Minister Rishi Sunak set out plans to ban the sale of disposable vapes in England to protect children’s health.
In a trading update for the three months to December 31st, traditionally its busiest period, Supreme said it enjoyed an “excellent trading performance” but did not provide any figures. The company announced the share repurchase programme in a sign of confidence in its future value and to enhance returns for investors.
Read More News:
Flutter proposes switching primary listing to NYSE
Supreme also responded to the proposed crackdown on disposable vapes, saying it has already taken “proactive measures” and does not expect any adverse impact on its business.
The company said it is ahead of the regulatory curve, having already implemented plain packaging, removed brightly coloured disposables and flavours appealing to underage users.
With its focus on rechargeable vaping products, e-liquids and supplying the NHS stop smoking scheme, Supreme said it remains confident that vaping will continue as the most credible alternative to cigarettes.
The share buyback indicates it sees little threat from tighter vape regulations announced by Sunak during a school visit on Monday.
