<p>Redrow has launched a share buyback programme, it announced today (July 14).</p> <p><span>Under the programme, the housebuilder will purchase ordinary shares of 10.5p each in the company, up to a maximum of £100 million.</span></p><p></p> <p><span>The buyback consists of two tranches. For the first tranche, Redrow has instructed investment bank Peel Hunt to buy shares up to a maximum consideration of £50 million. Barclays Bank will undertake the second tranche. The “primary purpose” of the buyback is to reduce the company’s share capital.</span></p><p></p> <p><span>The business said that its “primary capital allocation policy” was to grow, with its secondary goal to pay out a regular dividend of a third of its earnings. “Any material amount of surplus cash beyond those needs is intended to be returned to the company's shareholders,” it said.</span></p><p></p> <p><span>Redrow explained that it had reviewed its cash needs to achieve its growth plans, following its return to growth and continued cash generation after the first lockdown. The company’s board concluded that it had sufficient funds to enter into a capital return programme of up to £100 million.</span></p><p></p> <p><span>“Given the current share price, the company has decided to execute this cash return in the form of a share buyback programme,” …