Source - Alliance News

Supreme PLC on Monday unveiled a share buyback, announced strong trading and moved to soothe investor worry related to a UK clampdown on disposable vaping products.

Shares in the Manchester-based consumer products manufacturer and supplier were up 7.8% to 113.20 pence each in London on Monday afternoon.

Supreme said it enjoyed an ‘excellent trading performance’ in the three months to December 31, its third-quarter, which is traditionally its busiest.

On the back of that success, it plans to launch a share buyback of up to £1 million.

Supreme said: ‘This initiative reflects the board’s confidence in the company’s future value and our dedication to enhancing shareholder returns.’

The announcement came after the UK announced a possible crackdown on disposable vapes. Supreme said it is ‘ahead of the curve’ and has already implemented ‘a number of proactive measures’.

‘Supreme remains confident that vaping is, and will continue to be, the most credible and effective alternative to cigarettes. Supreme has an established suite of fully compliant rechargeable pod systems, produces over 60 million 10ml bottles of e-liquid annually and has already become a principal supplier to the UK government’s ’swap to stop‘ scheme. None of these revenue streams are expected to be adversely affected by the changes proposed by the government earlier today,’ Supreme added.

Back in October, it said it was tackling an increased interest from underage people in its vaping products.

It said it would adopt plain packaging, discontinue all brightly coloured disposables, change names of flavours to remove its appeal for underage people, trade only with retailers with age robust verification, and co-operate with the UK government.

Prime Minister Rishi Sunak set out plans to get rid of disposable vapes to protect children’s health as he faces a backlash from the Tory right over his proposed tobacco sale ban.

During a school visit on Monday, the PM said he is taking ‘strong action’ to ‘stamp out’ youth vaping, following a public consultation on the issue in which almost 70% of respondents were in favour of a ban.

It is already illegal to sell vapes to anyone under 18, but evidence shows disposable vapes – which are cheaper and sold in smaller, more colourful packaging than refillable ones – are driving the rise in youth vaping.

The ban is expected to come into force at the end of 2024 or the start of 2025.

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