London, March 5, 2026, 09:41 GMT
- On March 4, Imperial Brands bought back 160,607 shares for cancellation, paying an average of 3,248.54 pence each.
- The previous day saw the company repurchase 641,958 shares, paying an average 3,238.10 pence apiece.
- The UK’s tobacco and vapes bill is moving closer to its next hurdle in Parliament, with lawmakers preparing to advance legislation that would gradually end sales to younger generations.
Imperial Brands PLC (IMB.L) snapped up 160,607 shares on March 4 as part of its ongoing £1.45 billion buyback that kicked off in October. The shares, purchased through Morgan Stanley and set for cancellation, will bring the total number of ordinary shares outstanding down to 787,577,474 once settled, not counting any held in treasury.
Incremental buybacks might appear routine on the surface; still, investors are paying close attention to the steady trickle. Every cancellation reduces the total shares, potentially bumping up earnings per share, while making sure cash returns stay in focus between earnings reports.
This comes as tobacco companies face pressure on two fronts: continuing shareholder payouts while ramping up spending on alternatives and regulatory compliance. With nicotine regulations tightening, Westminster’s timeline is back under scrutiny and enforcement costs are edging higher.
Shares purchased “for cancellation” get retired for good—they’re not coming back into play. Treasury shares, on the other hand, are already owned by the company and excluded from the public float.
Imperial disclosed on March 3 that it bought back 641,958 shares for cancellation, paying an average price of 3,238.10 pence. The company reported a share count of 787,738,081 after the cancellation, not counting treasury shares.
Imperial ended Wednesday at £32.70, up 2.28%, according to MarketWatch, beating the FTSE 100’s 0.80% gain. Even so, shares are still trading roughly 10% under their December 52-week peak.
Imperial’s got a couple of key deadlines coming up. The company is set to pay its final dividend on March 31, according to its financial calendar. Investors will get a trading update on April 14, and half-year results are slated for May.
Regulation is still in flux. The Tobacco and Vapes Bill, currently with the House of Lords, aims to ban tobacco sales to anyone born on or after Jan. 1, 2009. It would also bring in retail licensing and set up a national register for nicotine sellers, according to the bill’s official summary.
The report stage wrapped up in the Lords on March 3, with third reading set for March 9, according to Parliament. It’s a procedural hurdle, yet it edges the bill forward—closer to the point where the nitty-gritty of secondary regulations starts impacting retailers and manufacturers.
The buyback pace isn’t immune to risk—it could drop off fast if cash generation falters, or if tighter regulations and higher taxes start biting, cutting into legal volumes and shifting demand to illicit markets. During a House of Lords debate this week, Labour peer Lord Forbes of Newcastle pointed to legal opinions ordered by the Tobacco Manufacturers’ Association—which, according to him, includes BAT, JTI and Imperial—and highlighted the sector’s history of threatening lawsuits.
Imperial’s next test: sticking with its buyback program while still pouring cash into nicotine products and compliance efforts. Shifts in that balance usually turn up in the next update’s tone—don’t look for clues in the day-to-day buyback disclosures.
