TradeSmart members take equity in CPS

by | Aug 31, 2022

Central Purchasing Services (CPS) has recently undertaken a major share re-structure, driven by a desire for the business to remain member-owned and member-governed.

CPS General Manager Stephen Wren announced yesterday that as a vital part of the restructure, CPS has welcomed TradeSmart members’ acceptance of an invitation to take equity in the overall CPS business,

“TradeSmart was a privately owned group before being acquired by CPS. The strategic plan is to ensure that members in all the company’s business channels have an equal opportunity to share in the governance and success of the business. The issuing of shares to TradeSmart members cements this objective in place,” Mr Wren said.

In the days following the share issue, Mr Wren said that TradeSmart and CPS members welcomed an announcement that the company would immediately pay an extraordinary rebate, above the standard trading rebates, to all active shareholders.

“While the company is not opposed to paying dividends, we wish to ensure that members are rewarded for supporting the company’s objectives. Additional rebates are, therefore, the natural vehicle for distributing surplus capital in a manner consistent with our objectives.”

“The board’s confidence in the business’s ongoing trading results is reflected in the decision to pay its largest ever Special Rebate immediately. The board will again review the opportunity to make a further special rebate distribution in October, in line with the company’s regular business timetable,” Mr Wren said.

In the past twelve months CPS has re-purchased a substantial volume of its shares from retired and legacy members. Mr Wren said that this means current active members will soon have ninety per cent of the total shareholding of the business, ensuring that the company’s future is firmly in the hands of its loyal members.