(Alliance News) - Inchcape PLC on Friday said it will suspend its share buyback programme due to uncertainty arising from the Covid-19 outbreak.
The automotive retailer said it has completed around GBP25 million of the GBP150 million repurchase programme but will serve notice to its brokers to terminate the buyback effective from next Tuesday.
"Inchcape has a strong balance sheet and remains committed to its disciplined capital allocation policy, but the board believes this is the right decision at this time," the company said.
As at the end of 2019, the company had cash of GBP423.0 million with total assets valued at GBP4.46 billion.
The FTSE 250-listed company said that although it continued to trade "broadly in line with expectations", it has put any guidance on hold until it is able to assess how supply and demand may be hurt by the coronavirus outbreak.
Shares in the FTSE 250-listed company were trading 0.8% lower at 482.00 pence each on Friday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Inchcape (INCH)