(Sharecast News) - MP Evans announced its decision to extend its share buyback programme on Monday, which was due to expire on 31 December.
The AIM-traded firm said the programme would now run to 31 March next year, while its budget was being expanded by a further £2m.
Since launching the programme, the group said it had purchased 469,859 shares at an average price of 851p each, at a total cost to date of £4m, making up the total approved budget so far.
All shares acquired under the programme had been, or would be, cancelled.
"The Board continues to believe the current share price undervalues the group's assets, the performance of the business to date and its future prospects," the board said in its statement.
"The group's robust balance sheet provides the opportunity to take advantage of prevailing market conditions to repurchase shares at advantageous levels that will enhance earnings."
MP Evans said it was undertaking the programme as part of its "disciplined approach" to capital allocation, which included continuing investment across its estates, the ongoing pursuit of strategic acquisition opportunities, and the payment of dividends at an increased level.
"The board sees a case for buybacks being economically attractive since the group's shares are currently trading below the share price implied by the independent valuation of its assets."
The programme would still operate under the authority granted by shareholders at the firm's most recent annual general meeting on 10 June.
At 1123 GMT, shares in MP Evans Group were up 3.92% at 812p.
Reporting by Josh White for Sharecast.com.
M P Evans (MPE)