Inchcape suspends share buyback amid Covid-19

Car dealership Inchcape said on Friday that it was suspending its share buyback programme due to the Covid-19 pandemic.

"Given the ongoing uncertainty around the pandemic, the board is taking the prudent decision to temporarily suspend the £150m share buyback programme that was launched in February," it said.

The company insisted it has a strong balance sheet and remains committed to its disciplined capital allocation policy, but said it was "the right decision at this time". To date, it has spent around £25m buying shares in the programme.

Inchcape said trading since its update in February has been broadly in-line with expectations. However, given the rapidly-evolving global situation, it will refrain from giving any forward guidance until it has a better idea of the duration and severity of the pandemic and the impact on supply and demand.

"We will update the market as and when appropriate," it said.