18th Mar 2020 14:52
(Alliance News) - Sage Group PLC on Wednesday said that it has decided to suspend its recently announced share buy-back programme to preserve liquidity in light of the current Covid-19 pandemic.
The enterprise software company said it has a strong balance sheet and low debt, supported by a resilient, recurring revenue stream and robust cash flow generation.
"Whilst the impact of COVID-19 on Sage's business performance to date has been limited, the board believes that given the highly uncertain economic outlook it is prudent to suspend the share buy-back," the company said in a short statement.
Earlier in March, Sage said it has begun a share buyback of up to GBP250 million following completion of the GBP232 million sale of its Sage Pay unit to Evalon, a subsidiary of US Bancorp.
The FTSE 100-listed company plans to consider restarting its share buy-back programme in due course.
Shares in Sage were up 0.7% at 582.60 pence each in London on Wednesday afternoon.
By Tapan Panchal; [email protected]
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