Shares of Perth-based transport giant Stagecoach Group rose 5% on Thursday after it announced a share buyback programme worth up to £60 million.

“The Stagecoach board believes that following the recent announcements regarding UK Rail coupled with the completion of the sale of the North America business, it is an appropriate use of our cash at this time to buy back our own equity,” said Stagecoach.

“The intention is to complete the buy back over the next 12 months. 

“However, the board of Stagecoach will keep the form and quantum of the programme under review. 

“The purpose of the buyback is to reduce the share capital of Stagecoach and it will take place within the limitations of the authority granted to the board of Stagecoach at the general meeting, held on 31 August 2018, pursuant to which the maximum number of shares to be bought back was 50,000,000 …

“The repurchased ordinary shares will be held in treasury …”