Colefax Group PLC on Friday launched its share buyback scheme for up to £5.4 million.

The fabrics and wallpaper designer said it will repurchase up to 700,000 shares at a price of 765 pence each.

The purchase price represents a 3.2% discount to the share’s closing price of 790.00p on Thursday, being the last business day before the announcement.

The stock was down 3.2% to 765.00 pence each in London on Friday afternoon, giving Colefax a £60.7 million market capitalisation.

Broker Peel Hunt LLP will manage the buyback, and it will end no later than Wednesday next week.

This move will ‘enhance earnings’ for shareholders and reduce the company’s share capital, Colefax said.

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