Inchcape reports 'strong' third quarter performance, despite currency headwinds
Automotive retail and services company Inchcape reported a strong third quarter performance, with revenue up 10.6% year-on-year at £1.697bn at constant currency.
Inchcape
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16:35 25/04/24
At actual currency revenue climbed 4.4% and 6.0% on a like-for-like basis.
Total revenue for the first nine months to the end of September was £5.033bn, up 9.6% at constant currency and 1.9% at actual currency compared to the same period last year.
"Demand for new cars was strong and well ahead of last year, as we continue to benefit from both the strength of our unique geographic portfolio and the sustained growth in the premium and luxury segments," it said.
Its used car and after-sales activities, which represent around 60% of the group gross profit, delivered a robust performance, fueled by the growth of the 1-5 year Car Parc in the majority of its markets.
Strong performances were seen in Australia and North Asia, while emerging markets and South Asia were solid.
"In the UK, performance was strong with like-for-like revenue growth of 11.8% as we continue to benefit from sustained growth in the new car market reflecting the strength of our brand portfolio in the premium and luxury segments," it said.
The group expects to end the year with around £200m cash, excluding the effects of the July share buyback.
Looking ahead, Inchcape expects to deliver a strong underlying constant currency performance in 2014.
"Notwithstanding the competitive pressure on vehicle margin in some of our markets, we are well positioned to take advantage of the attractive growth prospects in the premium and luxury segments and continue to outperform the industry," it added.