Inchcape rises on strong first quarter revenue

Inchcape shares rose on Thursday after the company revealed a 4.5 per cent rise in group revenue over the first four months of the year.

Coming in at £2.158bn, revenue was up 3.5% at constant currency and 0.9% on a like-for-like basis.

In a statement the group said: "Demand for New Cars was in line with our expectations as we continue to benefit from our broad international portfolio of 26 markets and from our scale exposure to the premium and luxury segments.

"Our Used Car business and our Aftersales activities which represent around 60% of the group's gross profit performed well, as the Car Parc is starting to grow following three years of consecutive growth in the New Car market.

"Our disciplined approach to cost management and control of working capital remains firmly in place."

The group expects to deliver a 'robust' performance this year, and plans to grow Aftersales, improve its margin and control working capital effectively.

Chief Executive Andr Lacroix added: "The group is on track to deliver its full year targets given our performance in the first four months of the year, despite pressure on New Vehicle margins in some of our markets.

"We operate in the right markets, with the right brands and in the right categories as we benefit from our scale presence in Asia Pacific and Emerging Markets, our focus on premium and luxury brands and our diversified profit streams."

The share price rose 3.7% to 546p by 10:50 Thursday.

NR