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.

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

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
The MoneyWeek Podcast: bitcoin special
Bitcoin

The MoneyWeek Podcast: bitcoin special

Merryn talks to bitcoin experts Dominic Frisby and Charlie Morris to get the lowdown on the cryptocurrency to find out why it's such a huge global phe…
15 Jan 2021
Free 6 issue trial then continue to