Inchcape sees solid 2012
Car dealership Inchcape said first quarter revenue increased a better than expected 1.4% increase in like-for-like sales and said it expects a solid performance for the full year.
Car dealership Inchcape said first quarter revenue increased a better than expected 1.4% increase in like-for-like sales and said it expects a solid performance for the full year.
The group, which sells brands such as Porsche, Mercedes-Benz, BMW and Toyota, said group revenue was slightly better than expectations at £1.561bn.
Commenting on trading, the group said: "In the first quarter, as expected, we saw the continuation of an uneven global recovery in the car industry and supply constraints in Australia and Singapore."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Revenues from new cars were ahead of expectations due to the strong performance of its premium and luxury brands both in the UK and in its Russia and Emerging Markets segment. Inchcape's used car margins remained solid and its Aftersales business continued to perform well, it said.
In the UK like for like revenues rose 4.9% in the quarter, ahead of expectations. Its European business delivered, what it called, a resilient financial performance in line with expectations. Revenue declines in new car sales were partially offset by a solid Aftersales performance and previously announced cost reduction actions.
Looking ahead Inchcape said it expects solid growth for premium and luxury vehicles in Asia Pacific and the Emerging Markets and continuous market share gains from luxury brands in the UK, while trading conditions in Europe will remain challenging.
CJ
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Higher rates are disappearing – should you fix your savings?
Fixed savings rates have dropped to their lowest levels in over a year. Should you fix your savings now ahead of a potential base rate cut in November?
By Katie Williams Published
-
Nine million people fall victim to financial scams, says Citizens Advice
The charity says that around one in five people across the UK have been caught out by a finance scam in the past year - here is how to protect your money
By Chris Newlands Published