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
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
