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."
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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
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