Inchcape performance and profitability continues to ‘exceed expectations’

Inchcape has revealed that its year-to-date financial performance has “exceeded expectations” in a brief trading update issued today (June 18).

Delivered just over a month before publication of its interim results on July 29, the AM100 PLC’s statement said that the “encouraging trends” that had been observed within its Q1 update on April 29 had continued.

It added that, during the period since, it had seen its car distribution and retail businesses benefit “both from an uptick in demand and margin resilience”.

Inchcape now expects to deliver full-year profit before tax (pre-exceptionals) significantly ahead of the £216 million published market consensus.

Issued via the London Stock Exchange, the group’s statement added: “There is still a high level of uncertainty about the second half, both in terms of the pandemic situation and issues relating to supply due to shortages of semi-conductors, which have had a limited impact on the Group to date.”

• Inchcape UK chief executive, James Brearley, is the subject of a car retailer face-to-face interview in the latest edition of AM magazine, which has reached subscribers this week and is now available, in its digital format, online.

Last month Inchcape disposed of its Jaguar Land Rover (JLR) Arch concept premium car dealership in York to Lloyd Motor Group.

The move was made as the business completes a restructure aimed at delivering localised marker dominance, Brearley told AM.

Brearley also told AM that the group intends to leverage its used car expertise with the creation of a 20-site standalone division, each with an adjoining fast-fit aftersales offering, by the end of next year.