29th Jul 2021 14:57
(Alliance News) - Inchcape PLC on Thursday said it experienced a strong first half to the year after realising its "strategic priorities", with revenue growing 30%.
Revenue climbed to GBP3.93 billion in the six months ended June 30 from GBP3.02 billion in the same period last year. Inchcape added organic growth was 37%.
Alongside revenue growth, the London-based automotive retailer and distributor swung to pretax profit excluding exceptional items of GBP142.9 million from GBP9.5 million.
The largest exceptional item the company booked was its disposal of retail operations in Russia.
Including exceptional items, the company swung to pretax profit of GBP61.3 million in the half, compared to a loss of GBP188.3 million in the same period in 2020.
Chief executive Duncan Tait said Inchcape anticipates full year pretax profit of "at least" GBP260 million. The firm's pre-exceptional profit before tax was GBP129 million in 2020.
"Looking ahead, whilst there continues to be a high level of uncertainty, both in terms of the pandemic and widely reported issues relating to supply, we expect that the strong first half performance - which in part reflected pent-up demand - will underpin our full year results," said Tait.
Inchcape paid an interim dividend of 6.4 pence after cancelling it to weather the Covid-19 pandemic last year.
The six month figures come as Inchcape unveiled its partnership with Chinese automobile manufacturer Geely Auto. The Zhejiang-based company will initially distribute alongside Inchcape in Chile, developing its international reach on a country-by-country basis.
Tait added: "We have made encouraging progress in realising our strategic priorities, with our central focus on distribution excellence.
"Of particular note is the greater and accelerated use of data and digital. This is evident in the roll-out of our omni-channel capability and the launch of our Digital Delivery Centres."
In addition, the company tipped a "healthy M&A pipeline" with active pursuits taking place and has launched a GBP100 million share buyback programme to be completed before its full year results.
Shares in Inchcape were up 2.5% at 864.50 pence in London afternoon trade on Thursday.
By Josie O'Brien; [email protected]
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