24th May 2018 09:44
LONDON (Alliance News) - FTSE 250-listed automotive retailer Inchape PLC said on Thursday it saw solid revenue growth for the first four months of 2018.
Group revenue for the four months to the end of April was GBP2.30 billion, up 2.9% from the year before through growth in Asia, Australasia and the Emerging Markets, which more than offset declines in UK & Europe .
In Asia, revenue rose by 4.4% as Inchcape saw a good Singapore performance with a solid market share gain, and profitability supported by product mix improvements, including higher SUV sales.
Australasia saw a 11% increase, through good growth in the Distribution division driven by a favourable market, recent Subaru launches and the consolidation of the Peugeot Citroen.
The Emerging Markets region saw the highest rate of growth, rising by 31% in revenue with Russia outperforming the market for imported brands and encouraging revenue rises across South America, compared to political dynamics in Ethiopia leading to softer new car sales.
The only black spot is UK & Europe, with revenue down by 1.1% as strong growth in Eastern Europe and the Balkans was more than offset by a continued UK market supply and demand imbalance, which put pressure on vehicle margins.
Inchcape said its outlook for 2018 has remained unchanged, expected solid profit increases year-on-year on a constant currency basis, through organic growth and its new acquisition in Central America.
"I am pleased with the strategic progress we have made in the period, despite a challenging market backdrop in some regions. Our performance over the first four months of 2018 is reflective of the trends we had anticipated at the start of the year and follow from those seen in the latter part of 2017. Over the period sales performance has been solid, with strength in Emerging Markets and Australasia offsetting weaker performance in UK & Europe," said Chief Executive Officer Stefan Bomhard.
Shares in Inchcape were down 0.9% at 732.00 pence on Thursday.
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