16th May 2014 07:58
LONDON (Alliance News) - Motor retailer Inchcape PLC Friday said it delivered "robust" revenue growth in the first four months of its new financial year, boosted by demand for its premium and luxury cars and strong growth in its used car and after-sales division.
The automotive retail and services company said group revenue increased to GBP2.21 billion in the four months to April 30, up 2.5% at actual exchange rates, and up 11% on a constant currency basis. Like-for-like revenue was up 0.8% at actual exchange rates and 9.5% at constant currency.
"Benefiting from broad-based growth across our markets and categories, we continue to expect to deliver a robust constant currency performance in 2014," said Chief Executive André Lacroix in a statement ahead of the Inchcape's annual general meeting Friday.
Inchcape said that demand for new cars, especially for premium and luxury cars in the UK, was robust and ahead of last year, while its used car and after-sales unit, which represents around 60% of the group's total gross profit, also performed well and ahead of last year.
The group said it has seen a strong revenue performance in the UK, with a like-for-like increase of 15%, and in its European business, supported by a recovery in the Greek market and increased markets share in Greece and Belgium.
In North Asia, revenue growth was supported by market share gains in the Hong Kong market, while its South Asia business delivered like-for-like growth of almost 23%, driven by a strong performance in the vehicle segment and recovery in the new car market in Singapore, Inchcape said.
Trading performance was in line with expectations in Australasia, it said, while emerging markets and its Russia segment delivered like-for-like growth of 8.4%.
"We have benefited from sustained growth in vehicle sales and aftersales in Chile, Peru, Ethiopia, China and Eastern Europe, while trading conditions remained challenging in Russia with competitive pressure on vehicle margin," the company said.
Last month, Inchape said that its Singapore subsidiary sold its 24 Leng Kee Road property to Wealth Assets Pte. Ltd. for SGD46.2 million, relocating the current body and paint operation at the site to another facility.
The company recently modernised its showrooms at 33 Leng Kee Road, and will use some of the money from the sale of 24 Leng Kee Road to redevelop the Pandan facility where the body and paint operations are moving to. That redevelopment will happen over the next few years.
"Industry growth trends are favourable to Inchcape as we will continue to benefit from structural growth across our categories in emerging markets, Hong Kong and Australasia, cyclical recovery in our UK and European operations and the important return to growth of the Singaporean market," the company said in a statement Friday.
Inchcape shares were trading down 2.1% Friday morning at 617.50 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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