24th Oct 2013 08:06
LONDON (Alliance News) - Inchcape PLC Thursday said it delivered a "robust trading performance" in the third quarter, with revenue up 7% to GBP1.625 billion at actual currency, 7.8% at constant currency.
The automotive distributor and retailer also reports a 3.5% rise in like-for-like revenue at actual currency, up 4.2% at constant currency.
Inchcape said it has benefited from its international portfolio and long-standing partnerships with premium automotive brands, reporting total revenue for the nine months to September 30 2013 of GBP4.937 billion, up 6.7% at actual currency and 6.1% at constant currency. Like-for-like revenue was up 2.5% and 1.9% at actual and constant currency, respectively.
The company said it saw demand for new cars ahead of the previous year, and in line with expectations, as the firm benefits from growth in premium and luxury segments. Inchcape's used car and aftersales business - accounting for 60% of the firm's gross profit - performed well as the warranty car parc is starting to increase following three years of consecutive growth in the new car market, said the firm. The car parc refers to the number of vehicles in a particular region or market, used to gauge the capacity within an area for aftersales.
Inchcape said it expects to end the year with a net cash position of approximately GBP180 million, before taking account of its share buyback; the GBP100 million programme began August 29 this year. To date, the firm has purchased 3.85 million shares at an average price of 614 pence per share for a total consideration of GBP23.8 million.
On a regional basis, the UK recorded a strong performance for the period, with growth of 13.4%. Inchcape said the market benefited from new car sales growth and strength in its brand portfolio in the premium and luxury sectors, despite a sector backdrop of margin pressure on vehicles, said the company.
On the whole, the European arm performed well in a competitive environment, said the company, supported by the launch of new Inchcape products, a lower cost base and strong aftersales operations.
North Asia records like-for-like growth of 7.1% at constant currency, driven in part by solid growth of its warranty car parc in Hong Kong, said the firm. Market share was also gained in South Asia, although the new car market in Singapore was lower than last year. Inchcape said de-registrations have now increased for 13 consecutive months, paving the way for the industry to recover as of next year.
Emerging market and Russian divisions record 6.7% growth at constant currency, benefiting from sales growth in new vehicles and aftersales in South America, Africa, China and Eastern Europe. Inchcape said that trading conditions in Russian remain challenging due to competitive pressure on new car margins.
The firm said it expects full-year results to remain robust and that it is well positioned to benefit from consolidation opportunities and growth prospects in the automotive market.
Shares in Inchcape were up 1.53% to 632.00 pence per share in early trading Thursday.
By Alice Attwood; [email protected]; @AliceAtAlliance
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Inchcape