Inchcape has revealed that its revenues have increased by 13% in the first quarter according to the group’s interim management statement.
Revenues from new car sales were stronger than expected in several of Inchcape’s markets.
The group said used car margins remained robust and its aftersales business, which typically represents approximately 50% of the group's gross profit, continued to perform well.
Inchcape exited 2009 debt free.
Like many other dealer groups, Inchcape put a strong UK performance down to robust used car margins.
However, the group has warned that it expects a weaker new car market for the rest of 2010 following the end of the scrappage scheme.
Andre Lacroix, Inchcape group chief executive officer, said: “We are pleased with our first quarter performance, as we enjoyed our second consecutive quarter of like for like revenue growth at constant currency since the start of the global downturn in the fourth quarter of 2008.
“This strong performance demonstrates the strength of Inchcape's global portfolio, as the group has seen stronger demand for new vehicles in several markets around the world.”
Inchcape’s outlooks remains cautious for the remainder of 2010 and is not expected any sustained global car market recovery until towards the end of this year.
The dealer group is now focussing on five group wide priorities of growing market share and aftersales, while improving margins, controlling working capital and being more selective about its capital investments.