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Car dealer group Inchcape reports rising sales in UK

Car dealer group Inchcape has reported double-digit growth in its UK revenues in the third quarter of 2013.

In an interim trading statement Inchcape said it achieved like for like revenue growth of 13.4% in Q3 as it benefited from new car market growth and the strength of its franchise portfolio in premium and luxury segments against a backdrop of margin pressure on vehicles.

It said aftersales continued to perform well.

Inchcape's global chief executive Andre Lacroix said the group delivered a robust trading performance benefiting from its broad international portfolio of 26 markets and from its long standing partnerships with the leading premium and luxury brands in the automotive market.

Revenue in the third quarter was £1.625bn up 7.0% at actual currency (up by 7.8% at constant currency) compared to the same period last year.  Like for like revenue was up 3.5% at actual currency (up by 4.2% at constant currency).

Total revenue for the first nine months to 30 September 2013 was £4.937bn up 6.7% at actual currency (up by 6.1% at constant currency) compared to the same period last year.  Like for like revenue increased 2.5% at actual currency (up by 1.9% at constant currency).

He added: "The group is on track to deliver a robust trading performance in 2013, which is a testament to the strengths of the Inchcape business model and our differentiated Customer 1st Strategy.

"Our business has a track record of delivering sustainable earnings growth with a high return on capital employed.  We remain very disciplined on cost and our balance sheet is strong as we maintain our focus on cash conversion.

"We operate in the right markets, with the right brands and in the right categories given our international footprint, our focus on premium and luxury brands and our diversified profit streams. Inchcape is very well positioned to take advantage of the growth prospects in the global automotive industry to deliver sustainable returns to our shareholders."

Click here for Inchcape's full statement.

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