Inchcape details 'excellent' FY23, expects more 'moderate' growth in FY24

Automotive distributor Inchcape detailed an "excellent" annual performance on Tuesday but tempered expectations for future growth.

Inchcape said group revenues were up 41% in 2023 at £11.4bn, pushing adjusted pre-tax profits 35% higher to £502.0m. Organic revenues were up 12%, while distribution organic growth was 16% stronger. Adjusted earnings per share rose 18% to 33.9p.

Operating profit growth and higher operating margins of 5.8%, up from 5.1% a year earlier, more than offset the impacts of higher interest rates.

The FTSE 250-listed group expects 2024 to be "another year of growth", albeit a moderated one, with the group issuing "prudent expectations for recovery in certain markets", which were weaker than previous years, as it makes an "even stronger focus on cost management" to deliver a "moderated short-term growth profile". Inchcape added that its medium to long-term outlook pointed to a return to higher levels of growth.

Chief executive Duncan Tait said: "Inchcape produced a strong set of results in FY 2023, with an excellent performance across all our regions. The business continues to deliver, with double-digit organic revenue growth, margin progression, EPS growth and high levels of cash generation.

"We maintained positive momentum across APAC, supported by acquisitions, while Europe & Africa performed strongly, despite muted demand. The Americas produced growth in many markets, supported by Derco's performance, and while some markets became increasingly challenging, we continued to take market share across the region."

As of 0945 GMT, Inchcape shares had sunk 9.55% to 615.50p.

Reporting by Iain Gilbert at Sharecast.com