Inchcape interim profits rise; FY seen at top end of consensus range

Car dealership Inchcape posted a rise in interim profits and revenue on Thursday and said full-year results are set to be towards the top end of the range of market consensus.

Market expectations for 2023 adjusted pre-tax profit are between £470m and £506m.

For the first half, Inchcape said revenue rose 45% to £5.6bn, supported by the contribution from Derco, which it acquired in January. Adjusted pre-tax profit was 35% higher at £249m, with a strong operating profit performance more than offsetting higher interest costs.

Chief executive Duncan Tait said: "Inchcape has produced another excellent performance during the first half of 2023, driven by growth from acquisitions and by consistently strong organic growth.

"In particular, the acquisition of Derco has transformed our market position in the Americas and is already having a positive impact on the group. This first half performance highlights Inchcape's continued commercial momentum, supported by our global scale and long-standing OEM relationships, underpinned by a highly differentiated technology platform. Our business in the Americas is performing well, while we are producing strong momentum across the APAC region. In Europe, our business also performed well, despite challenges in certain markets."