Inchcape trading in line with expectations

FTSE 250 car dealership Inchcape said on Thursday that it has made a good star to the year, in line with its expectations.

In a trading update for 1 January to 25 May, the company said group revenue rose 12.8% at actual currency to £2.47bn, or an 11.7% increase at constant currency.

Meanwhile, like-for-like revenue was up 12.4% at actual currency and 11.3% at constant currency.

Chief executive officer Stefan Bomhard said: “Our strong revenue performance in the first four months of the year is consistent with our expectation for continued momentum across our global portfolio of distribution and retail markets. We have seen positive revenue trends across five of our six geographical regions, as we have benefited from our unique local growth drivers.”

LFL revenue in the UK was up 10.7%, with strong revenue growth in vehicles and solid aftersales revenue growth.

South Asia and Emerging Markets saw LFL revenue growth of 46.7% and 24.1%, respectively.

It was a slightly more subdued picture in Europe, with LFL revenue up 3.6%, which was broadly in line with Inchcape’s expectations.

In North Asia, LFL revenue was down 18%, with consumer and corporate confidence weakened, impacting demand for new vehicles.

“We continue to expect to deliver a solid constant currency performance in 2016,” the company said, adding that it is well positioned to drive growth, with supportive drivers at the local level across its diversified portfolio of markets and revenue streams.