Profits, sales motor ahead at Inchchape

The automotive distributor said revenues in 2024 fell 1% to £9.3bn but rose 4% once the negative impact of foreign exchange rates was stripped out.

Adjusted operating profits from continuing operators rose 2% on a constant currency basis, to £548m.

On a reported basis, earnings per share jumped 16% to 66.4p, while pre-tax profits rose 10% to £414m.

Duncan Tait, chief executive, said the business had delivered "strategic, operational and financial progress" during the year, with both revenues and profits growing in line with expectations.

He continued: "This resilient performance reflects our diversified and scaled global market leadership position, our long-standing and valuable OEM (original equipment manufacturer) relationships, our high-performance culture and our differentiated capabilities."

During the year, Inchcape completed a strategic overhaul of the business, which saw it sell various non-core retail assets, raising £391m. It also secured a number of distribution contracts.

Looking ahead, Tait said: "We expect to continue growing the business and, by the end of 2030, we anticipate generating £2.5bn in free cash flow."

For the current year, Inchcape expects profits and revenues to strengthen, though it noted growth would be skewered to the second half due to product cycles and the ramp up of new contracts.

It also forecast higher EPS growth, driven by higher profits and share buybacks.

The £250m share buyback launched on Tuesday is expected to conclude within the next 12 months and follows a £150m share buyback which completed in the current quarter.

Tait said the buybacks reflected "our cash-generative business model [and] strong balance sheet, underlining our confidence in the group’s long-term prospects".

Headquartered in London, Inchcape operates worldwide and employs around 18,000 people.

As at 0915 GMT, shares in the FTSE 250 firm were up 3% at 701.5p.