Inchcape PLC on Thursday maintained annual guidance and reported sharp third-quarter revenue growth.
The London-based automobile distributor said third-quarter revenue surged 35% on a reported basis to £2.8 billion. It rose 10% organically.
‘Inchcape produced another strong performance in the third quarter. We delivered continued momentum across APAC, supported by acquisitions, while our business in Europe and Africa performed well. In the Americas, we are gaining share in key markets and the integration of Derco remains on track,’ Chief Executive Officer Duncan Tait said.
Derco, which operates in Latin America, was acquired in January for £1.3 billion. Post-acquisition cost synergies are expected to reach £40 million by the end of 2024.
Tait added: ‘Driven by the highly cash generative and capital-light characteristics of our business, Inchcape will continue to be a key consolidator in a highly fragmented market. As a result of our market leadership positions, diversified business and digital and data capabilities to support our OEM partners, we remain confident about the medium to long term outlook for the group.’
Looking ahead, Inchcape backed the annual guidance it delivered in July. It said it expected adjusted pretax profit to land at the top end of a consensus range at the time of £470 million to £506 million. It would represent growth of as much as 36% from £373 million.
Shares in the company rose 2.0% to 658.00 pence each in London on Thursday morning.
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