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Inchcape PLC on Thursday said it had recorded strong revenue growth in the third quarter and expected to meet or exceed its profit guidance for the full year.
In a trading update on the three months to September 30, Inchcape said revenue was up 24% on a reported basis to £2.1 billion, and up 16% on an organic basis. These figures included adjustments for the disposal of Inchcape's Russian business in the second quarter, which was then removed from current and comparative periods.
Inchcape said that its organic growth was led by its Distribution division which increased its revenue by 18%. This was supported by strong growth in both new and used vehicles.
The Retail division was up 11%. Although new vehicle supply remained constrained the company saw growth in used vehicles. The company said pricing remained "robust", enabling it to deliver revenue growth in vehicle sales.
The London-based auto distribution and retailer said it expects pretax profit from continuing operations to be towards the top end, or slightly above, its previously guided range of between £350 and £370 million. For 2021, it reported profit before tax and exceptional items of £296 million.
It said that its Derco acquisition was progressing well with completion expected at the end of 2022 or in the first quarter of 2023.
Chief Executive Officer Duncan Tait said: "The group delivered another strong performance in Q3. We achieved double-digit organic growth in both Distribution, underpinned by higher vehicle volumes, and in Retail. We continue to see robust demand for vehicles, with record order books across many of our markets, and expect a gradual improvement in vehicle supply.
"The combination of the strength of Inchcape's business model and geographically diverse footprint means we are well placed to navigate the current macroeconomic climate."
Shares in Inchcape were trading 2.3% higher at 742.00 pence each in London on Thursday morning.
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