BRUSSELS: Automotive distributor and retailer Inchcape third quarter revenues increased as it benefitted from the weak pound.
In a trading update for the quarter ended 30 September, the FTSE 250 company reported that revenue increased by 15.3% to £2.01bn, or 4.8% at constant currency, compared to last year. Like-for-like revenue was up 14.6% or 4.3% at constant currency and distribution revenue rose 19.5%, or 1.8% at constant currency. Retail revenue grew 12.5% or 7% at constant currency.
Chief executive Stefan Bomhard said the third quarter revenue performance was consistent with expectations for growth across regions and for a moderation from the rate of expansion seen over the first half of the year.
“Notwithstanding the adverse exchange rate between the Japanese yen and the Australian dollar and the difficult trading environment in our North Asia region, we continue to expect to deliver a resilient constant currency performance in 2016.”
Over three quarters of the company’s profits are denominated in currencies other than sterling and reported currency performance benefited from the weak pound.
The more sluggish environment anticipated, the transactional currency pressure in Australia and uncertainty on the timing of a market recovery in North Asia might negatively impact trading in 2017.
Bomhard added: “I am excited about the long-term growth potential of Inchcape as we deliver on our five ‘Ignite’ strategic objectives: leading in customer experience, delivering the full potential from all of our revenue streams, becoming the original equipment manufacturers’ partner of choice, leveraging our global scale and investing to accelerate growth. 2016 has seen the creation of these objectives and the start of our actions to realise our full potential.”
