Inchcape reports soaring revenue and profit
Car dealership group Inchcape has reported a 30 per cent rise in turnover and a near 15-fold increase in its pre-tax profits after showing strong signs of recovery from the pandemic in the first half of 2021.
The business reported group revenues of £3.9 billion and pre-tax profits of £143 million in its trading period to June 30.
It now expects its full-year pre-tax profits to be in excess of £260 million.
The group, which has Volkswagen sites in Shrewsbury and Telford, said that the UK’s retail division had seen revenues decline by two per cent as Covid-19 lockdown continued to hamper trading in quarter one, but added that quarter two had delivered a “solid” performance, with revenues up by 139 per cent on an organic basis.
Overall, Inchape’s retail performance in the UK and Europe delivered revenue growth of 28 per cent year-on-year, to £1.57 billion, as operating profit was turned around from an £18 million loss to a £38.6 million profit.
The group’s half-year financial results statement said: “Despite UK showrooms being forced to close throughout the first quarter of the year, a combination of solid demand for new and used vehicles, the operational improvements, and our strict cost measures enabled us to deliver an excellent result for the period."
