Inchcape shares up as currency movements push profit up 12pc

marshall motors

Car retailer Inchcape saw profits jump 12 percent over the 2016 financial year, sending shares up nearly 3 percent.

The company updated markets on Wednesday with earnings per share growth of 14 percent, with profit pushing up to £349.4 million on the back of favourable currency movements.

Revenue hit £7.8 billion, up 14.7 percent from the previous year. Reported pre-tax profit rose 2 percent to £267.8 million, with reported operating profit edging up to £277.5 million from £275.2 million.

The 2016 reported profit included an exceptional charge of £81.6 million, including a £8.8 million cash exceptional charge in relation to the acquisitions of Subaru and Hino acquisition in South America, as well as entry into the Thai market with Jaguar Land Rover.

Advertisement

Stefan Bomhard, the group’s Chief Executive, said:

“Looking forward, we are well positioned to continue to leverage our global scale, drive growth from the installed base of vehicles and benefit from our positions across a unique spread of markets.

“Our overall 2017 performance will benefit from the recent accretive South American acquisition and, if Sterling remains around current levels, from the translation impact arising from the substantial proportion of our profits being generated in other currencies.”

Inchcape (LON:INCH) are a multinational car retailer operating across 26 countries, and part of the FTSE 250 index. Shares in the company rose nearly 3 percent immediately after the statement, and are now trading up 1.20 percent at 759.50 (0930GMT).