Inchcape Upgrades 2021 Pre-tax Profit Forecast

Inchcape has upgraded its pre-tax profit forecast for 2021 to ‘at least £290m’, thanks to a strong quarterly performance.

A trading update by Inchcape for the three months to September, shows group revenue went up by 10% to £1.9bn on the same period last year. It was, however, 2% down on pre-pandemic 2019.

The update also said that supply constraints were expected to carry on until ‘well into 2022’.

Group chief executive Duncan Tait said: ‘The group’s Q3 results were stronger than expected. The better performance was broad based, with all regions supporting the results in the quarter.

‘The pandemic continues to cause uncertainty across the globe, although with largely localised restrictions. However, its had a relatively small impact of the group in the period.

‘While supply shortages have had some impact on our topline performance, we have benefited from higher vehicle gross margins.’

Inchcape signed a global strategic partnership with Geely during the quarter, and Tait said they were excited about its forthcoming launch.

He added: ‘Looking ahead, the group’s strong performance to date, supported by robust margins, will underpin an expected profit before tax for FY21 of at least £290m.

‘Whilst supply issues are not expected to improve until well into 2022, we are confident that margins will remain robust.

‘The long-term growth prospects of the group are attractive and exciting.

‘We will achieve this by strengthening our OEM relationships and capturing the lifetime value of both customers and vehicles.’

Retail performance in the UK was said to be ‘relatively resilient against the backdrop of supply constraints’.