Inchcape FY profit to beat market expectations

Car dealership Inchcape said on Thursday that full-year pre-tax profit was set to beat market expectations as it has continued to trade strongly and ahead of its expectations since its first-quarter update at the end of April.

The better-than-expected performance was driven mainly by the distribution business, where it has delivered continued quarterly improvement in new vehicle volumes and an operating margin above the second half of 2021.

"We also have greater confidence in relation to our second half performance based on the strength of order books in our markets and an improved outlook for supply," the company said.

As a result, it now expects to deliver FY22 pre-tax profit from continuing operations of between £350m and £370m, ahead of market consensus of £301m.

At 0815 BST, the shares were up 5% at 714.50p.