Inchcape lifts guidance, considers reinstating dividends

Automotive retailer Inchcape said full-year profits would be “materially ahead” of expectations and was considering reinstating its dividend after a better-than-expected performance in November.

The company on Thursday said it expected pre-tax profit, excluding exceptionals, would be materially ahead of market consensus of £108m as the impact of the second UK Covid-19 lockdown was not as bad as first feared.

“It is now clear that the restrictions have had less of an impact on our performance than might have been expected with resilient demand for both vehicles and aftersales services,” the company said, adding that it would consider resuming dividend payments in accordance with the performance of the business at the year-end.

“This was supported by our ability to continue delivering vehicles, provide a click-and-collect service and to continue to perform aftersales services in the affected markets.”