Inchcape quarterly revenues remain flat, margin pressures remain

Global car retailer Inchcape's sales were curtailed by currency swings in the third quarter, while pressures persisted on profit margins.

Revenues for the three months ended 30 September came to £2.28bn, flat year-on-year at actual currency and up 2% at constant currency. The group operates in 32 countries around the world.

Distribution revenues increased 1%, while retail revenues decreased 1%.

The FTSE 250 constituent also noted that its acquisition of Grupo Rudelman, an automotive distribution outfit in Central America, contributed 2% to the group's overall revenue growth and was "integrating well".

In retail, Inchcape said the easing of margin pressure in the UK and Australia had been "slower than we had anticipated", with market dynamics remaining similar to those seen in the first half.

Chief executive Stefan Bomhard, said: "Given trading over the quarter we now expect a resilient constant currency profit performance for 2018. We anticipate some easing of the current market pressures in 2019."

"We remain confident and excited about the medium-term growth prospects for the business."

As of 0845 GMT, Inchcape shares had edged forward 2.86% to 575p.