Inchcape starts 2015 in line with expectations but weak euro hits revenue

Inchcape said it has started this year in line with expectations thanks to solid demand in its vehicles and aftersales businesses and growth across its markets, as it reported a 0.9% drop in revenue in the four months to the end of April due to a weak euro.

The automotive retail and services company said that on a constant currency basis, group revenue was up 4.1% at £2.19bn.

In the UK, revenue growth was strong, with year-on-year margins improved in New Vehicles but pressure in Used Vehicles.

In Europe, the revenue performance was in line with the company’s expectations, with a benign New Car market in Belgium.

“We continue to expect the Group to deliver a robust underlying constant currency performance in 2015,” said the company. “Notwithstanding the competitive pressure on vehicle margins in some of our markets, we are well positioned to take advantage of the attractive growth prospects in the premium and luxury segments across our markets.”