Inchcape shares tank despite higher FY profits, upbeat outlook
Shares in Inchcape fell sharply on Thursday, despite the automotive distributor reporting a rise in annual earnings driven by growth in new and used vehicle sales and higher prices.
Adjusted pre-tax profit rose 50% to £373m, while revenue grew 8% to £8.1bn. The total dividend was lifted 28% to 28.8p a share. However, the shares closed almost 12% lower in London trade.
“While we are mindful of the changeable economic environment, the strength of our business model and diversification benefits of our global operations are expected to support the group's performance in 2023, with trading to date in line with our expectations,” the company said on Thursday.
“We anticipate that new vehicle supply will continue to improve throughout 2023, and support a normalisation of order books. In 2023 we expect to make strategic, operational and financial progress, underpinned by the integration of Derco.”
Reporting by Frank Prenesti for Sharecast.com