(Sharecast News) - Car dealership Inchcape posted a rise in first-half profit and revenue on Thursday as it announced the acquisition of Latin American automotive distributor Derco for £1.3bn.
In the six months to 30 June, adjusted pre-tax profit was up 53% at £184m on revenue of £3.9bn, up 8% on the same period a year ago. The dividend per share was boosted 17% to 7.5p.
Inchcape said its performance was driven by a combination of robust consumer demand and price-mix tailwinds against the backdrop of new vehicle supply shortages, which is gradually improving. It said the performance of used vehicles continued to be robust, and its aftermarket business performed well.
The company also announced the acquisition of family-owned Derco, which is the largest independent distributor by volume in Latin America.
Inchcape said Derco has significant presence across the four attractive markets of Chile, Peru, Colombia and Bolivia, and has long-standing partnerships with global automotive brands such as Suzuki, Mazda, Chevrolet, Changan, JAC, Renault, Great Wall and Haval.
Chief executive Duncan Tait said the deal "provides a step-change in the scale of our distribution business and increases our exposure to the highly attractive, fast growth region of Latin America".
"With a clear strategy, driven by our ambition to be both better and bigger, Inchcape is well positioned to capitalise on further opportunities for organic growth and market consolidation, and I am confident we will continue to deliver sustainable long-term value for all our stakeholders," he added.
Inchcape (INCH)