(Alliance News) - Inchcape PLC on Tuesday said it has decided that the ownership of its business interests in Russia is "no longer tenable," due to the ongoing conflict in Ukraine.
The London-based auto distributor and retailer stated that it initiated the process to transition its Russian business together with its original equipment manufacturing partners.
"We intend to do so in full compliance with international and local regulations and with the aim of safeguarding the continuing employment of our colleagues," the FTSE 250 firm said.
Inchcape continued that its Russian business is a retail-only operation and that it had already disposed of its St Petersburg operations in 2021. The remaining business contributed GBP750 million of revenue in 2021, around 10% of its group revenue, and roughly 5% of its operating profit. Historically, the Russian business has accounted for less than 3% of operating profit.
In 2021, Inchcape generated revenue of GBP7.64 billion and an operating profit of GBP226.9 million.
Shares were down 1.9% at 689.00 pence each on Tuesday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Inchcape (INCH)