(Sharecast News) - Shares in Inchcape surged on Thursday as the car dealer reiterated its annual outlook after a 5% rise in first-quarter revenues.
Sales for the first three months of the year came in at £2.3bn, with growth led by Europe and Africa, which outperformed as it unwound orders. Shares in the company were up almost 10% in London on the news.
The company recently said it was shifting its focus to distribution with the sale of its UK retail operations for £346m to Group Automotive of the US.
Inchcape said growth would return to higher levels over the medium to long term, with moderated growth expected in 2024. Key markets in the Americas were stabilising, while there was "strong momentum" in Asia-Pacific.
"Our positive start to 2024 reflects the underlying quality of our business and we have confidence in, and we have reiterated, our outlook for the year," said chief executive Duncan Tait.
"We recently announced an agreement to divest our UK Retail business. This transaction will complete our strategic transformation into a pureplay distribution business which is capital light, highly cash generative, higher margin and globally diversified."
He added: "With our global market leadership position, digital and data capabilities to support our OEM partners, our Distribution platform is well positioned for the future, and we remain confident about the medium to long-term outlook for the group."
Reporting by Frank Prenesti for Sharecast.com
Inchcape (INCH)