(Alliance News) - Inchcape PLC shares jumped on Thursday, after it reported higher quarterly revenue and looks ahead to future as a pureplay distribution company.
Shares in the London-based automotive distributor were up 7.7% to 774.50 pence each in London on Thursday morning.
Inchcape said revenue rose 5% on a reported basis to GBP2.3 billion in the first quarter of 2024. On an organic basis, the figure edged up 6% and at constant FX rates was 11% higher.
It explained that organic and acquired growth, was partly offset by translational currency headwinds.
The company noted that during the year so far it has become a pureplay distribution business.
In April, Inchcape announced a deal to sell its UK retail operations of GBP346 million, following a review of strategic options it kicked off earlier this year. It sold the assets to New York-listed automotive retailer Group 1 Automotive.
It also announced plans to return GBP100 million of the disposal proceeds to shareholders through a buyback.
"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," 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."
By Sophie Rose, Alliance News senior reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Inchcape (INCH)