(Sharecast News) - Inchcape reported a strong start to the year on Thursday, as strong demand continued to outpace supply.
Updating on first quarter trading, the car dealership said group revenue was £1.8bn in the three months to 31 March, up 6% year-on-year, or by 13% on a like-for-like basis.
The group said growth had been driven by strong consumer demand alongside "price mix tailwinds against the backdrop of continuing supply shortages", in both new and used vehicles.
New vehicle order books in a number of markets were at "record" levels, it added.
As a result, Inchcape now expects 2022 pre-tax profits to grow by 25% to "at least" £300m. "So far in 2022, we have experienced a continuation of the trends from last year, with demand ahead of supply and high margins," it noted. "We expect this trend will continue for at least the remained of the year."
Inchcape also confirmed it had sold its Russian business to the local management, for £63m, paid over a period of five years. The deal is expected to close next month.
Duncan Tait, chief executive, said: "Inchcape has made a great start to 2022, with both distribution and retail delivering strong revenue growth and margins.
"Inchcape has a really exciting future and is well positioned to deliver sustainable long-term value for all our stake holders."
Inchcape (INCH)