TOP NEWS: Inchcape profit to beat forecasts as car market bounces

(Alliance News) - Inchcape PLC on Friday said its performance in recent weeks has topped expectations, with the car dealership chain seeing decent demand.

Shares in the company were 4.6% higher at 797.50 pence each in London on Friday morning

Since its first quarter update in late-April, Inchcape has seen "encouraging trends", the automotive distribution, retail and services company noted.

"The group's performance to date has exceeded our expectations. During the period we have seen our businesses benefit both from an uptick in demand and margin resilience," it said.

Inchcape expects annual pretax profit, before exceptional items, to top consensus forecasts of GBP216 million, so at least a 68% hike from GBP128.9 million in 2020.

However, the company cautioned on an uncertain second half, due to a semiconductor shortage and the Covid-19 pandemic.

Inchcape plans to publish its first half results on July 29.

The company operates franchised dealerships of car brands such as Audi, Jaguar, BMW, Mercedes-Benz and Volkswagen.

By Eric Cunha; ericcunha@alliancenews.com

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