Global automotive retailer Inchcape, has released its Trading Update covering the four months ended 30 April 2017. The group recorded retail revenue growth of 3.4% at constant currency during the period.
The group’s statement also announced Estonian automotive Distribution operations, focused on BMW Group, from United Motors AS. The deal will see Inchcape become the exclusive Distributor of BMW Group’s vehicles in Estonia.
Inchcape CEO, Stefan Bomhard, commented:“Our performance in the first four months of 2017 is consistent with our expectation for growth across the majority of our markets. Our Emerging Markets Distribution operations performed robustly, and benefitted from the strategic South American acquisition made at the end of 2016.
“The 2017 Distribution additions of PSA in Australia and BMW in Estonia reflect our Ignite strategy in action, working closely with OEMs to target exciting growth opportunities as we seek to be the OEM’s partner of choice.”
The statement bundles Inchcape’s UK business performance with that its European activities, recording a 6.1% growth in revenue for the UK and Europe, and acknowledging a “continuation of New Car margin pressure” in the UK market.
The group’s global reach means that currency fluctuations play a large role, however sterling’s weakness has been to Inchcape’s advantage as the statement explains: “With over three quarters of profits denominated in currencies other than Sterling, our reported actual currency performance continues to benefit from Sterling’s weakness and acts as an offset to the transactional currency headwind in Australia.”
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