UK car dealer Inchcape Plc posted an expected rise in first-half profit on Thursday after UK, Australian, Greek and Belgian demand offset a slowdown in the Hong Kong and Singapore car markets.
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Pre-exceptional pre-tax profit at Inchcape, whose diverse sales and distribution franchises include Ferrari, Toyota, Subaru and BMW, rose 11% to GBP112m ($US210m) in the six months to June 30 on revenue up 8% to GBP2.44bn, Reuters reported.
The firm is paying an interim dividend of 5 pence per share, up 56.3%, and said it was positioned for further growth despite challenging market conditions – particularly in Hong Kong and Singapore where the market slowed and people waited for new models.
Chief executive Andre Lacroix reportedly said conditions in Hong Kong and Singapore were not expected to show any real improvement but refuted suggestions the firm was about to lose the rights to import and distribute Toyotas in the two countries.
“There is no indication that we would lose our distribution rights so I don’t know where this information is coming from,” he told Reuters.
Lacroix added that the company was looking to counter the slowdown in Asia with a full move into the growing Russian car market next year, the news agency added.
“We have expansion opportunities in the UK and Australia and to a lesser degree Greece and Belgium but it’s important to broaden our portfolio of core countries from about six to 10 in five years.
“The Russian car market is very, very interesting, it is growing really fast, especially the foreign car segment which is up 55% in the first half and this a very healthy market where we want to invest,” he told the news agency.
