International car dealer Inchcape plc reportedly said annual underlying earnings rose 27% as a result of higher sales in key markets in Hong Kong, Greece and Australia.
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According to Reuters, Inchcape said it planned to buy back £65 million pounds in shares, which would still leave it with enough financial muscle to expand in eastern Europe and possibly China.
“Even after this we will still have substantial financial capacity, which will enable us to deliver our strategy in 2005 and beyond,” chief executive Peter Johnson said in a statement cited by the news agency.
Inchcape reportedly said pre-tax profit before goodwill and exceptional items for the year to the end of December was £172 million, compared with £135.8 million previously.
The result compared to analysts’ consensus forecast of £168.5 million, according to Reuters Estimates.
The company raised its final dividend by 34.6% to 35 pence per share, the report said.
Inchcape reportedly said its performance in Hong Kong, Singapore and Greece was strong, where it retained market leadership with Toyota.
Reuters noted its UK business, however, has been battling with a more difficult market than the previous year, although UK retail margins improved in the period.
Reuters said Inchcape shares rose in December when it said 2004 profits would be slightly ahead of consensus forecasts, saying its performance in Hong Kong and Singapore beat expectations but its overall UK business was suffering.
The company also announced Johnson would succeed Sir John Egan as non-executive chairman in May 2006.
