Inchcape (LON:INCH) is a unique, high-quality business with a consistent record over many years. The strategy announced this week by the new CEO points positively to the future, building on many of the group’s existing qualities. Downstream operations in the distribution and retail activities limit the likely impact of any global recession. The shares offer strong medium-term attractions.
Results ahead of expectations
Inchcape figures for 2015 show underlying pre-tax profits up by 9.2% (10.5% CCR) to £312m, slightly ahead of consensus estimates. Geographically, there were improvements in North Asia (Hong Kong) and emerging markets (except Russia), which more than compensated for reversals in the UK, continental Europe and South Asia (largely Singapore). All of the progress came in Distribution, with Retail slipping back modestly. There will, again, be mixed performances across the group network in 2016, but consensus estimates indicate further steady progress.
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