Car dealer Inchcape zooms past Pendragon

Global car seller Inchcape roared past its battered British rival Pendragon today with a booming sales update.

The car dealer, which has operations in 26 countries, said sales rose 14.6% to £2.3 billion for the three months to September, boosted by strong growth in Singapore and a recent acquisition in South America.

However, revenues were up by a meagre 1.8% in Europe, which accounts for nearly half of its sales, as falling demand for new cars and lower prices in the used market raises concerns about the health of Britain’s automotive industry.

Rival Pendragon, which is geared towards the UK domestic market, issued a profit warning this week which sent shares in the company down by almost a fifth.

Focusing on its distribution business, where Inchcape delivers cars in smaller markets for manufacturers, is paying off for the firm. Revenues in distribution rose 21% versus a 3.6% rise in its retail business.

Stefan Bomhard, Inchcape’s chief executive, said: “With distribution the core part of our business and the structurally attractive emerging markets growing in the mix, the group has been able to deliver a strong revenue perform-ance over the quarter despite continued margin pressures in some retail markets.” It expects to deliver “solid” results for the full financial year.