Sterling's weakness flatters Inchcape
International car dealer Inchcape said the anticipated tail off at its Singapore business contributed to a decline in like-for-like sales in the first quarter.
Total sales in sterling terms rose 6.5% in the first quarter of 2008 but were little changed from a year earlier in constant currency terms.
Sales from continuing operations rose 7.2% at constant exchange rates.
Like-for-like sales eased 0.3% in constant currency terms, but were up 3.3% excluding Singapore.
Business levels in Singapore have been lower due to the declining new car market and the “run out of the Corolla Altis,” the company said.
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The UK retail business outperformed the UK car dealer market, posting 3.5% like-for-like sales growth.
Headline pre-tax profit in sterling terms rose 5.7% compared to the first quarter of last year, while at constant exchange rates it was little changed.
The group said the lack of growth in sales was expected given the level of investment in the launch of new models and the run out of old models in the first quarter.
Inchcape said it expected its acquisition of major Russian car dealer Musa Motors to complete in July 2008. The group is looking for £1bn in revenues from Russia in 2009.
“Our expectations for the full year, at constant currency, remain unchanged and we continue to look forward to the remainder of 2008 with confidence,” the company said.
