Inchcape plc (LON:INCH) has provided the following trading update.
In our Q3 update of 5 November 2020, we reported that the Group was on course to deliver a performance significantly ahead of market expectations. At the same time we were mindful of further lockdown restrictions impacting a number of the markets in which we operate, and felt it was prudent not to give guidance for FY 2020.
It is now clear that the restrictions have had less of an impact on our performance than might have been expected with resilient demand for both Vehicles and Aftersales services. This was supported by our ability to continue delivering vehicles, provide a click-and-collect service and to continue to perform Aftersales services in the affected markets.
In light of this better than expected performance in November, and the limited restrictions in place as of today, we expect 2020 profit before tax (pre exceptionals) will be materially ahead of the published market consensus (£108m).
Additionally, supported by our highly cash generative business model, our overall financial position has strengthened further and we expect our year end net cash position will be substantially above the prior year.
Against the backdrop of a better trading performance and strong cash generation, we will consider resuming dividend payments in accordance with the performance of the business at the year end.
Notwithstanding our FY 2020 performance, we continue to operate in an uncertain economic environment as a result of the Covid-19 pandemic.
Inchcape plc full year results will be published on 25 February 2021.