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Inchcape buyer Group 1 Automotive announces £600m profit for Q1

  • Group 1 Automotive publishes financial results for first three months of the year
  • Firm made gross profit of almost £600m against revenues of £3.6bn
  • UK market enjoyed strong start to the year despite slight dip in profit

Time 2:21 pm, April 30, 2024

Inchape’s buyer Group 1 Automotive has announced global profits of almost £600m as its takeover of Inchcape edges closer.

Car Dealer reported earlier this month that the US outfit had agreed a £346m deal to buy all of Inchcape’s UK retail operations.

The takeover is now awaiting regulatory approval from the Financial Conduct Authority but Group 1 have not let negotiations impact performance.

In a set of accounts recently published, the firm posted a global gross profit of $742.6m (£596m) for the first three months of 2024 – a 2% rise on the same period last year.

Revenues worldwide also rose by an impressive 8.2% to an eye watering $4.5bn (£3.6bn).

Its UK operations, which include BMW, Mercedes, Audi, VW, Seat, Skoda, Jaguar Land Rover, Kia, Toyota and Ford new car sites as well as a handful of used car centres in the UK, contributed $821.8m (£657m) of revenue compared to $784.7m (£626.2m) in Q1 2023.

Gross profit generated from its UK operations in the three month period was $102.1m (£81.5m) – a slight dip on last year’s $109.1 (£87.1m)

On average, in the UK, Group 1 made gross profit of $2,760 (£2,203) on every new car it sold – down 5% on last year.

Used car profit also fell 1.5% – down from $1,700 (£1,357) per car in the first quarter in 2023 to $1,550 (£1,237) this year.

The accounts also showed that Group 1 sold 8,961 new cars in the UK in Q1, compared to 14,038 used vehicles.

The UK accounted for 20.2% of all new vehicle sales across the group – with the remaining 79.8% of sales coming in the US.

Daryl Kenningham, Group 1’s president and CEO, said: ‘Our U.K. team rebounded nicely from the challenging fourth quarter of 2023, producing record quarterly revenues from parts and service and new vehicles, as well as increasing used vehicle sales volumes over 19% sequentially.

‘We saw some of the benefits of our UK cost reduction efforts in the first quarter of 2024; however, we expect to realise the full benefit of our cost reduction efforts in the second quarter and beyond.

‘We believe the UK. business is well positioned and look forward to the expansion of our UK. operations with the pending acquisition of Inchcape’s U.K. retail automotive business planned for Q3 2024.’

You can read why car dealerships this side of the Atlantic are proving so attractive to American investors here.

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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