6:05 am, January 14, 2009
INCHCAPE shares have fallen as speculation continues over whether the company will seek a fundraising share issue.
This has led the company to take the unusual step of releasing a statement regarding any potential equity raising.
In this, Inchcape admitted that it was considering a range of options to raise funds – ‘including a potential equity issue’.
This would help generate much-needed cashflow, which has plunged as the market for new cars has declined.
Car Dealer has already reported on Inchcape’s pre-Christmas statement, where it spoke of an ‘unprecedented decline’ in car sales – across the group.
In its latest statement, Inchcape says it expects trading conditions ‘to remain difficult.’
It is this that is leading the group to consider all finance options. The statement says Inchcape is ‘engaged with its finance providers to ensure that these arrangements are appropriate for a downturn in trading.’
Importantly, though, ‘the Group remains in compliance with its financing arrangements’.
A further statement will be made in due course, said Inchcape, whose shares have declined this week: Car Dealer will bring you all the news as it happens…
