Group 1 reports strong financial results amid ‘focus’ on Inchcape acquisition

Group 1 has reported revenues of £3.6 billion and profit of almost £600 million in Q2.

The dealer Group, which operates 206 dealerships across the UK and the US, has been focus on expanding its geographic footprint.

Daryl Kenningham, Group 1’s President and CEO, said: “Our U.K. team remains focused on the acquisition of Inchcape’s U.K. retail automotive business planned for Q3 2024, and we look forward to the successful completion of the transaction which will further strengthen our U.K. presence through the addition of quality assets with an expanded geographic footprint.”

The integration of new acquisitions into existing operations has strengthened Group 1.

At the start of the month, the company acquired four Mercedes-Benz dealerships located in Hertfordshire. This acquisition is expected to generate around £81.2 million in annual revenues as new car sales are recorded as net revenue under the agency model.

Year-to-date, Group 1’s acquisitions total expected annual revenues of around £851 million.

Last month, a cybersecurity incident experienced by CDK Global in the US caused service outages on dealer’s systems.

Despite temporary disruption to the company’s business applications and processes in the US that relied on CDK’s systems, all of Group 1’s US dealerships continued to conduct business using alternative processes.

Group 1’s UK dealers do not use CDK systems so they were not impacted by the outage.

Go to Source