LONDON (ShareCast) - (Sharecast News) - Inchcape took the wraps off its new strategy at its capital markets day on Wednesday, and updated the market on its medium-term outlook under that strategy.
The FTSE 250 company said the new strategy, dubbed 'Accelerate', featured two growth pillars, being 'Distribution Excellence' and 'Vehicle Lifecycle Services'.

Looking at its medium-term financial outlook, in 'Distribution Excellence' it said it was expecting a compound annual growth rate for profits in the mid-to-high single digits.

In 'Vehicle Lifecycle Services', meanwhile, Inchcape said it was pencilling in at least £50m of incremental profit.

"Our ambition is to leverage our global leading position, and become the undisputed distributor of choice for original equipment manufacturers (OEMs)," said group chief executive officer Duncan Tait.

"With technology and data analytics at the heart of our differentiated distribution platform, we see significant opportunities to grow in both existing and new markets, as well as to further strengthen and broaden our OEM relationships.

"Capturing more of the profit-pool of a vehicle's life also presents a considerable opportunity for us."

That, Tait said, was an area that was currently underserved by Inchcape across all 36 of its markets.

"Leveraging our core competencies and people capabilities, combined with our investment in technology, we aim to grow our share of this highly fragmented market.

"The group is well-positioned to deliver significant value through organic growth, market consolidation and cash returns."

At 0833 GMT, shares in Inchcape were up 0.83% at 848.5p.

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