Pagegroup (PAGE)

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FTSE 250

458.80p
   
  • Change Today:
      1.40p
  • 52 Week High: 680.50
  • 52 Week Low: 432.20
  • Currency: UK Pounds
  • Shares Issued: 328.62m
  • Volume: 369,703
  • Market Cap: £1,507.70m

Inchcape buys Barbados-based ITC and Simpson Motors

By Michele Maatouk

Date: Tuesday 07 Dec 2021

LONDON (ShareCast) - (Sharecast News) - FTSE 250 car dealership Inchcape has agreed to buy Interamericana Trading Corporation (ITC) and Simpson Motors from the Simpson Group for an undisclosed sum, expanding its footprint with entry into the Caribbean.
ITC is an independent distributor in the Caribbean region, with distribution to over 30 territories - including Jamaica, Guadeloupe, Trinidad and Tobago and Martinique.

Simpson Motors is the leading automotive retailer in Barbados. It operates a vertically integrated business from one large site on the island, distributing passenger vehicles for Suzuki, Mercedes-Benz, Chrysler and Subaru, as well as commercial vehicles for Isuzu, Fuso, JBC, Bobcat and John Deere.

Inchcape said the deal will strengthen its geographic reach with Suzuki, Mercedes-Benz and Subaru, and broaden its OEM relationships, with the addition of Chrysler to its list of brand partners.

The businesses are expected to add around £120m of annualised revenue and will be accretive to group margins. Completion of the acquisition is expected in the first half of next year.

Chief executive officer Duncan Tait said: "This acquisition is a good example of our Accelerate strategy in action; leveraging our global distribution leadership to expand into new markets with both existing and new OEM partners.

"As we detailed at our Capital Markets Day, automotive distribution is highly fragmented, and there is a huge landscape of opportunity for Inchcape to drive consolidation. The combination of our leading global position, our digital and data capabilities, and our strong financial position, means we are well-placed to accelerate our growth ambition."

Numis said: "While a transaction price hasn't been announced, assuming it was in-line with historic multiples (c.7x EBITDA), we would estimate a price of circa £50-55m well within the group's funding capabilities considering Dec-21e net cash position of circa £440m.

"While only a mid-small sized deal, following a relatively quiet period of deals during periods of lockdown it's encouraging to see deal momentum return, supporting management rhetoric that the EV and digital shift is accelerating consolidation in the industry, with M&A delivering a higher return on capital (potentially double) than a typical buyback."

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Pagegroup Market Data

Currency UK Pounds
Share Price 458.80p
Change Today 1.40p
% Change 0.31 %
52 Week High 680.50
52 Week Low 432.20
Volume 369,703
Shares Issued 328.62m
Market Cap £1,507.70m

Pagegroup Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
74.98% above the market average74.98% above the market average74.98% above the market average74.98% above the market average74.98% above the market average
62.75% above the sector average62.75% above the sector average62.75% above the sector average62.75% above the sector average62.75% above the sector average
Price Trend
35% below the market average35% below the market average35% below the market average35% below the market average35% below the market average
27.43% below the sector average27.43% below the sector average27.43% below the sector average27.43% below the sector average27.43% below the sector average
Income
87.41% above the market average87.41% above the market average87.41% above the market average87.41% above the market average87.41% above the market average
97.22% above the sector average97.22% above the sector average97.22% above the sector average97.22% above the sector average97.22% above the sector average
Growth
65.84% above the market average65.84% above the market average65.84% above the market average65.84% above the market average65.84% above the market average
66.04% above the sector average66.04% above the sector average66.04% above the sector average66.04% above the sector average66.04% above the sector average

What The Brokers Say

Strong Buy 5
Buy 0
Neutral 5
Sell 0
Strong Sell 2
Total 12
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Pagegroup Dividends

  Latest Previous
  Final Special
Ex-Div 19-May-22 02-Sep-21
Paid 17-Jun-22 13-Oct-21
Amount 10.30p 26.71p

Trades for 27-May-2022

Time Volume / Share Price
16:45 542 @ 458.80p
16:45 542 @ 458.80p
16:35 155,813 @ 458.80p
16:29 250 @ 459.07p
16:29 55 @ 458.80p

Pagegroup Key Personnel

CEO Stephen Ingham
CFO Kelvin Stagg

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