Pagegroup (PAGE)

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FTSE 250

448.60p
   
  • Change Today:
      3.60p
  • 52 Week High: 495.00
  • 52 Week Low: 365.00
  • Currency: UK Pounds
  • Shares Issued: 328.62m
  • Volume: 774,642
  • Market Cap: £1,474.18m

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 448.60p
Change Today 3.60p
% Change 0.81 %
52 Week High 495.00
52 Week Low 365.00
Volume 774,642
Shares Issued 328.62m
Market Cap £1,474.18m

Pagegroup Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
22.62% below the market average22.62% below the market average22.62% below the market average22.62% below the market average22.62% below the market average
26.67% below the sector average26.67% below the sector average26.67% below the sector average26.67% below the sector average26.67% below the sector average
Price Trend
31.77% above the market average31.77% above the market average31.77% above the market average31.77% above the market average31.77% above the market average
14.85% above the sector average14.85% above the sector average14.85% above the sector average14.85% above the sector average14.85% above the sector average
Income
65.70% above the market average65.70% above the market average65.70% above the market average65.70% above the market average65.70% above the market average
47.69% above the sector average47.69% above the sector average47.69% above the sector average47.69% above the sector average47.69% above the sector average
Growth
71.08% below the market average71.08% below the market average71.08% below the market average71.08% below the market average71.08% below the market average
82% below the sector average82% below the sector average82% below the sector average82% below the sector average82% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 9
Sell 0
Strong Sell 0
Total 11
neutral
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 16-May-24 31-Aug-23
Paid 21-Jun-24 13-Oct-23
Amount 11.24p 15.87p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 218,326 @ 448.60p
16:35 417 @ 448.60p
16:35 1,122 @ 448.60p
16:35 306 @ 448.60p
16:35 125 @ 448.60p

Pagegroup Key Personnel

CFO Kelvin Stagg

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