Inchcape jacks up the dividend

CAR dealer Inchcape has jacked up the annual dividend by more than a fifth after strong sales of upmarket motors in Britain and taxis in Hong Kong. The slimmed-down former conglomerate reported a 32% rise in underlying profits to £97m for 2001.

Profits leapt nearly twentyfold in the UK as low interest rates and the fall in car prices lured buyers. In Hong Kong, the sale of Toyota-made taxis increased by 130% after new rules on the use of liquefied petroleum gas brought a one-off surge in turnover.

Profits before tax were down to £61m from £73m last time after a £36m write-off of goodwill on disposals. The dividend is lifted 22% to 27p a share.