Inchcape PLC (LSE:INCH), the FTSE 250 global automotive distributor, saw its shares fall 8% to 797p on Tuesday as investors focused on continuing challenges in its Asia Pacific operations that are expected to hold back growth in the year ahead.
The company guided for organic volume growth towards the lower end of its 3% to 5% target range in 2026, with performance weighted towards the second half of the year, as management continues to take action to address weakness in the region.
The cautious outlook overshadowed an otherwise solid set of full-year results, with adjusted profit before tax of £443 million on revenues of £9.1 billion, up 1% on an organic basis, and earnings per share growth of 13%.
Operating margins held steady at 6.2%, while free cash flow conversion came in at 104% of adjusted profit after tax.
Inchcape completed a £250 million share buyback on 2 March, having repurchased around 9% of its own equity, and immediately launched a fresh £175 million programme for 2026.
The full-year dividend rose 13% to 32.3p per share.
Chief executive Duncan Tait said the company's diversified business model had delivered results in line with its medium-term targets, and pointed to a healthy pipeline of bolt-on acquisitions and 10 new distribution contract wins during the year as evidence of continued strategic progress.