Inchcape PLC (LSE:INCH) has joined the growing throng of UK businesses exiting Russia.
In conjunction with its original equipment manufacturing (OEM) partners, it has initiated a process to change the ownership of its business in Russia in full compliance with international and local regulations and with the aim of safeguarding the jobs of employees.
Inchcape's car dealing business in Russia is a retail-only operation, the company said, and during 2021 it disposed of its St. Petersburg operations. The remaining business contributed £750mln of revenue in 2021, which is roughly 10% of group sales; over the last five years, Inchcape’s Russian operations have generated around 5% of the group's operating profit, although prior to the pandemic this percentage would have been less than 3%.
The FTSE 250 company’s shares have plunged from around 832p to 702.5p since Russia invaded Ukraine.