The sale will result in an exceptional non-cash loss before tax of about 240 million pounds ($300 million), of which 140 million pounds is due to accumulated foreign exchange translation losses, Inchcape said. The company said the sale of the Russian business — which consists of retail-only operations, mainly for BMW Group, Jaguar Land Rover, Toyota and Volvo in Moscow — for 76 million euros ($79.92 million) is expected to close next month.
The FTSE 100 tobacco group, which makes Gauloises and West cigarettes, also saw losses narrow in its e-cigarettes business.
A global chip shortage spurred by a pandemic-driven trend towards digitisation has been pounding companies in the auto industry, including UK car dealers already suffering following Britain's decision to leave the European Union. "Whilst the widely reported supply issues are not expected to improve until well into 2022, we are confident that margins will remain robust through this period, mitigating the likely impact on our topline," Chief Executive Officer Duncan Tait said in a statement. Inchcape, which sells new and used cars including premium brands such as BMW, Audi and Mercedes-Benz, posted a third-quarter revenue of 1.9 billion pounds ($2.61 billion), up 10% on an organic basis compared with a year earlier, but still 2% down compared with 2019.