Companies: INCH   

Shares in the refocused car dealership gained 16.5p to 515p in early trading as analysts upgraded forecasts on a strong recovery in interim profits to 30 June. Pre-tax profits jumped from £29.9m to £43.6m on sales of £1,755.4m, reflecting a strong recovery in the UK market following last year's enquiry into new car prices. Within the specialist retail division, directors said the group's partnerships with the likes of BMW, Toyota, Lexus, Jaguar and Land Rover drove outstanding earnings growth. The board also admitted that a number of potential acquisition targets had been identified which it hopes to conclude in the near future. Inchcape also enjoyed a solid contribution from the Far East prompted by a buoyant Hong Kong taxi market. The group finished off the half-year with £85m net cash and plans to step up its UK investment programme by growing its UK dealership arm and business services division. For the current year to December, Old Mutual Securities upgraded its profit forecast from £87m to £94m, which would give an earnings per share figure of 73.5p, putting it on a lowly p/e of 7 at 515p.