Economy

Inchcape's finance chief resigns after a 'lapse of judgement' at event

Inchcape car dealer finance chief Gijsbert de Zoeten resigns after ‘lapse of judgment’ at event

  • The FTSE 250 firm did not go into massive details about De Zoeten’s departure
  • He added that his resignation was not related to the company’s financial results.
  • Founded in Kolkata in 1847, Inchcape sells cars in more than 40 markets

Departure: Inchcape CFO Gijsbert de Zoeten (pictured) resigned following a ‘lapse of judgement’ at a recent event

Inchcape’s finance chief resigned after a ‘lapse of judgement’ at a recent event.

Gijsbert de Zoeten voluntarily stepped down as chief financial officer after just over three years at one of Britain’s biggest car dealership chains, which celebrates its 175th anniversary this year.

He previously held the same position at Dutch car fleet management company LeasePlan and at the European division of consumer goods giant Unilever, where he spent a total of 27 years.

The FTSE 250 business did not go into considerable detail about his departure or where the alleged misconduct occurred, except to say that he had exhibited behavior that did not meet the high standards expected of leadership.

He added that his resignation was unrelated to the company’s financial results, strategy or proposed purchase of Derco, Latin America’s largest independent car dealer, for £1.3bn.

Later today, Inchcape is also due to publish the circular on the Derco acquisition, in which it is expected to maintain its established timeline for completing the transaction and its full-year outlook.

Adrian Lewis, the group’s financial controller, has been announced as de Zoeten’s interim successor while the search for a permanent replacement is underway.

inchcape shares they were 3.9 percent lower at 844.5 pence during Monday afternoon, although their value has risen about 43 percent in the past two years.

Like other British car dealers, the London-based company benefited from a release of the pent-up lawsuit last year as customers with extra savings sought to upgrade their cars.

On top of this, semiconductor shortages and other supply chain crises have led to a global decline in vehicle production, driving up prices for new and used engines.

Its third-quarter results, released last month, showed total organic revenue growth of 16% year-over-year, helped by stronger performance in all regions, record order books in some territories, and .

Inchcape, founded in Kolkata in 1847, sells vehicles in more than 40 markets, including the UK, where it operates around 100 sites, selling more than 80,000 cars each year from brands including Porsche, Mercedes, Jaguar and Lexus.

Following the invasion of Ukraine in February, the company sold its Russian assets, which had generated £740m in revenue the previous year, around 10 per cent of its total business.

The company has said it expects to incur an estimated non-cash pre-tax loss of £240m from the transaction, with around £140m arising from currency translation losses.

Despite this, Inchcape raised its full-year earnings forecast, telling investors it expects adjusted earnings before tax from continuing operations towards the high end or “slightly above” its £350 guidance range. million to £370 million.

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Jacky

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