Inchcape has flagged up to investors the possibility of having to make payments for historical motor finance commission arrangements for its UK business before it was sold to US dealer group Group 1.
In results filed today it referenced the FCA review into historical motor finance commission arrangements announced in January 2024.
This investigation is ongoing. In the meantime, there have also been a number of relevant court decisions with the Supreme Court expected to deliver a definitive statement of the law following a hearing listed for April 2025.
“Following the Group’s disposal of its UK business, the group’s potential exposure to this matter arises from, and is limited to, the terms of the indemnity that it has given to the buyer of that business.
“It remains possible, though highly uncertain, that the Group may become liable to make certain payments under the terms of that indemnity.
“However, it is not currently practicable to estimate the quantum or timing of any such outflow given the inherent uncertainties associated with the court process and the s166 review.”
