F&I Management & Training

In a pre-close statement it said total revenue for the eleven months to November 2009 was 11.4 per cent below last year in actual currency and 17.5 per cent below last year in constant currency.

Revenue down

Like-for-like revenue was down against last year by 9.4 per cent in actual currency and 15.6 per cent in constant currency.

In the second half of 2009, the group performance was boosted by strong new car sales in the UK, generated by the scrappage scheme.

Inchcape said its aftersales business, which represents half of group gross profit, was also performing well.

New car sales

"Our UK retail business is enjoying a stronger than expected fourth quarter: New car sales are significantly ahead of last year as we continue to benefit from the scrappage incentive scheme."

The good performance was also due to the VAT increase in 2010 pulling forward demand in the premium sector, something which may impact on sales in 2010.

Margins increase

Inchcape said margins on used cars continued to be exceptionally high.

But the group remained "cautious" for 2010 and does not expect any global car industry recovery to start until "well into the second half of 2010".

André Lacroix, Inchcape group chief executive officer, said: "In 2009, the group has improved customer service globally and we have gained share in many of our markets, while cutting costs and reducing inventory to mitigate the effects of an unprecedented global downturn in the car industry.

"While we continue to expect market conditions in 2010 to remain challenging, the group is well placed to benefit from the market recovery and to take advantage of industry consolidation opportunities in the medium term."

Inchcape will announce its annual results for the year ended 31 December 2009 on 10 March 2010.

DATED: 23.12.09

FEED: MT