Tuesday, July 31, 2012
UK Drives strong Inchcape results
International auto retail and distribution group, Inchcape, has delivered a strong start to the year with sales (to June 30) up 6.1% and pre-tax profits ahead by 5.8%.
Chief executive, Andre Lacroix, said: “The group started 2012 well with a performance ahead of expectations in the first quarter. In the second quarter we have benefited from strong growth in the premium and luxury segments in the UK and across Asia Pacific and the emerging markets.”
Inchcape delivered revenue of £3.1bn in the first half and an operating profit of £138.4m, an increase of 5.0% from the first half of 2011, with return on sales at 4.5%. Profit before tax in H1 2012 was £134.2m compared to the tsunami-affected profit in 2011 of £126.8m.
Central costs in the period included a £6.1m one-off benefit from the settlement of certain liabilities in one of the group’s pension schemes. After adjusting for this benefit, Inchcape delivered an underlying operating profit increase of 10.1%.
Central costs in the period included a £6.1m one-off benefit from the settlement of certain liabilities in one of the group’s pension schemes. After adjusting for this benefit, Inchcape delivered an underlying operating profit increase of 10.1%.
Lacroix added: “Our retail segment delivered trading profit of £51.6m, up 1.6% in constant currency and 1.0% at actual rates of exchange as we benefited from a better than expected performance in the UK and Australasia.”
In the first half of the year the UK retail business delivered a strong trading profit of £33.8m, up 4.3% year on year with a record trading margin of 3.2%. The group’s share of the total UK market is up 0.1ppts to 3.3% and it achieved a like for like revenue growth of 2.9%.
In the used car market, the vehicle margin was broadly in line with last year and the company said its aftersales business continued to perform well.
Inchcape Fleet Solutions, the fleet distribution business, delivered a very strong first half to the year with trading profit up 9.7% through strong cost controls and tight gross margin management creating a record return on sales of 19.3%, up 1.7 ppts year on year.
“Given the stronger than expected industry performance in the first half year, particularly in the premium and luxury segments, we are revising our full year industry estimate to 1.98 million units, up 2% year on year,” said Lacroix.
Inchcape Fleet Solutions, the fleet distribution business, delivered a very strong first half to the year with trading profit up 9.7% through strong cost controls and tight gross margin management creating a record return on sales of 19.3%, up 1.7 ppts year on year.
“Given the stronger than expected industry performance in the first half year, particularly in the premium and luxury segments, we are revising our full year industry estimate to 1.98 million units, up 2% year on year,” said Lacroix.
“We expect our UK business to deliver a robust performance in 2012.”
DATED: 31.07.12
FEED: ARN
