2009 Interim Results
Inchcape’s self-help measures deliver strong cash flow despite unprecedented market conditions
Inchcape plc, a leading independent automotive distributor and retailer , announces its half year results for the period ended 30 June 2009.
Operational & strategic highlights:
· Increased share in most markets
· Continued strong Aftersales contribution
· Significant like for like cost reduction of 13%
· Rapid reduction in net debt to £28m, down from £408m at year end:
o strong operating cash flow generation of £217m
o net proceeds of £234m from successful Rights Issue
Financial highlights:
· Reported Sales £2.8bn (2008: £3.3bn), down 22.9% in constant currency
· Pre exceptional PBT £65.4m (2008: £130.3m), down 57.6% in constant currency
· Reported PBT £47.0m (2008: £130.3m)
· Adjusted EPS* 1.3p (2008: 3.5p**)
· Reported EPS 0.7p (2008: 3.5p**)
* Before exceptional items ** Adjusted to reflect the Rights Issue
André Lacroix, CEO of Inchcape plc, commented:
“The Group has delivered a resilient performance in the first half of this year, demonstrating the strengths of our unique business model in a downturn and the responsiveness of our organisation to unprecedented market conditions.
Despite particularly challenging trading conditions, our operational focus on executing our five Group-wide priorities - of growing market share and Aftersales, whilst reducing costs, managing working capital and reducing capital expenditure - has delivered a strong cash flow performance. Combined with our recent successful Rights Issue, this has considerably strengthened our balance sheet.
We are pleased with our first half results due to solid performances in Australia, Singapore and the UK, improved Used car margins and good Aftersales resilience. However, in light of the global downturn, we remain cautious for the second half.
We will continue to focus on our five priorities as conditions in our markets remain challenging and we do not expect the global recovery to start until well into 2010.
We are confident in our ability to deliver a solid performance for 2009 as a whole and the Group is well positioned to benefit from the market recovery.”
Group Communications, Inchcape plc
+44 (0) 20 7546 0022
Investor Relations, Inchcape plc
+44 (0) 20 7546 8209
Financial Dynamics (Jonathon Brill/Billy Clegg)
+44 (0) 20 7831 3113
www.inchcape.com
Notes to editors
About Inchcape:
Inchcape is the leading, independent international automotive distributor and retailer operating in 26 markets. Inchcape has diversified multi-channel revenue streams including sale of new and used vehicles, parts, service, finance and insurance.
Inchcape’s vision is to be the world’s most customer-centric automotive retail group and represents some of the world’s leading automotive brands, including Toyota, Lexus, Subaru, BMW, Mazda, Mercedes-Benz, Volkswagen, Audi, Honda, Land Rover and Jaguar.
Inchcape, which has been listed on the London Stock Exchange since 1958, is headquartered in London, employs around 15,000 people.
www.inchcape.com
