2009 Annual Results Announcement
2009 Annual Results Announcement
10th March 2010
Inchcape plc
2009 Annual Results Announcement
Record cash generation - Inchcape well positioned for future
Inchcape plc, a leading international automotive distributor and retailer, announces its annual results for the year ended 31 December 2009.
Operational and strategic highlights:
· Improved competitive position with further progress on customer service and market share
· Benefited from broad geographic spread
· Margin benefit from counter-cyclicality of used cars
· Resilient performance in aftersales, c.50% of Group gross margin
· Successful restructuring programme delivered cost saving of c.£70m
· Strengthened financial position, Group now debt free
Financial highlights:
· Reported sales of £5.6bn (2008: £6.3bn)
· Pre exceptional PBT £155.1m (2008: £190.7m)
· Reported PBT £136.7m (2008: £108.2m)
· Adjusted EPS* 2.7p (2008: 5.0p)
· Reported EPS* 2.3p (2008: 1.9p)
· Operating cash flow £336.7m (2008: £183.7m)
· Successful Rights Issue raised £234.3m net proceeds
*Adjusted to reflect the Rights Issue
André Lacroix, CEO of Inchcape plc, commented:
“The Group has delivered a resilient financial performance with record operating cash flow, demonstrating the success of our responsive management of the global downturn and the defensive strengths of Inchcape’s unique business model.
We have strengthened our competitive position despite the weak demand for new vehicles across most of our markets, through a balanced focus on delivering high levels of customer service, growing market share, growing aftersales, reducing costs, managing working capital and selective capital expenditure investment.
In the second half of 2009 we saw strong growth in the UK, where we have continued to outperform the industry and both the Australian and Hong Kong markets have started to recover.
In 2010, we expect to benefit from continued market momentum in Hong Kong and Australia and stable industry in Belgium and Finland but we also continue to anticipate market declines in the UK, Greece, Singapore, Eastern Europe and Russia.
We therefore remain cautious for 2010 and do not expect a global recovery to start until well into the second half of this year given consumer confidence is still weak and unemployment continues to rise in many of our key markets. Nevertheless, we believe that the Group has the financial strength and flexibility both to continue to trade effectively and to further improve its competitive position.
We remain confident in our ability to deliver a robust performance in 2010 and we are uniquely positioned to benefit from the recovery in global demand.”
Ends
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.
