Inchcape outperforms forecasts 20 | 06 | 2011

INCHCAPE, THE GLOBAL automotive group — named after the Inchcape lighthouse which lies 11 miles out to sea off Arbroath — bucked the trend across the industry by outperforming its expectations in the first quarter of 2011. The key to its growth came as demand for premium new cars continues to lead the market.

“We continued to outperform the industry, gaining market share, as we benefited from our scale representation in the luxury segment,” the group said in a trading statement to the London Stock Exchange.

“Our used car margins remained robust and our aftersales business continued to deliver a resilient performance.”

At £1.563 billion, its global turnover was slightly better than Inchcape’s expectations, with total revenue down 0.6% and like-for-like revenue down 0.8%.

A 9.6% fall in revenue in the UK and Europe was offset by 10.9% growth in sales in Asia-Pacific and the emerging markets. Expansion is planned for its businesses in Russia, Poland, South America and China.

A cost reduction programme, announced near the end of 2010, is “on track” with 12 underperforming sites closed in the first quarter of 2011. Inchcape said its financial position remains strong and it expects to end 2011 with about £100 million net cash.

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Mark Stephens