Robust revenue and profit growth
Inchcape plc, a leading international automotive distributor and retailer, announces its half year results for the six months ended 30 June 2012.
Operational and strategic highlights:
- Robust revenue and profit growth driven by broad geographic spread and unique portfolio of leading automotive brands in the premium and luxury segments
- Over two-thirds of trading profit generated from Asia Pacific and the Emerging Markets
- Strong operational discipline on cost and cash
- Strategic investments in Asia Pacific and Emerging Markets on track
Financial highlights:
- Reported sales £3.1bn (2011 H1: £2.9bn), up 6.1% in actual currency and up 7.0% in constant currency
- Underlying operating profit £138.4m, up 10.1%* in actual currency and 10.0% in constant currency
- Underlying operating margin 4.5% (2011 H1: 4.3%*)
- Reported PBT £134.2m (2011 H1: £126.8m), up 5.8% in actual currency
- Reported EPS 20.9p (2011 H1: 19.6p), up 6.6%
- Net cash position: £227.7m (2011 H1: £188.6m)
- Interim dividend of 4.0p (2011 H1: 3.6p)
- In 2011 H1, central costs included a £6.1m one off benefit from the settlement of certain liabilities in one of the Group's pension schemes.
André Lacroix, Group CEO of Inchcape plc, commented:
"We have delivered a robust performance in the first half of the year, growing revenue by 6.1% and underlying operating profit by 10.1%. This is a testament to the strength of Inchcape's unique business model and the effectiveness of our differentiated Customer 1st strategy. We have made further progress on our Top Five Priorities of growing market share, growing aftersales, improving margin, controlling working capital and selective capital expenditure investment.
"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. This, combined with our operational discipline, has enabled us to deliver growth in profit before tax of 5.8% and earnings per share growth of 6.6%.
"The Group operates in the right economies, with the right brands and trades in the right categories given our scale presence in Asia Pacific and the Emerging Markets, our focus on premium and luxury brands and our diversified profit streams.
"We believe Inchcape is engineered for growth and we expect the Group to deliver a robust performance in 2012"
