Global automotive retail group Inchcape plc has released its 2014 results confirming a fifth consecutive year of double-digit earnings growth.
On a global level the group recorded sales of £6.7bn up from £6.5bn in 2013. Inchcape’s like for like sales revenue growth was 10.1% for 2014 when currency fluctuations are removed (constant currency).
The group’s UK business delivered like for like revenue growth of 12.7% against a market that grew by 9.3% . Inchcape’s UK trading margin was down 20bps reflecting a higher mix of New Car sales coupled with the continuing pricing pressure in New and Used Car segments. The UK performance was driven by both the retail market, which increasing by 9.8%, supported by affordable Personal Contract Purchase (PCP) financing, and the fleet/business market that grew by 9.0%. The group recorded sales of £2,472.8m in 2014 compared to the figure of £2,224.3m in 2013.
André Lacroix, Group CEO of Inchcape plc, commented:“Inchcape’s strategic partnerships with the world’s leading premium and luxury brands and differentiated Customer 1st strategy have enabled us to seize the exciting growth opportunities in the global automotive industry and to outperform through leveraging unique local drivers in a number of our important markets.
“The acceleration of like for like sales momentum in 2014 has delivered a fifth consecutive year of double-digit earnings growth and a step-up in cash generation through our consistent operational discipline on costs and cash.”
In respect of the outlook for 2015 Lacroix added: “We have good visibility across our markets and categories and, notwithstanding an uncertain geopolitical environment in some of our markets, we expect to deliver a robust underlying constant currency performance in 2015.”
Inchcape is active in 26 territories worldwide. Six long-standing brand partner relationships deliver around 90% of Group profits. The brands in question are Toyota,Volkswagen-Audi, BMW, Subaru, Mercedes-Benz and Jaguar Land-Rover.
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