Global Multi-brand Automotive Distributor and Retailer, Inchcape plc, has announced its half year results for the six months ended 30 June 2017. The group has accounted £4.5bn revenue for H1 2017, up 9.5% in constant currency from the same period in 2016.
Inchcape UK has had a strong focus on aftersales during the period. It undertook a detailed review of constraints to Aftersales capacity in the first quarter and launched a recruitment drive for new technicians in the second quarter. In only two months the campaign has resulted in circa one hundred new technicians joining our UK business. The UK New Car market declined in the first half by 1.3%, with a first quarter growth of 6.3% and a second quarter decline of 10.3%.
Stefan Bomhard , Group CEO of Inchcape plc, “Our revenue, profit and free cash flow performance in the first half of 2017 was well ahead of last year as we continue to put our Ignite strategy into action. Reflecting the strength of these results, we now expect to deliver a solid constant currency performance in 2017, modestly ahead of our expectations at the start of the year. We achieved growth across our diversified set of value drivers, driven by our continued focus on improving our customers’ experiences, delivering the full potential of all revenue streams and by leveraging our global scale. I am pleased with the growth in our high-margin Aftersales operations, as we benefit from better expertise sharing within the Group. We have become ever more innovative in our approach to best serve the evolving needs of our customers, especially in digital. I can also report that we continue to identify incremental annual procurement cost savings.”
Inchcape’s retail segment delivered a trading profit of £60.3m, up 8.1% in constant currency, reflecting a challenging Russian market and a slowing trend in the UK. It’s UK & Europe segment recorded revenue up 5.2%. The performance in Europe was driven by the Belgian business, and the Balkan and Baltic operations. The group expects its year end performance to be “modestly ahead of expectations” at the start of the year.