Inchcape reports record profits

Posted by: Admin in Car Dealer News Tuesday, 26 February 2008 0

Inchcape beat market forecasts with a 9.9 per cent rise in profits in 2007 – the group’s sixth consecutive year of record results.

Profit before tax and exceptional items rose to £235.1m in the year ended December 31, up from £213.9m in 2006.

The headline figures beat analysts’ expectations, which had anticipated profits of around C£228.5m.

Confident outlook

Sales soared by 25 per cent to £6.1bn from £4.8bn – buoyed by the group’s continued expansion in emerging markets.

UK trading profit rose 52 per cent year-on-year to £69.6m from £45.9m.

Inchcape chief executive Andre Lacroix said the group was confident about the year ahead and was well placed to deliver organic growth.

“Our twin-track growth strategy is about strengthening our existing business and expanding in emerging markets,” said Lacroix.

“We have made significant progress in executing our strategy and have delivered record results in 2007 for the sixth consecutive year.

“The fundamentals of our group are strong and our strategic direction is clear, we therefore look forward to 2008 with confidence.”

Shares in Inchcape rose 11p to 406.5p today upon announcement of the results, valuing the international car retailer at around £1.87bn.

Looking ahead, Inchcape said it would maintain its policy of investing in emerging markets.

In the UK the group said it would strengthen its focus on the growing premium sector and reduce the number of franchises it operates.

It also plans to dispose of non-core sites and businesses.