GLOBAL dealer group Inchcape has announced Q3 results that were ‘slightly ahead of expectations’.
Total revenues for the group up to September 2010 rose 7.6 per cent (in actual currency – 4.2 per cent in constant currency), while like for like revenues were up 8.6 per cent on 2009’s figures (up 5.2 per cent in constant currency).
A ‘strong continuation of the strong industry recovery’ in Australia, Hong Kong, and South America and improved ‘market conditions’ in Russia are quoted as the reasons.
André Lacroix group CEO of Inchcape plc, said: ‘In the first nine months of 2010, the Group has enjoyed the benefits of operational leverage with strong vehicle revenues driven by industry growth and market share gains in most of our markets and good momentum in aftersales, which represents around half of Group gross profit.
‘Inchcape’s strong performance is driven by our Group-wide operational discipline on our top five priorities of growing market share and aftersales while improving margins, controlling working capital and being selective about our capital expenditure’.
Meanwhile Inchcape report they saw fewer new registrations in the UK following the ending of scrappage, and demand for new cars also fell in Greece.
The Group’s used car revenues and margins remained strong and their aftersales business – which represents circa 50 per cent of the Group’s gross profit – continued to perform well.
However Inchcape have also announced that it aims to cuts costs by £25m, to reduce their ‘headcount’ by 500, and plans to dispose of 10 sites.
‘We expect the continuation of an uneven global recovery and remain cautious regarding the short term industry outlook in some of our markets. Given our strong track record and the cost restructuring initiatives announced today, we expect the Group to trade effectively and improve its competitive position in these challenging trading conditions,’ Lacroix added.
by JAMES BATCHELOR