Inchcape Jaguar Chester, Jul 2021Inchcape Jaguar Chester, Jul 2021

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Inchcape Retail’s annual losses worsen nearly tenfold to £65.6m as it claims more than £11m in furlough

  • Franchised retailer group’s pre-tax loss widens by similar proportion to £76.4m
  • Operating deficit plummets from £4.8m to £74.1m
  • Turnover sinks from £1.51bn to £1.08bn

Time 1 month ago

Inchcape Retail suffered further financial woes last year, seeing its £6.6m loss of 2019 worsen nearly TENFOLD to £65.6m.

In its annual accounts to December 31, 2020, which have just been filed with Companies House, the franchised retailer group – which has more than 100 dealers and is part of the worldwide Inchcape group – said it made a loss of £65.585m in 2020 versus £6.645m the year before, as the pandemic took grip.

Its pre-tax loss also similarly increased from £7.67m to £76.412m as revenue sank by more than £400m from £1.51bn in 2019 to £1.08bn in 2020.


Meanwhile, its operating loss widened from £4.791m to £74.1m.

That was despite it taking advantage of the furlough scheme to the tune of £11.028m as well as business rates relief during the first half of the year.

In addition, the directors and senior management of the company, which has its registered office at Birmingham Business Park, agreed to have their pay temporarily cut by a fifth.

Inchcape’s retail sites were closed for three months of the year, although trading continued via click-and-collect and aftersales carried on as well.



But a restructure saw employee numbers sink by exactly 1,000 to 2,664.

The board report, signed on its behalf by chief executive James Brearley, says: ‘The Covid-19 situation remains very dynamic, and it is unclear how the world will change once the virus has been contained.

‘Nevertheless, the impact of the virus remains material and will be closely monitored through 2021.’

As far as Brexit is concerned, it said any short-term impact would relate to supply disruption of new vehicles and parts, but it believes that is manageable.

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‘The medium-term macro-economic impact on the UK also remains uncertain,’ it says, with any slowdown in economic activity or cutback of credit availability in the UK affecting its retail operations.

Its dealerships represent Audi, BMW, Jaguar, Land Rover, Lexus, Mercedes-Benz, Mini, Porsche, Smart, Toyota, Volkswagen and Volkswagen Commercial Vehicles.

Pictured via Google Street View is Inchcape’s Jaguar dealership in Chester

How did other dealer groups get on in 2020?

John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.

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