10:28 am, July 31, 2014
INCHCAPE plc, one of the leading franchised retailer groups in the UK, has reported double-digit earnings growth and record profit before tax in its results for the first half of 2014.
The company, which works with many brands such as Audi, BMW, Jaguar, Land Rover, Mercedes-Benz, Toyota and Volkswagen, reported sales of £3.3 billion and profit before tax of £168 million.
Revenue was up 8.3 per cent and the company reported strong cashflow generation, with an interim dividend of 6.3 pence.
Andre Lacroix, group CEO of Inchcape plc, said: ‘Inchcape’s strategic partnerships with the world’s premium and luxury brands and our customer-first strategy continue to deliver robust revenue growth.
‘Combined with our operational discipline on costs and cash and focus on capital allocation, this has enabled the group to produce double-digit earnings growth and strong cash flow.
‘Our confidence in the group’s earnings potential and our highly cash generative business model is reflected in our progressive dividend policy with an interim dividend increase of 10.5 per cent and in our announcement today of a further £100 million share buyback programme over the next 12 months.
‘Our unique business model benefits from strong operational leverage and this, combined with our rigorous cost discipline, generated an operating profit before exceptional items of £168 million, an increase of 9.3 per cent from the first half of 2013, with a return on sales of five per cent.’
The company also benefited from a property disposal in Singapore which generated a one-off profit of £17.3 million.
