TIDMINCH
RNS Number : 1018P
Inchcape PLC
24 May 2018
Trading Update
Inchcape plc ("Inchcape" or the "Group"), the leading
independent multi-brand Automotive Distributor and Retailer with
global scale, today releases its Trading Update covering the period
from 1 January 2018 to 23 May 2018. Figures quoted in this
statement are for the four months ended 30 April 2018.
TRADING FOR THE FOUR MONTHS TO 30 APRIL 2018
-- Group revenue GBP2.99bn, up by 2.9% at actual currency and 6.2% at constant currency
-- Distribution revenue was up by 4.1% at actual currency and up 9.5% at constant currency
-- Retail revenue was up by 1.9% at actual currency and up 3.6% at constant currency
-- Central America acquisition which closed 26 March contributed 0.8% to Group revenue
STEFAN BOMHARD, GROUP CEO OF INCHCAPE PLC, COMMENTED
"I am pleased with the strategic progress we have made in the
period, despite a challenging market backdrop in some regions. Our
performance over the first four months of 2018 is reflective of the
trends we had anticipated at the start of the year and follow from
those seen in the latter part of 2017.
Over the period sales performance has been solid, with strength
in Emerging Markets and Australasia offsetting weaker performance
in UK & Europe. Our Distribution profit performance has
remained strong, with a good performance in Asia despite more
limited permit availability in Singapore, confirming our confidence
in our ability to manage the current cyclical downturn in new car
sales in the Singapore market. As seen in the second half of 2017,
vehicle margins remain under pressure in both the UK and Australia
Retail markets.
In March we were pleased to announce the acquisition of a
Suzuki-focused Distribution business in Central America, our sixth
distribution deal in 24 months. The on-boarding process has started
very well and I'm excited by the opportunities that a stronger
presence in the region and globally enables. We look forward to the
future with confidence."
OUTLOOK
Our outlook for the year is unchanged. Overall, our year-to-date
performance is broadly consistent with the trends and shape of the
outlook we expected for 2018 profits. In our Distribution
businesses we expect a strong performance across our value drivers
and, after a challenging first half for Retail, comparatives will
ease.
We expect solid profit growth year-on-year on a constant
currency basis, reflecting our resilient organic growth
expectations and the accretion due to the Central America
Distribution acquisition.
Looking beyond 2018, Inchcape will continue to benefit from its
global diversification and scale, its increasing exposure to higher
growth and Distribution markets, and from the organic and inorganic
elements of the Ignite strategy.
Inchcape is a strongly cash generative business with a solid
balance sheet. We remain committed to disciplined capital
allocation and the creation of shareholder value.
REGIONAL REVIEW
ASIA REVENUE +4.4%(1)
-- Good Singapore performance with solid market share gain against New car market decline
-- Singapore profitability supported by product mix improvements, including higher SUV sales
-- Strong market share gains in Hong Kong where the underlying market remains broadly stable
AUSTRALASIA REVENUE +11.0%(1)
-- Good growth in Distribution driven by market, recent Subaru
launches and Peugeot Citroen consolidation
-- Subaru profit growth continues to reflect lower margin
product mix, but Yen transactional tailwind a support
-- Vehicle margin decline continuing to impact Retail profits
UK & EUROPE REVENUE (1.1%)(1)
-- Continued UK market supply and demand imbalance further pressuring vehicle margins
-- Greece recovery momentum continues with strong New vehicle and Aftersales growth
-- Strong growth in Eastern Europe and Balkans
EMERGING MARKETS REVENUE +31.3%(1)
-- Russia business continues to outperform the market for imported brands, supported by Used
-- Encouraging revenue growth across South America
-- Political dynamics in Ethiopia have resulted in softer new
car sales, but Aftersales remains resilient
-- Integration of the Central America acquisition progressing to
plan, with 6% contribution to regional growth
CAPITAL MARKETS DAY
Inchcape will hold a Capital Markets Day for investors and
analysts on 6 June 2018 in Central London. The event will run from
1pm - 7pm. For more information contact investors@inchcape.com.
Presentation materials will also be posted on our website.
Ends.
MARKET ABUSE REGULATION STATEMENT
This announcement contains inside information.
ENQUIRIES
Group Communications, Inchcape plc +44 (0) 20 7546 8426
Investor Relations, Inchcape plc +44 (0) 20 7546 8225
Financial PR, Instinctif (Helen Tarbet) +44 (0) 7825 609 737
Inchcape@instinctif.com +44 (0) 20 7457 2020
NOTES
1. References in the regional review are at constant currency.
2. IFRS 15 has been implemented for the year ending 31 December
2018. We have adopted a fully retrospective approach to transition,
with all comparatives restated within this statement.
3. Inchcape is the leading independent multi-brand Automotive
Distributor and Retailer, operating in 31 markets with a portfolio
of the world's leading automotive brands. Inchcape has diversified
multi-channel revenue streams including sale of new and used
vehicles, parts, service, finance and insurance. The Company has
been listed on the London Stock Exchange since 1958, is
headquartered in London and employs around 17,000 people.
www.inchcape.com
4. Statements made in this announcement that look forward in
time or that express management's beliefs, expectations or
estimates regarding future occurrences are 'forward-looking
statements' within the meaning of the United States federal
securities laws. These forward-looking statements reflect the
Group's current expectations concerning future events and actual
results may differ materially from current expectations or
historical results.
5. Conference call for Analysts and Investors at 7:45am on 24
May 2018 - For details please contact Rosie Driscoll at Instinctif
on +44 20 7457 2856 and rosie.driscoll@instinctif.com.
6. The next update on trading is expected to be the Group's
first half results announcement for the period ending 30 June 2018
on 26 July 2018.
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END
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