Dealer group Inchcape reports positive start to 2010

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Car dealer group Inchcape has reported a 10.6% increase in total revenues following a robust performance so far this year and the company said revenue from new car sales was stronger than expected in several of its markets.

This performance has been greatly assisted by an increasing share of the UK marketplace together with ‘stronger than expected’ revenues from new cars.

Strong used car revenues and a decent aftersales performance – which, perhaps surprisingly, accounts for 50% of the Group’s gross profit – further helped the good performance.

After coming out of last year debt-free, the Inchcape board have stated that the firm’s cost base continues to be well managed.

They did, in spite of this, warn that the remainder of this year may well be more uncertain, as the new car market is weaker now the scrappage scheme has concluded. It means Inchcape may not replicate a like-for-like revenue enhancement of 12.4% next time round.

Group CEO of Inchcape PLC André Lacroix said: ‘We are pleased with our first quarter performance, as we enjoyed our second consecutive quarter of like for like revenue growth at constant currency since the start of the global downturn in the fourth quarter of 2008.

‘This strong performance demonstrates the strength of Inchcape’s global portfolio, as the Group has seen stronger demand for new vehicles in several markets around the world.

‘Inchcape continues to benefit from its diversified revenue streams and is uniquely positioned moving forward to take advantage of the global industry recovery as we focus on our five Group wide priorities of growing market share and aftersales.’

Inchcape, he went on, is also set to improve margins, control working capital and be selective about capital investments.

Amongst others Inchcape represents the Audi, BMW, Ford, Honda, Jaguar, Land Rover, Lexus, Mercedes, Mini, Toyota, VW and Volvo brands in the UK and includes well known dealerships Cooper, Hunters and Mann Eggerton.