Emerging markets boost for Inchcape

International car dealer Inchcape delivered record profit for the year, following a robust performance from emerging markets, and expects a robust performance in 2013.

International car dealer Inchcape delivered record profit for the year, following a robust performance from emerging markets, and expects a robust performance in 2013.

Pre-tax profit rose 24% to £251.5m for the year ended December 31st 2012 from £203.4m a year earlier. Revenue during the period rose 4.4% to £6.1bn.

Operating cash flow climbed to £249.2m from £244.7m before. Adjusted EPS grew 12% in 2012.

Inchcape said over 70% of group trading profit is now derived from Asia Pacific and Emerging Markets.

"We expect the group will deliver a robust performance in 2013, notwithstanding the increased competitive pressure on vehicle margins."

Inchcape said it also benefited from normalised supply conditions in Australia and Singapore in 2012, following the disruption caused by the Japanese earthquake and tsunami in March 2011.

Looking to the year ahead, the group expects trading conditions to remain challenging and anticipates the industry to decline further due to the reduction of de-registrations in 2012.

"We will continue to protect the pricing power of our brands by not pushing volume at the expense of profitability and by continuing to leverage our strong aftersales operation with innovative loyalty programmes. We will also successfully launch exciting new models from Toyota, Lexus and Suzuki," the group said.

The board has recommended a final dividend of 10.5p per share, giving a total dividend for the year of 14.5p up 32% from last year.

CJ

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