Inchcape (INCH) will be on a high when chief executive André Lacroix leaves at the end of the month. Like-for-like sales at the global car retailer grew much faster than the wider market, and adjusted pre-tax profits rose 10 per cent to £303m. That marked the fifth consecutive year of double-digit earnings growth.
Chairman Ken Hanna said 2014 had been an important "inflection point" for the group, for two reasons. First, business regions where new car sales have soared since the financial crisis have started benefiting from growth in their higher-margin service, parts and used car divisions. Second, the important markets of Singapore and Greece have now returned to growth. Sales grew 39 per cent in the former, driving trading profits across south Asia up 49 per cent.
Overall, strong performances in Asia, the UK and Australia helped offset Inchcape's emerging markets business, where profits slid 21 per cent to £43.7m. That was largely due to problems in Russia. Management has revised down its forecasts for the country and taken a £47.4m goodwill impairment charge, which explains the fall in reported pre-tax profit.
Deutsche Bank expects adjusted pre-tax profit of £312m this year, giving EPS of 51p, up from £303m and 49p in 2014.
| INCHCAPE (INCH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 790p | MARKET VALUE: | £3.5bn | |
| TOUCH: | 789-791p | 12-MONTH HIGH: | 802p | LOW:589p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 290p* | NET CASH: | £210m | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 5.89 | 192 | 27.9 | 6.6 |
| 2011 | 5.83 | 203 | 31.0 | 11 |
| 2012 | 6.09 | 248 | 39.4 | 14.5 |
| 2013 | 6.52 | 266 | 41.8 | 17.4 |
| 2014 | 6.70 | 256 | 39.7 | 20.1 |
| % change | +3 | -4 | -5 | +16 |
Ex-div: 28 May Payment: 25 Jun *Includes intangible assets of £472m, or 106p a share | ||||
