REG - Inchcape PLC - 1st Quarter Results

InchcapeAnnouncement

25/04/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240425:nRSY9296La&default-theme=true

RNS Number : 9296L  Inchcape PLC  25 April 2024

25 April 2024

Inchcape plc, the leading global automotive distributor, announces its Q1
trading update covering the period from 1 January to 31 March 2024

All figures and comments based on a continuing operations basis (i.e.
excluding UK Retail, which is a discontinued operation).

Q1 2024 trading update
Positive start to the year, major strategic progress

·    Good revenue growth, outperforming our markets:

o Group revenue of £2.3bn(1), with 5% reported growth

o  Organic and acquired growth, partly offset by translational currency
headwinds

o Further momentum in APAC, with broad-based organic growth across our
markets, supported by acquisitions

o Continued outperformance in Europe, driven by order bank unwind

o Key markets stabilising in the Americas

 

·    Inchcape becomes a pureplay Distribution business:

o Agreed divestment of UK retail operations for cash consideration of £346
million

o £100m share buyback announced, to commence on completion of transaction

o Continued expansion of Inchcape's market-leading Distribution business:

§ Positive contribution to growth from recent Distribution contract wins

§ New Distribution contract wins - Ford in Estonia and Forland (Commercial
Vehicles) in Ecuador

 

·    Outlook reiterated (on a continuing operations basis):

o Moderated growth for the Group in FY 2024, at constant currency

o Growth to return to higher levels over the medium to long term

 

Duncan Tait, Group Chief Executive, commented:

"Our positive start to 2024 reflects the underlying quality of our business
and we have confidence in, and we have reiterated, our outlook for the year.

"We recently announced an agreement to divest our UK Retail business. This
transaction will complete our strategic transformation into a pureplay
Distribution business which is capital light, highly cash generative, higher
margin and globally diversified.

"With our global market leadership position, digital and data capabilities to
support our OEM partners, our Distribution platform is well positioned for the
future, and we remain confident about the medium to long-term outlook for the
Group."

 

 Q1 2024 revenue YoY%                Reported  Constant FX  Organic(2)
                                     Q1        Q1           Q1
 Group(1 ) (continuing operations)   +5%       +11%         +6%
 Discontinued operations(1)          (5)%      (5)%         (5)%

( )

1: Our UK Retail business has been treated as asset-held-for-sale and a
discontinued operation, and has therefore been removed from the current and
comparative periods. Our Retail business in Poland has been consolidated
within our Distribution segment.

2: Organic growth is defined as sales growth in operations that have been open
for at least a year at constant foreign exchange rates.

Q1 2024 trading overview

The following commentary covers the period from 1 January to 31 March 2024.
Unless otherwise stated, all figures are quoted on an organic basis.

Group revenue increased 5% on a reported basis during the period. This
reflected 6% organic growth and a 5% contribution from recent bolt-on
acquisitions in APAC, offset by (6)% translational currency headwinds:

 ·             In the Americas, key markets are stabilising, with continued growth in Central
               Americas.
 ·             Strong momentum in APAC, with broad-based growth across a number of markets,
               including Hong Kong and Singapore. The region also benefitted from the
               contribution from acquisitions made in FY 2023.
 ·             The Europe and Africa region outperformed, with accelerated supply supporting
               an order bank unwind in certain markets in Europe, against a backdrop of muted
               new consumer demand.

On 15 April 2024, the Group announced that it had signed an agreement to
divest its UK Retail business to Group 1 for cash consideration of £346m. The
transaction is expected to complete in Q3 2024, subject to FCA approval.

 
Market abuse regulation statement

This announcement contains inside information.

 
Conference call today

A conference call for analysts and investors will be held today, Thursday 25
April, at 08:30 (UK time).

Dial-in details: +44 (0) 33 0551 0200

Password (if prompted): Quote 'Inchcape Q1 Results' when prompted by the
operator.

Webcast details: To register for the webcast of the event please follow this
link (https://stream.brrmedia.co.uk/broadcast/65f4687524a89cbc1652b0b6) . A
replay of the call will be available via the Company's website,
www.inchcape.com (https://www.inchcape.com/) later today.

 
Financial calendar
 Ex-dividend date for 2023 full year dividend         2(nd) May 2024
 Record date                                          3(rd) May 2024
 Annual general meeting                               9(th) May 2024
 In the driving seat webinar: Our Distribution Model  23(rd) May 2024
 Last election date                                   24(th) May 2024
 Payment date                                         17(th) June 2024
 H1 2024 Interims Announcement                        30(th) July 2024
 Q3 2024 trading update                               24(th) October 2024

 
Contacts
 Inchcape plc (Investor queries):
 Rob Gurner                                    +44 (0)7825 189 088   i (mailto:investors@inchcape.com) nvestors@inchcape.com
                                                                     (mailto:investors@inchcape.com)
 Krishma Arora

 Dentons Global Advisors (media enquiries):
 James Melville Ross                           +44 (0) 20 7038 7419  inchcape@dentonsglobaladvisors.com (mailto:inchcape@dentonsglobaladvisors.com)
 James Styles
 Leah Dudley

 
About Inchcape

Inchcape is the leading global automotive distributor, with operations across
six continents.

 

By combining our in-market expertise with our unique technology and advanced
data analytics, we create innovative customer experiences that deliver
outstanding performance for our partners - building stronger automotive brands
and creating sustainable growth.

 

Our distribution platform connects the products of mobility company partners
with customers, and our responsibilities span product planning and pricing,
import and logistics, brand and marketing to operating digital sales, managing
physical sales and aftermarket service channels.

 

Delivering for our partners, our customers and our people - so they can
realise their ambitions in the new world of mobility.

 

The Group is headquartered in London and employs around 22,000 people
globally.

 

www.inchcape.com (http://www.inchcape.com)

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTQKQBDOBKDDQB