Last checked at 10 Dec 2020 07:00
10 December 2020
This announcement contains inside information
Inchcape plc
Trading Update
Inchcape plc ("Inchcape" or "the Group") today provides the following trading update.
In our Q3 update of 5 November 2020, we reported that the Group was on course to deliver a performance significantly ahead of market expectations. At the same time we were mindful of further lockdown restrictions impacting a number of the markets in which we operate, and felt it was prudent not to give guidance for FY 2020.
It is now clear that the restrictions have had less of an impact on our performance than might have been expected with resilient demand for both Vehicles and Aftersales services. This was supported by our ability to continue delivering vehicles, provide a click-and-collect service and to continue to perform Aftersales services in the affected markets.
In light of this better than expected performance in November, and the limited restrictions in place as of today, we expect 2020 profit before tax (pre exceptionals) will be materially ahead of the published market consensus (£108m).
Additionally, supported by our highly cash generative business model, our overall financial position has strengthened further and we expect our year end net cash position will be substantially above the prior year.
Against the backdrop of a better trading performance and strong cash generation, we will consider resuming dividend payments in accordance with the performance of the business at the year end.
Notwithstanding our FY 2020 performance, we continue to operate in an uncertain economic environment as a result of the Covid-19 pandemic.
The Group's full year results will be published on 25 February 2021.
Ends
Inchcape plc - Investor RelationsRaghav Gupta-Chaudhary +44 (0)7933 395 158, investors@inchcape.com
Instinctif
Mark Garraway +44 (0)7771 860 938, Inchcape@instinctif.com
About Inchcape
Inchcape is the leading independent multi-brand Automotive Distributor and Retailer, operating in 34 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 16,000 people. www.inchcape.com