Car Dealership Inchcape sees growth in the luxury car market

We are constantly being told that the economy is growing and then it is in decline again, but one thing that hasn’t changed is the desire to have some luxury in our lives. The luxury car market seems to be growing year on year with some impressive figures coming out for the first half of 2014 for some companies.

Car dealership Inchcape said it delivered broad-based revenue growth in the first four months of 2014.

Group revenue was £2.212bn, up by 2.5% at actual currency (up 11.4% at constant currency). Like for like revenue was up by 0.8% at actual currency (up 9.5% at constant currency).

Demand for New Cars was robust overall and ahead of last year as the group continued to benefit from sustained growth in the premium and luxury segments.

Used Car and Aftersales activities, which represent c60% of the Group’s gross profit, performed well and ahead of last year, fuelled by the growth of the 1-5 year Car Parc following four years of consecutive growth in the New Car market.

A disciplined approach to cost control and cash conversion remains firmly in place.

André Lacroix, Group CEO, said:

“Inchcape has delivered a robust trading performance in the first four months of the year. Benefiting from broad-based growth across our markets and categories, we continue to expect to deliver a robust constant currency performance in 2014.

The Group has a track record of delivering premium growth with premium returns. This is a testament to the quality of our business model, our differentiated Customer 1st strategy and strong organisational discipline underpinned by our industry leading processes, which enable our operations to transform revenue growth into sustained earnings growth and strong cash generation.

Our partnerships with the world’s leading OEMs and the strength of our balance sheet position us both to seize attractive consolidation opportunities and make disciplined capital investment in high margin and high growth markets.”

Source: http://www.stockmarketwire.com/article/4812263/Inchcape-sees-strength-in-the-luxury-car-segment.html#sthash.cuzErA2C.dpuf