Inchcape posts last set of results before Group 1 ownership

Inchcape posted a £3 million pre-tax loss for the seven months ended July 31, 2024 before the company’s decision to offload its automotive retail business in the UK to Group 1 for £345m.

Inchcape was actually left with net cash inflow on disposal of business of £372m, following on from the disposal of assets and other fees.

Group 1 acquired Inchcape’s 54 sites on August 1 last year to take it to a total of 109 outlets and to revenues of more than £4 billion to place it within the top five of the AM100.

Inchcape’s UK auto retail business posted an operating profit of £6 million for that same seven month period and revenues of £1.2bn.

Inchcape revealed in January 2024 that it had put its UK dealer group, Inchcape Retail, under a strategic review as it continued to refocus on expanding its global vehicle distribution operations, rather than retailing.

Duncan Tait, Inchcape chief executive, said at time of the sale last year: "With our active international expansion into higher value distribution activities, the strategic importance of the UK retail operations has become limited.

"The board has therefore concluded it is the right time for a new owner to take this business forward.

“This transaction aligns with our strategic priorities, simplifies our business and represents a compelling opportunity to deliver meaningful returns to our shareholders."

Inchcape's UK dealership portfolio includes Audi, BMW/Mini, Jaguar Land Rover, Lexus, Mercedes-Benz, Smart, Porsche, Toyota, Volkswagen and Volkswagen Commercial Vehicles. 

On an aggregate basis, these dealerships sold more than 63,500 new and used vehicles, and 24,000 corporate units, annually.