Inchcape's first half profits jump 68%

Turnover
Turnover was £3.1bn, up 7.9 per cent in constant currency for the six months ending 30 June.

Inchcape group chief executive André Lacroix (pictured) said the firm had made a "robust recovery" in the first half helped by aftersales, which accounted for half of the group's gross profit.

"Inchcape's competitive position continues to improve through our strategic commitment to superior customer service enabled by our operational focus on our top five priorities of growing market share, growing aftersales, reducing costs, managing working capital and selective capital expenditure investment."

Recovery
Lacroix said Inchcape had benefited from industry recovery in several of its markets but he was cautious about the second half of 2010.

"Austerity measures implemented by a number of European governments including the UK may affect consumer confidence and slow down the global recovery that is being driven by strong growth in Asia Pacific and the emerging markets. Nonetheless, we currently expect the group will deliver another strong performance in 2010."

In the UK sales rose 10.2 per cent to £1.1bn in constant currency. Like-for-like trading profit grew 53.2 per cent to £31.1m.

Inchcape warned that the new car market in the second half would be smaller than last year and said for the second half it would capitalise on new car launches and further develop its Advantage aftersales programme.

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