Strong fourth quarter lifts Inchcape

17th Dec 2009 07:27

Car dealer Inchcape expects 2009's performance to be slightly ahead of expectations.Total revenue for the first 11 months of 2009 was 11.4% lower than the corresponding period of 2008 in constant currency terms.Like for like revenue over the same period was down 9.4% in actual currency and 15.6% in constant currency terms.On the bright side, the company is seeing strong demand for new cars in the UK in the second half while there are also signs of revival in the Hong Kong and Australian markets.Gross margin remains healthy, while the after sales business is performing well.Cash flow generation remains strong, while the cost base and working capital are well below the levels seen at the end of 2008.'In 2009, the group has improved customer service globally and we have gained share in many of our markets, while cutting costs and reducing inventory to mitigate the effects of an unprecedented global downturn in the car industry,' said André Lacroix, Inchcape's chief executive officer.