Full Annual Report - Inchcape

More documents

Recommendations

Info

Business review Strategy Group Chief Executive’s strategic review Inchcape is uniquely positioned worldwide.We are a leading independent international automotive distributor and retailer who has delivered a record cash performance in the downturn by creating great value from great brands.We are strongly positioned for the global recovery. André Lacroix Group Chief Executive Sales £5.6bn -10.8% £4.5bn £4.8bn £6.1bn £6.3bn £5.6bn Operating profit before exceptional items £175.2m -27.2% £189.4m £213.9m £265.0m £240.5m £175.2m Cash generated from operations £336.7m +83.3% £195.4m £236.8m £293.0m £183.7m £336.7m Inchcape is a leading independent, international automotive distributor and retailer, with scale operations in Australia, Belgium, Greece, Hong Kong, Russia, Singapore and the UK as well as operations in 19 other markets.We represent some of the world’s leading automotive brands with whom we have long-standing relationships. The Inchcape management team has reacted decisively to the unprecedented global slowdown in car sales witnessed in the latter part of 2008 and in early 2009 by focusing on five key operational priorities: to build market share; to grow our aftersales business; to reduce our costs; to manage our working capital by controlling inventory; and to limit capital expenditure to committed strategic investments. These actions, together with our decision to strengthen our capital structure and reduce debt through a Rights Issue completed in April 2009 with the support of our shareholders,has meant the Group has ended 2009 in a significantly stronger position than we entered it. Inchcape is in a net cash position, has gained share in many of its key markets, has enjoyed a resilient aftersales performance (approximately 50% of Group gross margin) and has significantly reduced the cost of doing business. Our operating cash flow was the highest achieved since 2000 and was almost twice our operating profit (before exceptional items) as we reduced our stock. Further, we have strengthened our balance sheet which will enable the Group to trade effectively, invest in working capital and to take advantage of the upturn. During the Company’s 160 plus year history, Inchcape has invariably emerged from a time of crisis stronger and more resilient. Although we expect a continuation of difficult trading conditions in many of our markets until well into the second half of 2010, I am confident that we are uniquely positioned as the global industry leader to grasp the opportunities of recovery when they emerge. In that context, I would like to emphasise why we believe that the medium to long term outlook for Inchcape is very exciting. 05 06 07 08 09 05 06 07 08 09 05 06 07 08 09 10 Inchcape plc ¦ Annual Report and Accounts 2009
Section One Business review Uniquely positioned Focused strategy Vision To be the world’s most customer centric automotive retail group Strategy Strengthen Customer-focused operational excellence in every site Core Purpose To create the ultimate customer experience for our brand partners Strategy Expand Consolidation in high margin/high growth areas Key strengths Resilient business 1 model Unique 2 approach Decentralised and empowered 3 organisation Uniquely 4 positioned for the future Our broad geographic spread, scale and diversified activities give us balanced expansive and defensive capabilities, so we can grasp growth opportunities by selling more vehicles, finance and insurance products and draw upon consistent streams of revenue from vehicle servicing and the sale of parts. Our unwavering Customer 1st focus driven by our unique Inchcape Advantage programme succeeds in creating the greatest possible value from the world’s leading automotive brands in every market where we operate, constantly strengthening our relationships with our brand partners and our customers. Our empowered local management teams have a deep understanding of regional trends and customer preferences.The speed and decisiveness with which they responded to the onset of recession through a focus on our five key priorities enabled us to manage the impact of the downturn and emerge from 2009 with improved customer service, a lower cost base and in a net cash position. With our unique business model, long standing brand partner relationships, diverse geographic spread, financial strength, scale operations and engaged people, we believe Inchcape is in a unique position to continue to outperform our competitors and to benefit from the global market recovery. More on pages 12-13 More on pages 14-15 More on pages 16-17 More on pages 18-19 www.inchcape.com 11
Page 1 and 2: Annual Report and Accounts 2009 Ind
Page 3 and 4: Section One Business review Financi
Page 5 and 6: Section One Business review Strengt
Page 7 and 8: Section One One Business review Nor
Page 9 and 10: Section One Business review level g
Page 11: Section One Business review Busines
Page 15 and 16: The Inchcape business model Section
Page 17 and 18: The Inchcape Advantage Section One
Page 19 and 20: Global experience Section One Busin
Page 21 and 22: Superior customer service driving g
Page 23 and 24: Section One Business review Like fo
Page 25 and 26: Section One Business review Regiona
Page 27 and 28: Section One Business review Franchi
Page 29 and 30: Section One Business review The mar
Page 39 and 40: Section One Business review Cash fl
Page 41 and 42: Section One Business review Treasur
Page 43 and 44: Section One Business review Progres
Page 45 and 46: Section One Business review Our cus
Page 47 and 48: Section One Business review in acco
Page 49 and 50: Section One Business review 3 Toyot
Page 51 and 52: Section One Business review We have
Page 53 and 54: Section Two Governance Governance 5
Page 55 and 56: Section Two Two Governance 4 5 3 8
Page 57 and 58: Section Two Two Governance 9 10 11
Page 59 and 60: Section Two Two Governance Inchcape
Page 61 and 62: Section Two Two Governance Board ba
Page 63 and 64:
Section Two Two Governance iPOM - 7
Page 65 and 66:
Section Two Two Governance of inter
Page 67 and 68:
Section Two Two Governance In addit
Page 69 and 70:
Section Two Two Governance Chairman
Page 71 and 72:
Section Two Two Governance process,
Page 73 and 74:
Section Two Two Governance Notes to
Page 75 and 76:
Section Two Two Governance Notes on
Page 77 and 78:
Section Two Two Governance Director
Page 79 and 80:
Section Two Two Governance appropri
Page 81 and 82:
Section Three Financial statements
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Section Four Shareholder informatio
show all

Full Annual Report - Inchcape

Create successful ePaper yourself

Delete template?

Save as template?