Global car dealership group Inchcape saw pre-tax profits grow by 27 per cent in 2004 thanks to strong sales in the key European and Asian markets.
The London-based company, which operates about 70 British dealerships, including a number in the Midlands, yesterday declared headline earnings of £172 million compared with £135.8 million in 2003.
Group turnover from its operations in the UK, Greece, Belgium, Australia, Hong Kong and Singapore, rose by eight per cent to £ 4 . 150 billion from £3.855 billion.
Inchcape, which sells a range of cars include Jaguars, Land Rovers, Mercedes-Benz, Volkswagens, Minis and Toyotas, is treating shareholders to a 35 per cent increase in the final dividend to 35p resulting a total payout of 50p, a rise of 32 per cent.
The company also announced a share buyback totalling £65 million.
With strong operating cashflow last year of £177.2 million, Inchcape will still be left with enough in the kitty to fund this year's expansion programme, finance director Alan Ferguson said yesterday.
Operating highlights in the UK last year included the acquisition of five Mercedes-Benz dealerships in the East Midlands, Inchcape said.
And despite a 2.4 per cent overall fall in registrations registered by Inchcape's car manufacturing partners, the group's outlets managed a 7.4 per cent increase in sales on a like for like basis.
This was due mainly to strong demand for brands such as Jaguar, Vauxhall, BMW and Mini.
Headline UK operating profits rose by 31 per cent to £22.7 million, yielding a margin of 2.1 per cent which, Incape said, "is significantly higher than the 1.8 per cent achieved in 2003, and moves us closes to our initial target of 2.5 per cent".
It went on to say: "This reflects our success at integrating new dealerships and achieving organic growth from existing dealerships through improved business processes."
Inchcape non-executive chairman Sir John Egan, aged 65, the former chairman and chief executive of Jaguar, will retire before the May 2006 AGM, the company announced.
Sir John, who has recently been appointed chairman of Severn Trent and who is also president of the CBI and Deputy Lieutenant of Warwickshire, will be replaced by Inchcape group chief executive Peter Johnson, aged 57.
The move is at odds with the Higgs code of boardroom appointments but Inchcape said the decision to elevate Mr Johnson had been approved by partners Toyota and Suburu.
"The board is confident that Peter will continue to show the strength of character and independent judgment that he exhibited as group chief executive," Mr Ferguson said. Alan Ferguson: Cash in kitty ..SUPL:
