Analysis of publicly listed car dealer groups for 2014

Publicly listed dealer groups can expect a happy new year, say analysts

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6 January 2014

INCHCAPE

Inchcape has done it again: a much better than expected set of results and confirmation that it is ahead of forecasts, both in the UK and in the emerging markets it serves.


Andrew Lacroix, Inchcape chief executive

That happy situation is fuelled by the conglomerate’s specialising in the premium and luxury segments that continue to grow in most markets.

Charlie Muir-Sands, analyst at Deutsche Bank, says third-quarter sales were up 8%, with really good growth in both the UK and the emerging markets.

The UK is heading for a 3% unit car sales improvement. Singapore, small though it is, will generate a huge 10% year-on-year gain.

Deutsche points out that Inchcape has a strong position in the vibrant UK market and good trading in Asia and Australasia. It also has a very strong balance sheet that will allow it to take decisions on opportunities to grow the group by acquisition.

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Shareholder - 06/01/2014 12:21

I like the analysis of Vertu as I am a shareholder. I do worry about their buying at a permium from now on. I wonder when a merger between two of the big dealerships might be on the cards?. A merger might be a good way of gaining economies and savings in this fragmented industry.
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- Barry - 06/01/2014 21:12
  
  @Shareholder - nice idea but and merger between the big boys needs to be handled with care. I refer to Pendragon's unsuccessful integration of the excellent Reg Vardy in 2006. Should have stayed clear. The Vardy shareholders may have been winners but Reg Vardy Plc has been torn apart. Caution.
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spongy - 06/01/2014 16:49

Problem Forester has is that he buys up poor franchses and weak sites and ongoing aquistion muddy's the numbers. Thier Land Rover business will account fo the majority of profit but he has a lot which don't add up
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