Our ambitious growth journey is underpinned by two huge opportunities: extending our global leadership in automotive distribution and capturing more of a vehicle’s lifecycle value. We are well-positioned to deliver sustainable long-term value through organic growth, market consolidation and cash generation.
Duncan Tait Group CEO
Revenue
£11.4bn
Operating margin
5.8%
Profit before tax and adjusting items
£502m
Free cash flow
£498m
Return on capital employed
26%
Investment proposition:
Driving scale and diversification
We have set ambitious targets to grow our business responsibly,
seeking to create significant value for all of our stakeholders.
Capital allocation policy:
A disciplined approach
Inchcape is the global leader, with an ambition to be both better and bigger
1. The leading automotive distributor in a highly fragmented global market
- Presence across >40 markets; covering six continents
- We are the leader with c.2% share of the global distribution market
- Market consolidation is expected to accelerate
2. Uniquely positioned to capture more of a vehicle’s lifetime value
- Higher margin activities; accounts for 75% of the profit-pool of a vehicle’s life
- Currently significantly underserved by Inchcape
- Clear opportunity to leverage our existing footprint
3. Expanding the reach of our plug-and-play global distribution platform
- Well invested operating model a catalyst for further expansion
- Existing portfolio of >50 OEM brands; continuing to add new partners
- Constantly sharing expertise across the Group
4. Growth ambition underpinned by our ESG strategy: Responsible business
- Responsible Business integral to our Accelerate strategy
- Established four priority areas: Planet, People, Places, Practices
- Due consideration for all stakeholders
5. Our digital and data capability is a significant competitive advantage
- Created a leading digital and analytical platform
- Global scale, and internal capability a key differentiator
- Our technological progress is impressing OEM brands
6. Delivering value through organic growth, consolidation and cash returns
- Distribution markets have higher growth prospects than average
- Leveraging our global scale to improve profitability
- Highly attractive returns (c.26% ROCE) and capital allocation