Pre-close trading statement

Inchcape PLC
15 December 2003

Monday 15 December 2003


Inchcape pre-close trading statement and update on VAT reclaim

Trading statement

Inchcape plc, the international automotive services group, enters a close period
on 1 January 2004 ahead of its preliminary results announcement, for the year
ended 31 December 2003, on 1 March 2004.

Since our last update, issued on 4 August 2003, trading in a number of our
markets has been more favourable than anticipated.

The UK is trading broadly in line with our expectations.

In both Greece and Belgium the markets, whilst down on last year, are better
than we predicted and trading remains strong.  Greece has benefited from a
one-off income in its financial services business of c. £2.3m.

In Australia the market is heading for a record year, and new products launched
in October 2003 have been well received.

The expected gradual recovery in consumer confidence in Hong Kong is starting to
impact the car market.  Whilst profits will be lower than last year, the second
half should be higher than the first half.

In Singapore the Group has continued to experience a strong trading performance
aided by a better than expected market following the Government's recent
decision to issue more Certificates of Entitlement.

Group costs will benefit from a one-off credit of c. £2.4m relating to the
liquidation of a closed overseas pension fund.

Excluding the impact of the one-offs noted above, profit before tax* is expected
to be slightly ahead of the current market consensus of £127.7m.  The tax rate
will be lower than last year's as it benefits from a recent ruling in relation
to a tax efficient financing structure.

* Profit before tax, goodwill amortisation and exceptionals.



VAT reclaim

Following changes in case law the Group submitted a retrospective VAT claim in
late June 2003 for the recovery of overpaid VAT.  Negotiations with HM Customs &
Excise continue, and whilst progress has been made the claim has yet to be
finalised.  Inchcape expects a final settlement of at least £30.0m, including
interest.  However, the status of the negotiations is such that it is difficult
to predict the final outcome with any certainty.

- Ends -

Notes to editors

Inchcape, as an international automotive services group, provides quality
representation for its manufacturer partners, a choice of channels to market and
products for its retail customers and a range of business services for its
corporate customers. Operations are focused on the UK, Greece, Belgium,
Australia, Hong Kong and Singapore. Our key manufacturer partners are Toyota/
Lexus, Subaru, Ferrari/Maserati, BMW and the Premier Automotive Group of Ford.
Inchcape's activities include exclusive Import, Distribution and Retail,
Business Services, automotive E-commerce and Financial Services.


For further information, please contact:

Group Communications
020 7546 0022

John Olsen/Tom Leatherbarrow, Hogarth Partnership Limited
020 7357 9477

For further information, visit us at www.inchcape.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange