Half-year Results

Inchcape PLC

28 July 2026

 

Inchcape plc, the leading global automotive distributor, announces its interim results for the six months to 30 June 2026

Delivering against strategy, share buyback programme increased to £250m,

expecting EPS growth of >10% in FY 2026

Duncan Tait, Group Chief Executive, commented:

"Inchcape continued to deliver on our Accelerate+ strategy during the first half of 2026, supported by our diversified and scaled market and brand portfolio, with our volume growth of 9% driven by distribution contracts won in recent years. We also made meaningful strategic progress, winning five new distribution contracts so far this year and completing a value-accretive acquisition in Bulgaria. We delivered positive momentum in the Americas, with supportive market conditions, and continued outperformance in Europe & Africa. In APAC, we saw a stabilising position in Asia, while our market share in Australia was weaker. We are making good progress on our management actions in APAC, with a focus on cost reduction, enhanced collaboration with our OEM partners and portfolio optimisation, including exiting 13 immaterial and dilutive contracts across the region.

Looking ahead, we expect to deliver a year of strong adjusted EPS growth in FY 2026, reflecting currency tailwinds and value-accretive M&A, with a stable performance, on a constant currency basis. As previously guided, our performance will be weighted to the second half due to the usual seasonality in the Americas and improved product availability and mix, as well as the benefits of management actions, in APAC. These factors support our updated view of higher levels of organic volume growth and FCF generation for the year. With our financial performance for the year in mind, and supported by our current share buyback programme, increased to £250m today, we remain confident in growing adjusted EPS by >10% this year, in line with our medium term guidance."

Good progress amid evolving market backdrop:

•    Inchcape volumes¹ up 9%, driven by contract wins, with TIV² in Inchcape markets up 8%

•    Organic revenue growth³ of 5%; reported revenue growth of 9%, up 7% at constant currency⁴, to £4.7bn, driven by supportive market conditions and contribution from contracts won in recent years

•    Adjusted operating profit¹ of £248m down (2)% in constant currency and adjusted operating margins⁴ down (40)bps to 5.3%, driven by headwinds in APAC, particularly Australia, partly offset by margin expansion in the Americas and Europe & Africa

•    Adjusted PBT⁴ down (6)% to £188m, due to higher finance costs. Statutory PBT down (33)% to £124m, reflecting £64m of adjusting items, primarily relating to restructuring costs, mainly in APAC

•    Five distribution contract wins so far this year and continued growth from existing contract base, exiting 15 immaterial, dilutive contracts across the Group (these contracts represent new vehicle volumes of c.5,000 in FY 2025, equivalent to c.1.5% of the Group's total new vehicle volumes)

Performance reflects Inchcape's diversified and scaled market and brand portfolio:

•    Americas - organic revenue growth³ of 13%, adjusted operating margins⁴ of 6.5% (up 60 basis points at constant currency⁴) - continued positive momentum, with supportive conditions

•    APAC - organic revenue decline³ of (7)%, adjusted operating margins⁴ of 3.5% (down (320) basis points at constant currency⁴) - stabilising position in Asia, weak Australia. Good progress in implementing management actions to reduce costs, optimise our contract portfolio and enhance OEM collaboration, with margin benefits expected to come through in H2

•    Europe & Africa - organic revenue growth³ of 7%, adjusted operating margins⁴ of 5.1% (up 20 basis points at constant currency⁴) - underlying market outperformance, growth from contracts and acquisitions 

•    Some short term supply disruption in the Americas and Europe & Africa, related to Middle East situation

Strong balance sheet and free cash flow performance supports our disciplined approach to capital allocation:

•    Leverage⁴ of 0.5x net debt / EBITDA; FCF conversion⁴ of 65% to PAT during the period; FCF⁴ of £84m and ROCE⁴ of 31%

•    Completion of acquisition of Silver Star, Mercedes Benz distributor in Bulgaria, with continued focus on M&A  

•    Today announcing £75m increase to current share buyback programme to £250m

•    Interim DPS of 10.8p, up 14%

Guidance for FY 2026 - a year of strong adjusted EPS⁴ growth expected:

•    Adjusted EPS⁴ growth of >10%, in line with medium term guidance, driven by:

◦      Organic volume growth³  at top end of 3% - 5% guidance range  

◦      Adjusted operating margins⁴ of c.6%, supported by scale and cost discipline 

◦      Free cashflow conversion⁴ of >100%

◦      Disciplined approach to capital allocation, including increased share buyback and recent value-accretive acquisitions

•    A year of growth, supported by Inchcape's diversified portfolio:

◦      Reflecting translational currency tailwinds (at prevailing exchange rates) and value-accretive M&A

◦      A stable performance, at constant currency, with positive momentum in Americas and Europe & Africa, Asia stabilising, offsetting a weak Australia

•    H2-weighted performance in FY 2026: 

◦      New vehicle volumes expected to increase c.20k in H2, from c.180k in H1 2026 - similar volume step-up in H2 2025

◦      Americas - usual H2-weighted seasonality

◦      APAC - volumes & margins supported by improved product availability and mix, with margin benefits from management actions

◦      Europe & Africa - stable H2 performance, compared to H1 

in £m, unless otherwise stated	H1 2026	H1 2025	% change reported	% change constant FX4	% change organic3	% change volume1
Key financials (continuing operations)
Revenue	£4,722m	£4,320m	+9%	+7%	+5%	+9%
Adjusted Operating Profit4	£248m	£247m	-%	(2)%
Adjusted Operating Margin4	5.3%	5.7%	(40)bps	(50)bps
Adjusted Profit Before Tax4	£188m	£200m	(6)%	(10)%
Adjusted Basic EPS4	35.5p	35.5p	- %
Dividend Per Share	10.8p	9.5p	+14 %
Free Cash Flow4	£84m	£72m	+17%
Reported financials
Operating Profit (continuing operations)	£184m	£233m	(21)%
Operating Margin (continuing operations)	3.9%	5.4%	(150)bps
Profit Before Tax (continuing operations)	£124m	£186m	(33)%
Total profit for the period	£81m	£129m	(37)%
Basic EPS (continuing operations)	23.3p	32.4p	(28)%
Net cash generated from operating activities	£127m	£112m	+13%

1.   Inchcape new volumes include Askja acquisition in Iceland

2.   Total Industry Volumes in Inchcape markets, excluding Thailand and Argentina, which are substantial markets where Inchcape volumes are immaterial

3.   Organic growth is an Alternative Performance Measure and is defined as growth in operations that have been open for at least a year at constant foreign exchange rates,  includes contract wins and excludes acquisitions including Askja in Iceland. In 2025, we disposed of a non-core retail business in Australia which has been removed from the comparative period. See Note 14 APMs

4.   These measures are Alternative Performance Measures, see Note 14

Results presentations

A live webcast of the presentation including Q&A will be held today, Tuesday 28th July 2026, at 8:30am BST for investors and analysts. To register for the webcast of the event please follow https://brrmedia.news/INCH_H126, or to register for conference call access please dial in.

Dial in details (UK wide): [phone] Toll Free: 0808 109 0700

Password (if prompted): Quote 'Inchcape H1 2026' when prompted by the operator.

A replay of the analyst presentation will be available via the Company's website, www.inchcape.com later today.

Dividend timetable
Ex-dividend date for 2026 interim dividend	6 August 2026
Record date	7 August 2026
Last election date	21 August 2026
Payment date	14 September 2026

Financial calendar
Q3 trading update	22 October 2026

Contacts

Inchcape plc (investor enquiries):
Rob Gurner		[phone]	[e-mail]
Krishma Arora
FTI Consulting (media enquiries):
Richard Mountain		[phone]	[e-mail]
Ben Fletcher

About Inchcape

Inchcape is the leading global automotive distributor, with operations across six continents. Inchcape works with our mobility company partners in smaller, more complex and harder-to-reach markets, which tend to be higher growth with low motorisation rates. By combining our in-market expertise with our unique technology and advanced data analytics, we create innovative customer experiences that deliver outstanding performance for our partners - building stronger automotive brands and creating sustainable growth.

Our distribution platform connects the products of mobility company partners with customers, and our responsibilities span product planning and pricing, import and logistics, brand and marketing to operating digital sales, managing physical sales and aftermarket service channels. Our ambition is to deliver for our partners, our customers and our people - so they can realise their ambitions in the new world of mobility. The Group is headquartered in London and employs over 16,000 people globally.

www.inchcape.com

Our results are stated at actual exchange rates. However, to enhance comparability we also present year-on-year changes in revenue, adjusted operating profit and adjusted profit before tax in constant currency, thereby isolating the impact of translational exchange rate effects.

Operational review

Key performance indicators

in £m, unless otherwise stated
Key financials (continuing operations)	H1 2026	H1 2025	% change reported	% change constant FX1	% change organic2	% change volume3
Revenue	£4,722m	£4,320m	+9%	+7%	+5%	+9%
Adjusted Operating Profit1	£248m	£247m	-%	(2)%
Adjusted Operating Margin1	5.3%	5.7%	(40)bps	(50)bps
Adjusted Profit Before Tax1	£188m	£200m	(6)%	(10)%
Free Cash Flow1	£84m	£72m	+17%
Return on Capital Employed1	31%	27%	+400bps

1.   These measures are Alternative Performance Measures, see Note 14 

2.   Organic growth is an Alternative Performance Measure and is defined as growth in operations that have been open for at least a year at constant foreign exchange rates,  includes contract wins and excludes acquisitions including Askja in Iceland. In 2025, we disposed of a non-core retail business in Australia which has been removed from the comparative period. See Note 14 APMs

3.   Inchcape new volumes include Askja acquisition in Iceland

H1 2026 results - performance review

Inchcape made good progress against our Accelerate+ strategy during H1 2026, supported by our diversified and scaled market and brand portfolio, with further organic growth from distribution contracts won in recent years. 

Group revenue of £4.7bn, up 9% on a reported basis, up 7% on a constant currency basis and up 5% organically. This reflected good performances from our Americas and Europe & Africa regions, with a stabilising position in Asian markets, while our market share  in Australia was weaker.  

Adjusted operating profit¹ of £248m was down (2)% in constant currency, with adjusted operating margins¹ down by (40)bps to 5.3% (H1 2025: 5.7%), reflecting our diversified geographic portfolio and changes in revenue and profit weightings between the regions. Overheads ratio¹, represented as the ratio of adjusted net operating expenses to revenue, were lower at 11.0% (H1 2025: 11.3%), benefitting from cost discipline across the Group and operating leverage in certain markets, particularly in the Americas. Adjusted net finance costs¹ increased to £62m (H1 2025: £48m), driven by higher interest rates, increased levels of inventory financing and the impact of currency timing in the prior year.

Adjusted profit before tax¹ was down (10)% in constant currency, and down (6)% on a reported basis, to £188m, due to the higher net finance costs and lower levels of profits in APAC. Adjusted basic EPS¹ was unchanged at 35.5p, reflecting the Group's profit performance offset by the benefit of  share buybacks.

Pre-tax adjusting items amounted to an expense of £64m (H1 2025: £14m). This was driven by one-off costs related to acquisition and integration of £(2)m (H1 2025: £(4)m), and restructuring costs of £(62)m (H1 2025: £(6)m). These restructuring costs included £28m relating to the derecognition of distribution contracts that are being exited, £12m of inventory write-downs, £22m of costs related to site exits and headcount reduction, particularly in APAC. After adjusting items, reported profit before tax was £124m (H1 2025: £186m).

Free cash flow¹ was £84m (H1 2025: £72m), representing a FCF conversion¹ of adjusted profit after tax¹ to free cash flow¹ of 65% (H1 2025: 51%) and 112% over the last 12 months (from 30 June 2025 to 30 June 2026). There was a working capital outflow during the first six months of the year of £31m (H1 2025: outflow of £53m), due to the timing of payments for inventory. Inventory was unchanged at £2,043m (FY 2025: £2,043m; H1 2025: £2,149m).

As at 30 June 2026, Group adjusted net debt¹ amounted to £329m (excluding lease liabilities). Free cash flow¹ of £84m was more than offset by cash outflows of £(164)m relating to dividends and share buybacks and £15m relating to FX and other items. Including lease liabilities, the Group ended the period with net debt of £672m (H1 2025: net debt of £656m). The Group's balance sheet remains robust, with leverage¹ of approximately 0.5x adjusted net debt¹: adjusted EBITDA¹ at 30 June 2026, down from 0.6x at 30 June 2025 and up from 0.4x at the end of 2025. Return on capital employed¹ during the period was 31%, an increase of 400 basis points from H1 2025.

Q2 2026 performance

Q2 2026 Group revenue was up 10% on a reported basis, and up 6% in constant currency¹, to £2.4bn, including 5% organic growth². This was supported by continued positive momentum in the Americas and a strong performance in Europe and Africa, partly offset by a weaker performance in Australia.

1.         These measures are Alternative Performance Measures, see Note 14

Strategic overview

In an evolving automotive industry, with the rise of emerging OEMs, increasing cross-industry collaboration and the on-going transition to New Energy Vehicles, Inchcape continues to be agile and adaptable for our OEM partners, particularly as they become  more focused on efficiencies and supply chain optimisation. With our diversified and scaled business, Inchcape continues to develop our OEM partner portfolio and geographic footprint, and thereby enhance the resilience in our earnings profile, and drive progress against our ambition to achieve 10% market share in our markets.

Scaling our distribution contract portfolio

During H1 2026, we continued to grow our base of distribution contracts through acquisitions and contract wins and we delivered further growth from contracts won in previous years. We have won five new distribution contracts so far this year - Subaru and XPENG in Brunei, Volvo in Ecuador, Deepal in Barbados and GAC AION in Romania. These wins highlight our essential role as a critical partner for OEMs, driving their market share and volume growth.

Optimising across our business

We continued to optimise our business in a number of ways during the period. This was particularly the case in APAC, where we are significantly rationalising our brand portfolio, exiting 13 immaterial and dilutive contracts with Stellantis brands in Australia and the Philippines, as well as Mazda in that market, KGM and LDV in New Zealand and Ora in Hong Kong, with our business in Thailand classified as an asset held-for-sale. We expect further contract exits in H2 and we are reducing headcount across the region. With our OEM partners across APAC, we took a refreshed approach to product mix, launching and re-pricing 16 models in markets across the region. We also exited two contracts in the Americas - Renault in Chile and XCMG in Colombia. In total, these 15 contracts represented approximately 5,000 new vehicles, equivalent to approximately 1.5% of the Group's total new vehicle volumes in FY 2025.

We continued to drive the penetration of Value-Added Services in our regions, in particular aftersales and Finance & Insurance.

Capital allocation - our disciplined approach

Inchcape's capital allocation policy remains focused on creating shareholder value in a disciplined way, with dividends at 40% of adjusted basic EPS, a commitment to ongoing share buybacks and value-accretive acquisitions.

Following the completion of our £250m share buyback programme in March 2026, the Group initiated a new £175m buyback programme in March 2026. Today, we are increasing this programme by £75m to £250m, underlining our ongoing commitment to share buybacks, and highlighting the capacity on our balance sheet. The programme is expected to be completed by the end of February 2027.

On 1 July 2026, we completed the acquisition of Silver Star, the distributor of Mercedes Benz and Daimler Trucks in the fast-growing market of Bulgaria. This acquisition diversifies our business in Bulgaria, increasing our brand portfolio there, and drives our market share to 16% in passenger vehicles. We will continue to focus on value-accretive M&A to drive growth.

The Board is proposing an interim dividend of 10.8p (H1 2025: 9.5p). As per our dividend policy, the interim dividend represents one-third of the total dividend paid from the previous FY 2025 full year.

Outlook for FY 2026 - a year of strong adjusted EPS growth expected, in line with medium term guidance

The Group expects to deliver adjusted EPS growth of >10%, in line with our medium term guidance, driven by organic volume growth at top end of our 3% - 5% guidance range, adjusted operating margins of c.6%, supported by scale and cost discipline, and free cashflow conversion of >100%. This will continue to be supported by our disciplined approach to capital allocation, with an increased share buyback programme in FY 2026 and the contribution of recent value-accretive acquisitions.

Supported by Inchcape's diversified portfolio, we expect to deliver a year of growth in FY 2026. This reflects translational currency tailwinds (at prevailing exchange rates) and value-accretive M&A. We expect a stable performance, at constant currency, with positive momentum in the Americas and Europe & Africa, as well as a stabilising Asia, offsetting a weak Australia.

We continue to expect that our performance in FY 2026 will be H2-weighted, with an anticipated uplift in new vehicle volumes of c.20,000 vehicles in H2, from c.180,000 vehicles distributed by Inchcape in H1. This is a similar volume uplift, from H1 to H2, to what was achieved last year.

The H2 volume uplift in FY 2026 will be driven by the usual H2-weighted seasonality in the Americas. In APAC, our H2 volumes & margins will be supported by an improved product availability and mix, with margin benefits also coming through from the management actions being taken in that region. We expect a stable H2 performance in Europe and Africa, compared to the first half, with that region's typical first half-weighted seasonality offset by the contribution of the Silver Star acquisition in H2.

Operating and financial review

	H1 2026	H1 2025	% change reported	% change constant FX	% change organic2	% change volume3
	£m	£m
Revenue
APAC	1,112	1,227	(9)%	(10)%	(7)%	(16)%
Europe & Africa	1,848	1,582	17%	14%	7%	13%
Americas	1,762	1,511	17%	13%	13%	18%
Total	4,722	4,320	9%	7%	5%	9%
Adjusted operating profit1
APAC	39	79	(51)%	(53)%
Europe & Africa	94	78	21%	19%
Americas	115	90	28%	25%
Total	248	247	-%	(2)%
Adjusted operating margin1
APAC	3.5%	6.4%	(290)bps	(320)bps
Europe & Africa	5.1%	4.9%	20bps	20bps
Americas	6.5%	6.0%	50bps	60bps
Total	5.3%	5.7%	(40)bps	(50)bps

See Note 2 for segmental definitions.

Americas (37% of revenue and 46% of adjusted operating profit) - continued positive momentum, with supportive conditions

Market volumes were up 21%, while organic revenue² growth was up 13%, supported by strong market growth in Peru and Colombia and a good performance in Chile, highlighting the benefits of our scaled and diversified brand portfolio. Adjusted operating margins¹ were up 50 basis points to 6.5% reflecting resilient gross margins, operating leverage from higher volumes and cost discipline. For FY 2026, the Group expects the environment in key markets to remain supportive, driving further momentum and profitable growth, with the typical seasonal weighting towards the second half.

APAC (24% of revenue and 16% of adjusted operating profit) - stabilising position in Asia, weak Australia

Market volumes were up 4%, while Inchcape's organic revenue² declined (7)%. There was a stabilising of our position in Asia, supported by the impact of management actions. However, Australia delivered a weak performance, as a result of a number of factors. There was significant fuel disruption, both on price and availability, which drove a rapid shift by consumers towards lower priced vehicles as well as NEV products. Our key brand partner's performance in Australia was further impacted by supply constraints effecting our product mix and competitiveness, leading to operational underperformance.  As a result of lower revenues and gross margin compression, particularly in Australia, adjusted operating margins¹ contracted by 290 basis points to 3.5%. We made good progress on management actions, including a cost reduction programme for the region. We are exiting 13 immaterial distribution contracts, which contribute revenue of c.£140m on an annualised and aggregated basis, with those contracts being dilutive to profitability. For FY 2026, we expect that management actions, including further contract exits and a reduced cost base, will positively impact H2 margins and free cash flow, and will enhance our product range across the region. Asian markets will continue to stabilise but we expect on-going competitiveness in key markets. Australia is expected to remain weak, but our second half performance will be supported by the impact of management actions, improved product availability and mix from our key OEM partner.

Europe & Africa (39% of revenue and 38% of adjusted operating profit) - underlying market outperformance, supported by growth from contracts and acquisitions

Market volumes were up 4%, with organic revenue² growth of 7%, with total revenue growth of 17% , supported by underlying market outperformance, particularly in Southern Europe, the contribution of contracts won in recent years and the impact of the acquisition in Iceland. Adjusted operating margins¹ were up 20 basis points to 5.1%, with gross margin resilience and scale offsetting margin dilution from early stage contracts and minorsupply disruption in Africa, related to the Middle East situation. For FY 2026, we expect a stable H2 performance, compared to H1. We anticipate continued operational execution and momentum, with further growth from contract wins and the impact of the Silver Star acquisition in Bulgaria in H2, which competed on 1st July, offsetting the regions typical H1-weighted seasonality.

1.   Operating profit and operating margin are stated before adjusting items. Note 14 APMs

2.   Organic growth is an Alternative Performance Measure and is defined as growth in operations that have been open for at least a year at constant foreign exchange rates,  includes contract wins and excludes acquisitions including Askja in Iceland. In 2025, we disposed of a non-core retail business in Australia which has been removed from the comparative period. See Note 14 APMs

3.   Inchcape new vehicles volumes include Askja acquisition in Iceland

Gross profit split

We provide disclosure on the split of our gross profit, including:

•    Gross profit attributable to Vehicles: New Vehicles, Used Vehicles and income from finance and insurance products; and

•    Gross profit attributable to Aftersales: Service and Parts

	H1 2026	H1 2025	% change reported	% change constant FX
	£m	£m
Adjusted Gross Profit (from continuing operations)
Vehicles	532	513	4%	-%
Aftersales	234	220	6%	5%
Total	766	733	5%	2%

During the year, the Group generated 31% of gross profit from aftersales (H1 2025: 30%), which grew by 5% on a constant currency basis, despite a lower contribution from our aftersales businesses in Africa, as a result of supply disruption relating to the Middle East situation, during the period.

Other financial items

Tax: The income tax charge of £45m (H1 2025: £57m) represented an effective tax rate of 36.3% (H1 2025: 30.6%). The effective tax rate on adjusted profit before tax is 31.4% (H1 2025: 29.5%), which was higher than the prior year, due to geographic mix, and slightly above our guidance range of 30% to 31%.

Non-controlling interests: Losses attributable to our non-controlling interests amounted to £(4)m (H1 2025: profits of £4m). Before adjusting items, in particular the derecognition of contract exits relating to one of our non-controlling interests, profits from non-controlling interests amounted to £3m. The Group's non-controlling interests comprise a 40% interest in the Group's Distribution operations in the Philippines and a 30% holding in the Mercedes-Benz distribution business in Indonesia. Other significant non-controlling interests include a 30% share in NBT Brunei and a 10% share of Subaru Australia.

Dividend: The Board has declared an interim dividend of 10.8p per ordinary share which will be paid on 14 September 2026 to shareholders on the register at close of business on 7 August 2026. The Dividend Reinvestment Plan is available to ordinary shareholders and the final date for receipt of elections to participate is 21 August 2026.

Capital expenditure: in H1 2026, the Group incurred net capital expenditure of £15m (H1 2025: £8m), consisting of £16m gross capital expenditure (H1 2025: £16m) and £1m of proceeds from the sale of property (H1 2025: £8m).

Financing: As at 30 June 2026, the funding structure of the Group is comprised of a committed syndicated revolving credit facility of £900m (2025: £900m), sterling Private Placement Loan Notes totalling £140m (2025: £140m), and a five-year bond of £350m, at a fixed coupon of 6.5%. As at 30 June 2026 the syndicated revolving credit facility was drawn £180m (2025: £20m). Excluding the Revolving Credit Facility, all of the Group's corporate debt is fixed rate and the first tranche is not due to be repaid before May 2027. The Group continues to operate comfortably within its debt covenants.

Pensions: As at 30 June 2026, the IAS 19 net post-retirement surplus was  £19m (2025: £21m), driven by changes in demographic and financial assumptions affecting pension scheme liabilities and movements in asset values.

Foreign currency translation: The impact of foreign currency translation on adjusted profit before tax was 4%, driven by the strengthening of a range of currencies against the GBP (see following page for sensitivity analysis).  The impact of foreign currency translation on the assets and liabilities of the Group's foreign operations resulted in a gain of £32m (H1 2025: loss of £(149)m) which has been reported within other comprehensive income.

Key translational foreign exchange pairings and underlying adjusted profit before tax sensitivity:

The Group operates in around 40 markets globally and therefore has a broad range of translational currency exposures against GBP, its reporting currency. The Group's major currency pairs are the Euro, the Australian Dollar, the US Dollar, the Chilean Peso and the Colombian Peso. At prevailing rates, for FY 2026, a 1% movement in any of these currencies would have an impact on the Group's annual underlying adjusted profit before tax of approximately £1m. Other key currency pairs are the Hong Kong Dollar, and the Singaporean Dollar. At prevailing rates, for FY 2026, a 1% movement in any of these currencies would have an impact on the Group's annual underlying adjusted profit before tax of less than £0.5m. Adjusted profit before tax from all of these currencies contributes around 80% of the Group's adjusted profit before tax.

RISKS

The Group continues to actively manage its principal risks and uncertainties through the delivery of the Group's Accelerate+ strategy. These risks remain unchanged and broadly include margin pressure, macroeconomic and geopolitical uncertainty, supply chain disruption, cyber and IT resilience, people retention and future skills, strategy execution and transformation delivery, health and safety, regulatory compliance, and the ongoing transition to electric vehicles. The Group continues to remain vigilant against increased competitive pressures and an uncertain geopolitical and macroeconomic environment and the potential impact on supply chains. These uncertainties are managed through optimising products and brand mix, and by expanding our global footprint whilst maintaining a disciplined, cost-conscious operating model. Wider HSE, legal, regulatory, cyber and compliance risks are mitigated through robust governance arrangements and established control frameworks.

The Group's risk management framework is embedded across all levels of the organisation and is designed to provide reasonable, though not absolute, assurance against material loss or misstatement. The framework remains agile and responsive, as demonstrated by the Group's focus on stock optimisation, and efficient sales and operational planning, in the wake of the ongoing conflict in the Middle East and the potential impact on global supply chains. Ongoing monitoring practices support the Group with addressing emerging risks associated with Artificial Intelligence, acquisitions, regulatory change, and significant external events.

APPENDIX - REGIONAL BUSINESS MODELS

Americas
Country	Brands
Argentina	Subaru, Suzuki
Barbados¹	Changan, Chrysler, Daimler Trucks, Deepal, Dodge, Freightliner, FUSO, Isuzu, JCB, Jeep, John Deere, Mercedes-Benz, Mitsubishi, Peugeot, Subaru, Suzuki, Western Star
Bolivia	Avatr, Changan, Deepal, JAC Motors, Joylong, Komatsu, Mazda, Renault, Subaru, Suzuki
Chile	Avatr, BMW, BMW Motorrad, Deepal, DFSK, Changan, Great Wall, Hangcha, Harley-Davidson, Haval, Hino, Jaguar, JCB, Komatsu, Land Rover, Landini, Massey Ferguson, Mazda, MINI, Porsche, Rolls-Royce, Seres, Still, Subaru, Suzuki, Volvo
Colombia	Citroen, Develon, DFSK, Dieci, Doosan, DS Automobiles, Great Wall, Hangcha, Hino, JAC Trucks, Jaguar, Komatsu, Land Rover, Liebherr, Linde, Mack, Mercedes-Benz, Seres, smart, Still, Subaru, Suzuki, XPENG
Costa Rica	Avatr, Changan, Deepal, JAC, Suzuki
Ecuador	Freightliner, Forland, Mercedes-Benz, smart, Subaru, Volvo, Western Star
El Salvador	Freightliner, Mercedes-Benz, Western Star
Guatemala	Freightliner, Mercedes-Benz, Western Star
Honduras	Freightliner, Mercedes-Benz, Western Star
Panama	Suzuki
Peru	Avatr, BMW, BMW Motorrad, Changan, Deepal, DFSK, Great Wall, Haval, JAC Motors, Komatsu, Mazda, MINI, Renault, Seres, Still, Subaru, Suzuki, XCMG
Uruguay	Freightliner, Fuso, Mercedes-Benz, smart

1.      Distribution agreements for these brands across a range of Caribbean islands, centred in Barbados

APAC
Country	Brands
Brunei	Lexus, Subaru, Toyota, XPeng
Guam²	BMW, Chevrolet, Lexus, Toyota, Morrico heavy equipment
Hong Kong	Daihatsu, Hino, Iveco, Jaguar, Land Rover, Lexus, Maxus, Toyota
Indonesia	Great Wall, Harley-Davidson, Jaguar, Land Rover, Mercedes-Benz
Macau	Daihatsu, Hino, Jaguar, Land Rover, Lexus, ORA, Toyota
Saipan	Toyota, Lexus
Singapore	BYD Commercial Vehicles, Hino, Lexus, Suzuki, Toyota
Philippines	Changan, Chrysler, Dodge, Harley Davidson, Jaguar, Jeep, Land Rover, Mazda, Mercedes-Benz, Ram
Thailand	Jaguar, Land Rover, Tata Motors
Australia	Citroen, Deepal, Foton, Peugeot, Subaru
New Zealand	KGM, Maxus, Subaru

2. Distribution agreements for these brands across a range of Pacific islands, centred in Guam

Europe & Africa
Country	Brands
Belgium	BYD, Lexus, Toyota
Bulgaria3	Daimler Trucks and Buses, Lexus, Mercedes-Benz, Toyota
Estonia	BMW, BMW Motorrad, BYD, Ford, Jaguar, Land Rover, Mazda, MINI
Finland	GAC, Jaguar, Land Rover, Mazda, XPENG
Greece	GAC AION, Lexus, Toyota
Iceland	Honda, Kia, Mercedes-Benz, smart, XPENG
Latvia	BYD, BMW, BMW Motorrad, Ford, Jaguar, Land Rover, Mazda, MINI
Lithuania	BYD, BMW, BMW Motorrad, Ford, Jaguar, Land Rover, Mazda, MINI
Luxembourg	BYD, Lexus, Toyota
North Macedonia	Lexus, Toyota
Poland	Distribution: Jaguar, Land Rover, XPENG; Retail only: BMW, BMW Motorrad, MINI
Romania	Lexus, Toyota
Djibouti	Changan
Ethiopia	BYD, Hino, New Holland, Suzuki, Toyota
Kenya4	BMW, BMW Motorrad, Changan, Jaguar, Land Rover, New Holland

3. Distribution agreement for Toyota & Lexus also distributed to Albania, centred in Bulgaria. 4. Distribution agreement for Changan also distributed to Tanzania, centred in Kenya, Distribution agreement for BMW also distributed to Djibouti, centred in Kenya and Distribution agreement for Jaguar, Land Rover also distributed to Uganda, centred in Kenya

CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2026

	Continuing operations		Six months to 30 Jun 2026		Six months to 30 Jun 2025
		Notes	£m		£m
	Revenue	2	4,722		4,320
	Cost of sales		(3,968)		(3,587)
	Gross profit		754		733
	Net operating expenses		(570)		(500)
	Operating profit	2	184		233
	Share of profit after tax of joint ventures and associates		2		1
	Profit before finance and tax		186		234
	Finance income	4	34		36
	Finance costs	4	(96)		(84)
	Profit before tax from continuing operations		124		186
	Tax	5	(45)		(57)
	Profit for the period from continuing operations		79		129
	Profit from discontinued operations	9	2		-
	Total profit for the period		81		129
	Profit/(loss) attributable to:
	- Owners of the parent		85		125
	- Non-controlling interests		(4)		4
			81		129
	Earnings per share from continuing operations attributable to the owners of the parent
	Basic earnings per share (pence)	6	23.3p		32.4p
	Diluted earnings per share (pence)	6	23.0p		31.8p
	Earnings per share attributable to the owners of the parent
	Basic earnings per share (pence)	6	23.9p		32.4p
	Diluted earnings per share (pence)	6	23.6p		31.8p
	Alternative performance measures
	Operating profit from continuing operations		184		233
	Adjusting items within cost of sales:	3	12		-
	Restructuring costs		12		-
	Adjusting items within net operating expenses:	3	52		14
	Acquisition and integration costs		2		4
	Disposal of businesses		-		4
	Restructuring costs		50		6
	Adjusted operating profit from continuing operations		248		247
	Share of profit after tax of joint ventures and associates		2		1
	Adjusted profit before finance and tax from continuing operations		250		248
	Net finance costs		(62)		(48)
	Adjusted profit before tax from continuing operations		188		200
	Tax on adjusted profit		(59)		(59)
	Adjusted profit after tax from continuing operations		129		141
	Adjusted earnings per share from continuing operations attributable to the owners of the parent
	Basic adjusted earnings per share	6	35.5p		35.5p
	Diluted adjusted earnings per share	6	34.9p		34.9p

See note 14 on page 32 for further details of alternative performance measures.
The notes on pages 16 to 37 are an integral part of these condensed consolidated financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2026

	Six months to 30 Jun 2026	Six months to 30 Jun 2025
	£m	£m
Profit for the period	81	129
Other comprehensive income/(expense):
Items that will not be reclassified to the consolidated income statement
Retirement benefit schemes
- net actuarial losses	(1)	(8)
	(1)	(8)
Items that may be or have been reclassified subsequently to the consolidated income statement
Cash flow hedges
- net fair value losses	(14)	(16)
- tax on cash flow hedges	(5)	3
Foreign currency translation
Exchange differences on translation of foreign operations	32	(149)
	13	(162)
Other comprehensive income/(expense) for the period	12	(170)
Total comprehensive income/(expense) for the period	93	(41)
Total comprehensive income/(expense) attributable to:
- Owners of the parent	99	(40)
- Non-controlling interests	(6)	(1)
	93	(41)
Total comprehensive income/(expense) attributable to owners of Inchcape plc arising from:
- Continuing operations	97	(40)
- Discontinued operations	2	-

The notes on pages 16 to 37 are an integral part of these condensed consolidated financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2026

		As at 30 Jun 2026	As at 31 Dec 2025
	Notes	£m	£m
Non-current assets
Intangible assets		1,176	1,191
Property, plant and equipment		593	581
Right-of-use assets		305	309
Investments in joint ventures and associates		22	22
Financial assets at fair value through other comprehensive income		4	4
Trade and other receivables		64	62
Deferred tax assets		102	99
Retirement benefit asset		25	29
		2,291	2,297
Current assets
Inventories		2,043	2,043
Trade and other receivables		814	772
Derivative financial instruments		31	15
Current tax assets		77	65
Cash at bank and short-term deposits	8b	716	657
Assets held for sale		16	-
		3,697	3,552
Total assets		5,988	5,849
Current liabilities
Trade and other payables		(2,865)	(2,647)
Derivative financial instruments		(76)	(102)
Current tax liabilities		(58)	(65)
Provisions		(43)	(42)
Lease liabilities	8b	(68)	(67)
Borrowings	8b	(478)	(412)
Liabilities directly associated with assets held for sale		(4)	-
		(3,592)	(3,335)
Non-current liabilities
Trade and other payables		(98)	(114)
Provisions		(20)	(20)
Deferred tax liabilities		(244)	(247)
Lease liabilities	8b	(275)	(276)
Borrowings	8b	(569)	(509)
Retirement benefit liability		(6)	(8)
		(1,212)	(1,174)
Total liabilities		(4,804)	(4,509)
Net assets		1,184	1,340
Equity
Share capital		36	37
Share premium		147	147
Capital redemption reserve		149	148
Merger reserve		312	312
Other reserves		(279)	(329)
Retained earnings		746	942
Equity attributable to owners of the parent		1,111	1,257
Non-controlling interests		73	83
Total equity		1,184	1,340

The notes on pages 16 to 37 are an integral part of these condensed consolidated financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2026

	Notes	Share capital £m	Share Premium £m	Capital redemption reserve £m	Merger reserve £m	Other reserves £m	Retained earnings £m	Total equity attributable to owners of the parent £m	Non-controlling interests £m	Total shareholders' equity £m
At 1 January 2025		40	147	145	312	(285)	1,020	1,379	95	1,474
Profit for the period		-	-	-	-	-	125	125	4	129
Other comprehensive expense for the period		-	-	-	-	(157)	(8)	(165)	(5)	(170)
Total comprehensive income/(expense) for the period		-	-	-	-	(157)	117	(40)	(1)	(41)
Hedging gains and (losses) transferred to inventory		-	-	-	-	11	-	11	-	11
Share-based payments, net of tax		-	-	-	-	-	5	5	-	5
Share buyback programme		(2)	-	2	-	-	(252)	(252)	-	(252)
Purchase of own shares by the Inchcape Employee Trust		-	-	-	-	-	(11)	(11)	-	(11)
Dividends:
- Owners of the parent	7	-	-	-	-	-	(66)	(66)	-	(66)
- Non-controlling interests		-	-	-	-	-	-	-	(6)	(6)
At 30 June 2025		38	147	147	312	(431)	813	1,026	88	1,114
Profit for the period		-	-	-	-	-	147	147	(3)	144
Other comprehensive income/(expense) for the period		-	-	-	-	84	-	84	(2)	82
Total comprehensive income/(expense) for the period		-	-	-	-	84	147	231	(5)	226
Hedging gains and (losses) transferred to inventory		-	-	-	-	18	-	18	-	18
Share buyback programme		(1)	-	1	-	-	18	18	-	18
Share-based payments, net of tax		-	-	-	-	-	10	10	-	10
Purchase of own shares by the Inchcape Employee Trust		-	-	-	-	-	(11)	(11)	-	(11)
Dividends:
- Owners of the parent	7	-	-	-	-	-	(35)	(35)	-	(35)
- Non-controlling interests		-	-	-	-	-	-	-	-	-
At 31 December 2025		37	147	148	312	(329)	942	1,257	83	1,340
At 1 January 2026		37	147	148	312	(329)	942	1,257	83	1,340
Profit for the period		-	-	-	-	-	85	85	(4)	81
Other comprehensive income/(expense) for the period		-	-	-	-	15	(1)	14	(2)	12
Total comprehensive income/(expense) for the period		-	-	-	-	15	84	99	(6)	93
Hedging gains and (losses) transferred to inventory		-	-	-	-	35	-	35	-	35
Share buyback programme		(1)	-	1	-	-	(199)	(199)	-	(199)
Share-based payments, net of tax		-	-	-	-	-	6	6	-	6
Purchase of own shares by the Inchcape Employee Trust		-	-	-	-	-	(6)	(6)	-	(6)
Dividends:
- Owners of the parent	7	-	-	-	-	-	(81)	(81)	-	(81)
- Non-controlling interests		-	-	-	-	-	-	-	(4)	(4)
At 30 June 2026		36	147	149	312	(279)	746	1,111	73	1,184

The notes on pages 16 to 37 are an integral part of these condensed consolidated financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2026

		Six months to 30 Jun 2026	Six months to 30 Jun 2025
	Notes	£m	£m
Cash generated from operating activities
Cash generated from operations	8a	265	238
Tax paid		(78)	(81)
Interest received		33	39
Interest paid		(93)	(84)
Net cash generated from operating activities		127	112
Cash flows from investing activities
Acquisition of businesses, net of cash and overdrafts acquired	9a	-	1
Net cash inflow from sale of businesses	9b	1	9
Purchase of property, plant and equipment		(16)	(16)
Proceeds from disposal of property, plant and equipment		1	8
Dividends received from joint ventures and associates		2	1
Receipt from finance sub-lease receivables		1	1
Net cash (used in)/generated from investing activities		(11)	4
Cash flows from financing activities
Share buyback programme		(83)	(154)
Purchase of own shares by the Inchcape Employee Trust		(6)	(11)
Cash inflow from revolving credit facility	8b	160	160
Net cash outflow from other borrowings	8b	(7)	(10)
Payment of capital element of lease liabilities	8b	(38)	(36)
Equity dividends paid	7	(81)	(66)
Dividends paid to non-controlling interests		(4)	(6)
Net cash used in financing activities		(59)	(123)
Net increase/(decrease) in cash and cash equivalents	8b	57	(7)
Cash and cash equivalents at beginning of the period		261	366
Effect of foreign exchange rate changes		31	(27)
Cash and cash equivalents at end of the period		349	332
Cash and cash equivalents consist of:
Cash at bank		649	514
Short-term deposits		67	55
Bank overdrafts		(369)	(237)
Cash and cash equivalents included in disposal groups held for sale	8b	2	-
		349	332

The notes on pages 16 to 37 are an integral part of these condensed consolidated financial statements.

NOTES (UNAUDITED)

1 BASIS OF PRESENTATION AND ACCOUNTING POLICIES

Basis of preparation

The condensed consolidated interim financial statements for the period ended 30 June 2026 have been prepared on a going concern basis in accordance with UK-adopted International Accounting Standard 34 'Interim Financial Reporting' and the Disclosure and Transparency Rules of the Financial Conduct Authority. These condensed consolidated interim financial statements should be read in conjunction with the Annual Report and Accounts 2025, which have been prepared in accordance with UK-adopted International Financial Reporting Standards (IFRS) and the Companies Act 2006 applicable to companies reporting under IFRS.

These condensed consolidated interim financial statements are unaudited but have been reviewed by the external auditors. The condensed consolidated interim financial statements in the Interim Report do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The Group's published consolidated financial statements for the year ended 31 December 2025 were approved by the Board of Directors on 2 March 2026 and delivered to the Registrar of Companies.

The report of the auditors on those accounts was unqualified and did not contain an emphasis of matter paragraph or a statement under section 498 of the Companies Act 2006. The condensed consolidated interim financial statements on pages 11 to 38 were approved by the Board of Directors on 27 July 2026.

Going concern

Based on the Group's cash flow forecasts and projections, the Board is satisfied that the Group will operate within the level of its committed facilities for the foreseeable future. For this reason, the Board continues to adopt the going concern basis in preparing its financial statements. In making this assessment, the Group has considered available liquidity in relation to net debt and committed facilities, the Group's latest forecasts for 2026 and 2027 cash flows, together with adjusted scenarios.

Committed bank facilities and Private Placement borrowings amount to £1,040m, of which £320m was drawn at 30 June 2026. The funding structure of the Group also includes a five-year £350m bond with a coupon of 6.5%, due to mature in June 2028.

The Private Placement loan notes are subject to an interest cover covenant based on an adjusted EBITA measure to interest on consolidated borrowings measured on a trailing 12-month basis at June and December.

The latest Group forecasts for 2026 and 2027 indicate that the Group is expected to be compliant with this covenant throughout the forecast period and have sufficient liquidity to continue operating throughout that period.

A range of sensitivities has been applied to the forecasts to assess the Group's compliance with its covenant requirements over the forecast period. These sensitivities included:

•    a 12-month reduction in New and Used revenue from January 2027, resulting from decreasing consumer demand in response to fiscal tightening and resulting economic downturns;

•    a reduction in reported GBP earnings from July 2026 to December 2027 resulting from strengthening of sterling relative to other currencies;

•    an adverse movement in working capital from January 2027 arising from an increase in inventory and a general liquidity reduction;

•    with no mitigating actions applied in relation to the sensitivities described above.

In a scenario where all of the above sensitivities occur at the same time, the Group has modelled the possibility of the interest cover covenant being breached in 2026 and 2027. With the interest cover covenant measured on a trailing 12-month basis, the sensitised forecasts indicate that the Group is not expected to breach any covenants and would be compliant with the interest cover requirements throughout the forecast period. Additionally, under these circumstances, the Group expects to have sufficient funds to meet cash flow requirements.

A reverse stress test scenario analysis, concluded that a set of circumstances in which the Group would breach its covenant or have insufficient funds to meet cash flow requirements are considered to be remote, relative to the sensitivities referred to above.

Therefore, the Board concluded that the Group will be able to operate within the level of its committed facilities for the foreseeable future. The directors consider it appropriate to adopt the going concern basis of accounting in preparing the condensed consolidated interim financial statements.

Accounting policies

The condensed set of consolidated financial information has been prepared using accounting policies consistent with those in the Group's Annual Report and Accounts 2025 with the exception of the following standards, amendments and interpretations which have been newly adopted from 1 January 2026:

Newly adopted accounting standards

From 1 January 2026, the following standards become effective in the Group's consolidated financial statements:

•    Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments; and

•    Annual improvements to IFRS - Volume 11.

The adoption of the standards and interpretations listed above has not led to any material impact on the financial position or performance of the Group.

The Group has not early adopted other standards, amendments to standards or interpretations that have been issued but are not yet effective.

Standards not yet effective

The following standards were in issue but were not yet effective at the balance sheet date. These standards have not yet been early adopted by the Group, and will be applied for the Group's financial years commencing on or after 1 January 2027:

•    IFRS 18 - Presentation and Disclosure in Financial Statements;

•    IFRS 19 - Subsidiaries without Public Accountability: Disclosures;

•    IFRS 20 - Regulatory Assets and Regulatory Liabilities.

Management is currently reviewing the new standards to assess the potential impact that they may have on the Group's reported position and performance.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of these condensed consolidated interim financial statements in accordance with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge, actual results may ultimately differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

The Directors have made a number of estimates and assumptions regarding the future and made some significant judgements in applying the Group's accounting policies. The critical accounting judgements and key sources of estimation uncertainty remain consistent with those presented in the accounting policies note within the Group's 2025 Annual Report and Accounts. Those that are new or significant to the preparation of the interim financial statements are presented below.

Impairment of goodwill and other indefinite life intangible assets

The carrying amount of goodwill and other indefinite life intangible assets is shown below:

	As at 30 Jun 2026			As at 31 Dec 2025
	Goodwill £m	Indefinite- life intangible assets £m	Total £m	Goodwill £m	Indefinite- life intangible assets £m	Total £m
At 1 January	286	881	1,167	272	852	1,124
Businesses acquired	-	-	-	15	24	39
Derecognition	-	(28)	(28)	-	-	-
Effect of foreign exchange rates	3	12	15	(1)	5	4
At 30 June/31 December	289	865	1,154	286	881	1,167

Goodwill acquired in a business combination is allocated to the cash generating units (CGUs) or group of CGUs (hereafter collectively referred to as 'CGU groups') that are expected to benefit from the synergies associated with that business combination. Indefinite-life intangible assets, principally distribution agreements acquired in a business combination,
are also allocated to the CGUs or CGU groups that are expected to benefit from the cash flows associated with the
relevant agreements.

Indicators of impairment in goodwill and other indefinite-life intangible assets

In accordance with the Group's accounting policy, goodwill and other indefinite-life intangible assets are tested at least annually for impairment and whenever events or circumstances indicate that the carrying amount may not be recoverable.

In the first half of 2026, the Group concluded a review of strategic options in the APAC region and derecognised the carrying value of distribution agreements related to Chrysler, Dodge, Jeep, and RAM (CDJR) in the Philippines and KGM and LDV in New Zealand as a result of brand exits in these markets.

The Group also carried out an assessment as to whether any impairment testing was required to be performed for the six months to 30 June 2026. As set out in IAS 36 Impairment of Assets, the assessment involved the Group reviewing potential indicators of impairment to determine if any of the Group's assets should be tested. The review included examining data trends on asset valuations, reviewing latest macro-economic data including global economic forecasts, reviewing latest industry data including forecasts of industry volumes and comparing the Group's results against cash flows used in previously prepared impairment models and latest forecasts. The conclusion reached from the impairment review performed was that there was no requirement to test any further assets or cash generating units for impairment for the six-month period to 30 June 2026.

At 31 December 2025, the Group's value in use calculations prepared for the cash generating units represented by certain businesses in the Americas and APAC were sensitive to a change in the key assumptions used. The excess of recoverable amount over the carrying value (headroom) of the indefinite-life intangible assets allocated to the following CGUs would be eliminated if any of the individual changes to the key assumptions used in the impairment model were applied. The sensitivities were selected based on the inherent business volatility and the metrics that closely align to the consequences of climate change risks and opportunities detailed on pages 33 to 39 of the 2025 Annual Report and Accounts.

	Americas - Hino	Americas - Ditec	APAC - Indonesia	APAC - Philippines1
Headroom (£m)	32	3	40	26
Decrease in revenue CAGR (bps)	(663)	(96)	(260)	(248)
Decrease in long-term growth rate (bps)	(562)	(27)	(385)	(151)
Increase in pre-tax discount rate (bps)	427	20	312	141

¹Headroom presented is prior to the derecognition of the CDJR distribution agreement intangible asset.

Classification of vehicle funding arrangements

The Group finances the purchase of vehicles using vehicle funding facilities provided by various lenders including the captive finance companies associated with brand partners. In assessing whether the liabilities arising under these arrangements should be classified within trade and other payables rather than as an additional component of the Group's net debt within borrowings, the Group considers a number of factors including whether the arrangement is a requirement of the relationship with the OEM, in relation to specific, separately identifiable vehicles held as inventory and the duration of the finance. Each agreement entered into has its own terms and conditions and determining whether a new or renewed arrangement should be classified within trade and other payables requires significant management judgement (see note 10c).

Adjusting items

The Directors believe that adjusted profit and earnings per share measures provide additional useful information to shareholders on the performance of the business. These measures are consistent with how business performance is measured internally by the Board and Executive Committee. The operating profit before adjusting items and profit before tax and adjusting items measures are not recognised profit measures under IFRS and may not be directly comparable with such profit measures used by other companies. The classification of adjusting items requires significant management judgement after considering the nature and intentions of a transaction. The Group's definitions of adjusting items are outlined within the Group accounting policies and note 3 provides further details on current period adjusting items and their adherence to Group policy.

In the period, the Group has reported an aggregate pre-tax adjusting items expense of £64m (see note 3). The separate reporting of adjusting items helps provide additional useful information regarding the Group's underlying business performance and is used by management to facilitate internal performance analysis. Items that may be considered as adjusting items include gains or losses on the disposal of businesses, restructuring of businesses, acquisition and integration costs, asset impairments and the tax effects of these items. Any reversal of an amount previously recognised as an adjusting item would also be recognised as an adjusting item in a subsequent period.

Alternative performance measures (APMs)

The consolidated income statement presents only IFRS measures which is in line with the basis of preparation disclosed in this note. The alternative performance measures used by the Group are included in note 14. This includes further information on the definitions, purpose and reconciliation to IFRS measures.

2 SEGMENTAL ANALYSIS

The Group has three reportable segments which have been identified based on the operating segments of the Group that are regularly reviewed by the chief operating decision-maker, which has been determined to be the Group Executive Team, in order to assess performance and allocate resources. Operating segments are then aggregated into reporting segments to combine those with similar economic characteristics.

The Group reports the performance of its reporting segments after the allocation of central costs. These represent costs of Group functions.

The following summary describes the operations of each of the Group's reportable segments:

APAC Europe & Africa Americas

Exclusive distribution, sales and marketing activities of New Vehicles and Parts. Sale of New and Used Vehicles together with logistics services where the Group may also be the exclusive distributor, alongside associated Aftersales activities of service, body shop repairs and parts sales.

	APAC	Europe & Africa	Americas	Total
Six months to 30 June 2026	£m	£m	£m	£m
Revenue
Total revenue	1,112	1,848	1,762	4,722
Adjusted operating profit from continuing operations	39	94	115	248
Operating adjusting items				(64)
Operating profit from continuing operations				184
Share of profits after tax of joint ventures and associates				2
Profit before finance and tax				186
Finance income				34
Finance costs				(96)
Profit before tax from continuing operations				124
Tax				(45)
Profit for the period from continuing operations				79

The Group's reported segments are based on the location of the Group's assets. Revenue earned from sales is disclosed by origin and is not materially different from revenue by destination. Chile and Belgium are presented separately as these comprise at least 10% of the Group's revenue. Revenue is further analysed as follows:

Six months to 30 June 2026	£m
Chile	684
Belgium	461
Rest of the world	3,577
Group	4,722

	APAC	Europe & Africa	Americas	Total
Six months to 30 June 2025	£m	£m	£m	£m
Revenue
Total revenue	1,227	1,582	1,511	4,320
Adjusted operating profit from continuing operations	79	78	90	247
Operating adjusting items				(14)
Operating profit from continuing operations				233
Share of profits after tax of joint ventures and associates				1
Profit before finance and tax				234
Finance income				36
Finance costs				(84)
Profit before tax from continuing operations				186
Tax				(57)
Profit for the period from continuing operations				129

The Group's reported segments are based on the location of the Group's assets. Revenue earned from sales is disclosed by origin and is not materially different from revenue by destination. Chile, Australia and Belgium are presented separately as these comprise at least 10% of the Group's revenue. Revenue is further analysed as follows:

Six months to 30 June 2025	£m
Chile	671
Australia	491
Belgium	460
Rest of the world	2,698
Group	4,320

NOTES TO THE FINANCIAL STATEMENTS

3 ADJUSTING ITEMS

	Six months to 30 Jun 2026	Six months to 30 Jun 2025
From continuing operations	£m	£m
Acquisition and integration costs	(2)	(4)
Loss on disposal of business (see note 9b)	-	(4)
Restructuring costs	(62)	(6)
Total adjusting items before tax	(64)	(14)
Tax on adjusting items (see note 5)	14	2
Total adjusting items	(50)	(12)
Adjusting items attributable to:
- Owners of the parent	(43)	(12)
- Non-controlling interests	(7)	-
	(50)	(12)

During the period, operating costs of  £2m (2025: £4m) were incurred in connection with the acquisition and integration of businesses. These costs have been reported as adjusting items to better reflect the underlying performance of the business.

Restructuring  activity is being undertaken by the Group to optimise the Group's operations, against a backdrop of challenging macroeconomic conditions and change within the industry.  Restructuring costs have been incurred:

•    in respect of initiatives focussed on resource levels in markets and at the regional and Group level;

•    in relation to Group-wide transformation projects impacting back-office operations, including a review of organisational structures, internal processes and the physical location of certain operations; and

•    in connection with a strategic review of operations in the APAC region resulting in the exit from distribution contracts which were not expected to be commercially sustainable in the future.

The associated costs of £62m incurred in the period have been recognised as an adjusting item in line with the Group's policy and include £28m in relation to the derecognition of distribution agreement intangible assets and £12m in relation to inventory write-downs, with the balance representing the costs associated with site exits and headcount reduction. Restructuring costs have only been recognised once formal plans are in place and their implementation has commenced or been announced to those affected.  Execution of the Group-wide restructuring activities commenced in 2025 and are expected to complete by the end of the year.

In December 2024, the Group sold its share in the non-genuine spare parts business in Chile and a gain on disposal of £6m was reported as an adjusting item. During 2025, following the finalisation of the completion accounts for the disposal, there was an adjustment of £4m in favour of the buyer. This adjustment to the sale proceeds was reported as an adjusting item for consistency with the amount reported in 2024.

4 NET FINANCE COSTS

	Six months to 30 Jun 2026	Six months to 30 Jun 2025
From continuing operations	£m	£m
Interest expense on bank and other borrowings	53	52
Finance costs on lease liabilities	9	7
Interest on inventory financing	28	25
Other finance costs	6	-
Finance costs	96	84
Bank and other interest receivable	(33)	(33)
Net interest income on post-retirement plan assets and liabilities	(1)	(1)
Other finance income	-	(2)
Finance income	(34)	(36)
Net finance costs	62	48

Other finance costs include fees, commissions and foreign exchange gains and losses.

NOTES (UNAUDITED)

5 TAX

		Six months to 30 Jun 2026	Six months to 30 Jun 2025
From continuing operations		£m	£m
Current tax	- Overseas tax	56	62
	- Pillar 2 income taxes	1	1
Adjustments to prior year liabilities	- Overseas tax	-	1
Current tax		57	64
Deferred tax		(12)	(7)
Total tax charge		45	57
	- Tax charge on profit before adjusting items	59	59
	- Tax credit on adjusting items	(14)	(2)
Total tax charge		45	57

The tax charge for the six months to 30 June 2026 has been calculated by applying the estimated average annual effective income tax rate for each jurisdiction in which Inchcape operates to the interim period pre-tax income of each jurisdiction as required by IAS 34 'Interim Financial Reporting'. Tax credited on adjusting items has been separately calculated and is disclosed above. Details of the adjusting items for the period can be found in note 3.

The effective tax rate for the period to 30 June 2026 is 36.3% compared to 30.6% for the same period last year. The effective tax rate on adjusted profit for the period is 31.4% compared to 29.5% for the same period last year driven by changes in the geographical mix of profits.

The current tax charge for the period to 30 June 2026 includes Pillar 2 top-up tax of £1m (2025: £1m). Of this, £1m (2025: £1m) is domestic top-up tax payable in overseas jurisdictions and £nil (2025: £nil) is payable in the United Kingdom in respect of jurisdictions which have not implemented Pillar 2 legislation.

Factors affecting current and future tax charges

The Group's future tax charge, and effective tax rate, could be affected by several factors including; the resolution of audits and disputes, changes in tax laws or tax rates, repatriation of cash from overseas markets to the UK, the ability to utilise brought forward losses and business acquisitions and disposals. In addition, a change in profit mix between low and high taxed jurisdictions will impact the Group's future tax charge.

The utilisation of brought forward tax losses or changes in the recognition of deferred tax assets associated with such losses may also give rise to tax charges or credits. The recognition of deferred tax assets, particularly in respect of tax losses, is based upon an assessment of whether it is probable that there will be sufficient and suitable taxable profits in the relevant legal entity or tax group against which to utilise the assets in the future. Judgement is required when determining probable future taxable profits. In the event that actual taxable profits are different to those forecast, the Group's future tax expense and effective tax rate could be affected.

The Group has published its approach to tax on www.inchcape.com covering its tax strategy and governance framework.

NOTES TO THE FINANCIAL STATEMENTS

6 EARNINGS PER SHARE

	Six months to 30 Jun 2026	Six months to 30 Jun 2025
	£m	£m
Profit for the period	81	129
Non-controlling interests	4	(4)
Basic earnings	85	125
Profit for the period from discontinued operations	(2)	-
Basic earnings from continuing operations attributable to the owners of the parent	83	125
Adjusting items attributable to owners of the parent	43	12
Adjusted earnings from continuing operations attributable to the owners of the parent	126	137
Basic earnings per share
Basic earnings per share from continuing operations	23.3p	32.4p
Basic earnings per share from discontinued operations	0.6p	-
Total basic earnings per share	23.9p	32.4p
Diluted earnings per share
Diluted earnings per share from continuing operations	23.0p	31.8p
Diluted earnings per share from discontinued operations	0.6p	-
Total diluted earnings per share	23.6p	31.8p
Adjusted earnings per share from continuing operations
Basic Adjusted earnings per share from continuing operations	35.5p	35.5p
Diluted Adjusted earnings per share from continuing operations	34.9p	34.9p

	Six months to 30 Jun 2026	Six months to 30 Jun 2025
	number	number
Weighted average number of fully paid ordinary shares in issue during the period	356,308,080	386,276,551
Weighted average number of fully paid ordinary shares in issue during the period:
- Held by the Inchcape Employee Trust	(1,073,460)	(629,990)
Weighted average number of fully paid ordinary shares for the purposes of basic EPS	355,234,620	385,646,561
Dilutive effect of potential ordinary shares	5,398,983	7,354,128
Adjusted weighted average number of fully paid ordinary shares in issue during the period for the purposes of diluted EPS	360,633,603	393,000,689

Basic earnings per share is calculated by dividing the Basic earnings for the period by the weighted average number of fully paid ordinary shares in issue during the  period, less those shares held by the Inchcape Employee Trust.

Diluted earnings per share is calculated on the same basis as Basic earnings per share with a further adjustment to the weighted average number of fully paid ordinary shares to reflect the effect of all dilutive potential ordinary shares. Dilutive potential ordinary shares comprise share options and other share-based awards.

Basic Adjusted earnings (which excludes adjusting items) is adopted to assist the reader in providing an additional performance measure of the Group. Basic Adjusted earnings per share is calculated by dividing the Adjusted earnings for the period by the weighted average number of fully paid ordinary shares in issue during the period, less those shares held by the Inchcape Employee Trust.

Diluted Adjusted earnings per share is calculated on the same basis as the Basic Adjusted earnings per share with a further adjustment to the weighted average number of fully paid ordinary shares to reflect the effect of all dilutive potential ordinary shares. Information presented for diluted and diluted adjusted earnings per ordinary share uses the weighted average number of shares as adjusted for potentially dilutive ordinary shares as the denominator.

7 SHAREHOLDERS' EQUITY

A. Issue of ordinary shares

As at 30 June 2026, the issued share capital of the Company was 350,378,179 shares (June 2025: 372,227,910 shares; December 2025: 360,828,816 shares).

During the period, the Group issued £nil (June 2025 - £nil, December 2025 - £nil) of ordinary shares exercised under the Group's share option schemes.

Share buyback programme

On 3 March 2026, the Group announced a £175m share buyback programme which was expected to conclude within the next 12 months. During the six months ended 30 June 2026, the Company repurchased 10,450,637 shares at a cost of £87m (June 2025: 22,105,262 shares repurchased at a cost of £150m; December 2025: 33,504,356 shares repurchased at a cost of £234m). The cost of the share buyback has been charged to retained earnings. An amount of £1m (June 2025: £2m; December 2025: £3m), equivalent to the nominal value of the cancelled shares, was transferred to the capital redemption reserve.

The Directors have concluded that as at 30 June 2026, under the terms and conditions of the buyback contract with the Group's broker, the Group was not in a position to cancel the obligation arising under the contract. Accordingly, the Group has recorded a share buyback liability of £112m (June 2025: £102m; December 2025: £nil) for this obligation in accordance with IAS 32 'Financial Instruments: Presentation'. The liability is included within trade and other payables and reflects the maximum liability for the purchase of the Company's own shares through to the conclusion of the Group's close period on 28 July 2026.

B. Dividends

The following dividends were paid to equity holders of the parent:

	Six months to 30 Jun 2026	Six months to 30 Jun 2025	Year to 31 Dec 2025
	£m	£m	£m
Final dividend for the year ended 31 December 2025 of 22.8p per share (2024: 17.2p per share)	81	66	66
Interim dividend for the six months ended 30 June 2025 of 9.5p per share (2024: 11.3p per share)	-	-	35
	81	66	101

An interim dividend of 10.8p per share for the period ending 30 June 2026 was approved by the Board on 27 July 2026 and will be paid on 14 September 2026 to shareholders who are on the register at close of business on 7 August 2026. The Dividend Reinvestment Plan (DRIP) is available to ordinary shareholders and the final date for receipt of elections to participate in the DRIP is 21 August 2026.

8 NOTES TO THE STATEMENT OF CASH FLOWS

A. Reconciliation of cash generated from operations

	Six months to 30 Jun 2026	Six months to 30 Jun 2025
	£m	£m
Cash flows from operating activities
Operating profit - continuing operations	184	233
Adjusting items	64	14
Amortisation including non-adjusting impairment charges	3	4
Depreciation of property, plant and equipment including non-adjusting impairment charges	22	21
Depreciation of right-of-use assets	34	34
Profit on disposal of businesses	-	(5)
Profit on disposal of property, plant and equipment and intangible assets	-	(2)
Gain on changes in right-of-use assets	-	(1)
Share-based payments charge	6	5
Increase in inventories	(75)	(279)
Decrease/(increase) in trade and other receivables	31	(25)
Increase in trade and other payables	13	251
Decrease in provisions	(1)	-
Pension contributions less than pension charge for the period	1	2
Increase in interest in leased vehicles	(4)	(5)
Payments in respect of operating adjusting items	(13)	(9)
Cash generated from operations	265	238

B. Net debt reconciliation

	Liabilities from financing activities				Assets
	Borrowings £m	Leases £m	Sub-total £m		Cash/bank overdrafts £m	Total net debt £m
Net debt at 1 January 2025	(556)	(302)	(858)		366	(492)
Cash flows	(150)	36	(114)		(17)	(131)
Acquisitions	-	-	-		1	1
Disposals	-	-	-		9	9
New lease liabilities	-	(25)	(25)		-	(25)
Foreign exchange adjustments	-	9	9		(27)	(18)
Net debt at 30 June 2025	(706)	(282)	(988)		332	(656)
Cash flows	181	36	217		(86)	131
Acquisitions	-	(41)	(41)		(36)	(77)
Disposals	-	-	-		(3)	(3)
New lease liabilities	-	(46)	(46)		-	(46)
Foreign exchange adjustments	-	(10)	(10)		54	44
Net debt at 1 January 2026	(525)	(343)	(868)		261	(607)
Cash flows	(153)	38	(115)		56	(59)
Disposals	-	-	-		1	1
New lease liabilities	-	(35)	(35)		-	(35)
Foreign exchange adjustments	-	(3)	(3)		31	28
Net debt at 30 June 2026	(678)	(343)	(1,021)		349	(672)

Net debt is analysed as follows:

	As at 30 Jun 2026	As at 31 Dec 2025	As at 30 Jun 2025
	£m	£m	£m
Cash at bank and short-term deposits as per the statement of financial position	716	657	569
Cash and cash equivalents included in disposal groups held for sale	2	-	-
Borrowings - disclosed as current liabilities	(478)	(412)	(239)
Add back: amounts treated as debt financing (see below)	109	16	2
Cash and cash equivalents as per the statement of cash flows	349	261	332
Debt financing
Borrowings - disclosed as current liabilities and treated as debt financing (see above)	(109)	(16)	(2)
Borrowings - disclosed as non-current liabilities	(569)	(509)	(704)
Lease liabilities	(343)	(343)	(282)
Debt financing	(1,021)	(868)	(988)
Net debt	(672)	(607)	(656)
Add back: lease liabilities	343	343	282
Adjusted net debt	(329)	(264)	(374)

Borrowings disclosed as current liabilities include bank overdrafts held in cash pooling arrangements which have not been offset in the consolidated statement of financial position. Bank overdrafts are included within cash and cash equivalents in the consolidated statement of cash flows.

	As at 30 Jun 2026	As at 31 Dec 2025	As at 30 Jun 2025
Cash at bank	649	583	514
Short-term deposits	67	74	55
Bank overdrafts	(369)	(396)	(237)
Cash and cash equivalents included in disposal groups held for sale	2	-	-
	349	261	332

£16m (30 June 2025: £23m; 31 December 2025: £22m) of cash and cash equivalents is held in Ethiopia where prior approval is required to transfer funds abroad, and currency may not be available locally to effect such transfers.

9 ACQUISITIONS AND DISPOSALS

a) Acquisitions

On 22 May 2026, the Group announced that it had agreed to acquire Silver Star, the official distributor of Mercedes-Benz passenger vehicles and Daimler Trucks and Buses in Bulgaria.  The transaction was subject to  customary conditions and approvals and completed on 1 July 2026. The initial consideration of £162m was paid in cash.

On 1 September 2025, the Group completed the acquisition of Askja, a distributor of Mercedes-Benz, Kia and other brands in Iceland. The total consideration was £47m consisting of £35m initial cash consideration and £12m of contingent consideration. Provisional goodwill of £15m was recognised at the date of acquisition. No measurement period adjustments have been recognised in the first half of 2026.

These businesses were acquired to further expand the Group's footprint with both existing and new OEM partners and using our distribution business as a platform to capture more of a vehicle's lifecycle value. Askja contributed £58m of revenue for the year ended 31 December 2025.

b)            Disposals

On 1 August 2024, the Group completed the sale of its UK Retail operations to Group 1 Automotive UK Limited, a wholly-owned subsidiary of Group 1 Automotive, Inc. for a cash consideration of £345m. During 2025, the Group received £4m of deferred consideration relating to the disposal of its UK Retail operations.  In the first half of 2026, the Group settled certain liabilities that arose under business as usual activities resulting in a gain of £2m which has been reported as a discontinued operation, for consistency with the reporting in 2024.

During the first half of 2025, the Group disposed of retail operations in the Americas and Europe, generating net disposal proceeds of £5m. In the first half of 2026, £1m of deferred proceeds was received.

In December 2024, the Group completed the sale of its non-genuine parts business in Chile. During the first half of 2025, following the finalisation of the completion accounts for the disposal, an adjustment of £4m was made in favour of the buyer. This adjustment to the sale proceeds was reported as an adjusting item, for consistency with the amount reported in 2024, and as a net cash outflow from sale of businesses in the consolidated statement of cash flows.

10 FINANCIAL RISK MANAGEMENT

A. Financial risk factors

Exposure to financial risks comprising market risks (currency risk and interest rate risk), funding and liquidity risk and counterparty risk arises in the normal course of the Group's business.

During the six months to 30 June 2026, the Group has continued to apply the financial risk management process and policies as detailed in the Group's principal risks and risk management process included in the Annual Report and Accounts 2025.
The condensed consolidated interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements and further details can be found in note 23 of the Annual Report and
Accounts 2025.

B. Liquidity risk

As at 30 June 2026, the committed funding facilities of the Group comprised a syndicated revolving credit facility of £900m (31 December 2025: £900m), sterling Private Placement Loan Notes totalling £140m (31 December 2025: £140m) and a five-year bond of £350m (31 December 2025: £350m). As at 30 June 2026, £180m of the £900m syndicated revolving credit facility was drawn (31 December 2025: £20m).

The £350m public bond is held at amortised cost and had a fair value of £358m as at 30 June 2026 (30 June 2025: £361m; 31 December 2025: £363m) based on quoted prices. The £140m Private Placement Loan Notes are also held at amortised cost and had a fair value of £138m (30 June 2025: £138m; 31 December 2025: £139m).

The Private Placement borrowings are subject to an interest cover covenant based on an adjusted EBITA measure to interest on consolidated borrowings measured on a trailing 12-month basis at June and December. The Group is required to maintain a ratio of not less than three to one and was compliant with this covenant as at 30 June 2026.

C. Vehicle funding arrangements

The Group finances the purchase of new vehicles for sale and a portion of used vehicle inventories using vehicle funding facilities provided by various lenders including the captive finance companies associated with brand partners. Such arrangements generally are uncommitted facilities and have a maturity of 180 days or less. Amounts due under these vehicle funding arrangements are included within trade and other payables in the consolidated statement of financial position. Related cash flows are reported within cash flows from operating activities in the consolidated statement of cash flows. As at 30 June 2026, the total amount outstanding under such arrangements was £1,840m (31 December 2025: £1,762m).

Vehicle funding facilities are subject to SONIA (or similar) interest rates. The interest incurred under these arrangements is included within finance costs in the consolidated income statement and reported as interest on inventory financing (see note 4). Related cash flows are reported as interest paid in the consolidated statement of cash flows.

D. Fair value measurements

In accordance with IFRS 13, disclosure is required for financial instruments that are measured in the consolidated statement of financial position at fair value. There are no non-recurring fair value measurements. This requires disclosure of fair value measurements by level for the following fair value measurement hierarchy:

•    quoted prices in active markets (level 1);

•    inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly (level 2); or

•    inputs for the asset or liability that are not based on observable market data (level 3).

The following table presents the Group's assets and liabilities that are measured at fair value:

	As at 30 June 2026				As at 31 December 2025
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Assets
Derivatives used for hedging	-	31	-	31	-	15	-	15
Financial assets at fair value through other comprehensive income	-	-	4	4	-	-	4	4
	-	31	4	35	-	15	4	19
Liabilities
Derivatives used for hedging	-	(76)	-	(76)	-	(102)	-	(102)
	-	(76)	-	(76)	-	(102)	-	(102)

Level 1 represents the fair value of financial instruments that are traded in active markets and is based on quoted market prices at the end of the reporting period.

The fair value of financial instruments that are not traded in an active market (level 2) is determined by using valuation techniques which include the present value of estimated future cash flows. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates.

Level 3 primarily represents the Group's equity interest in Hino Motors Manufacturing Company SAS. Fair value is based on discounted free cash flows, using the projection of annual income and expenses mainly based on historical financial figures.

Derivative financial instruments are carried at their fair values. The fair value of forward foreign exchange contracts and foreign exchange swaps represents the difference between the value of the outstanding contracts at their contracted rates and a valuation calculated using the spot rates of exchange and prevailing forward interest rates at 30 June 2026.

The Group's derivative financial instruments comprise the following:

	Assets		Liabilities
	As at 30 Jun 2026	As at 31 December 2025	As at 30 Jun 2026	As at 31 December 2025
	£m	£m	£m	£m
Forward foreign exchange contracts	31	15	(76)	(102)
	31	15	(76)	(102)

NOTES (UNAUDITED)

11 OTHER DISCLOSURES

A. Related Parties

There have been no material changes to the principal subsidiaries and joint ventures as listed in the Annual Report and Accounts for the year ended 31 December 2025. All related party transactions arise during the ordinary course of business and are on an arm's length basis.

There were no material transactions or balances between the Group and its key management personnel or other related parties, including entities connected to Non-Executive Directors, during the six months to 30 June 2026.

B. Contingencies

a) Franked Investment Income Group Litigation Order

Inchcape is a participant in an action in the United Kingdom against HMRC in the Franked Investment Income Group Litigation Order ("FII GLO"). As at 30 June 2026, there were 11 corporate groups in the FII GLO. As previously reported, the High Court held that participants must have submitted their claims before 6 June 2006 in order to recover the unlawful tax for the entire period of their claims. Inchcape submitted a claim on 25 November 2003 and the High Court's judgment means that Inchcape's claim was submitted in time. The Court of Appeal dismissed HMRC's appeal against the High Court's judgment and the Supreme Court refused HMRC permission to appeal on the grounds that HMRC's application did not raise an arguable point of law of general public importance. 

However, there is still separate ongoing litigation with HMRC about how claims should be computed and HMRC's latest appeal on this issue is scheduled to be heard by the Supreme Court in January 2027. Until all elements of the litigation have been concluded and until HMRC agrees to the application of the established principles to Inchcape's own facts and circumstances, and a sealed order for judgement is obtained, there remains ongoing uncertainty about the amounts and the eventual outcome of this litigation. Accordingly, Inchcape has not recognised a contingent asset in respect of its claim.

b) FCA review of Motor Finance commission

In January 2024, the FCA announced a review into historical motor finance commission arrangements. In March 2026, the FCA set out the rules for a motor finance redress scheme to be delivered by lenders. The FCA's redress scheme is subject to legal challenge by various applicants. We await the outcome of the legal challenge and the clarity this will bring for customers, lenders and dealers. Following the Group's disposal of its UK business, the Group's potential exposure to this matter arises from, and is limited to, the terms of the indemnity that it has given to the buyer of that business. It remains possible, though highly uncertain, that the Group may become liable to make certain payments under the terms of that indemnity. However, it is not currently practicable to estimate the quantum or timing of any such outflow given the inherent uncertainties associated with the legal challenge to the FCA's redress scheme and what the alternative may be if the scheme is materially amended or does not proceed as a result.

c) Virgin Media Limited and NTL Pension Trustees II Limited

The Court of Appeal judgement in the case involving Virgin Media Limited and NTL Pension Trustees II Limited cast doubt on the validity of certain historical pension changes which could potentially lead to additional liabilities for some pension schemes and sponsors. The Group has undertaken an initial risk-based assessment of any potential impact on the Inchcape Motors Pension Scheme (IMPS) and the Group and this assessment has, to date, not identified any matters that may give rise to an additional liability. The Group notes that legislation was introduced in the Pension Schemes Act 2026, which received Royal Assent on 29 April 2026, which would allow trustees to obtain a retrospective actuarial confirmation under certain circumstances. Management will continue to monitor developments with the scheme trustees in this regard and the implications, if any, for IMPS.

NOTES TO THE FINANCIAL STATEMENTS

12 FOREIGN CURRENCY TRANSLATION

The main exchange rates used for translation purposes are as follows:

	Average rates				Period-end rates
	30 Jun 2026	30 Jun 2025	31 Dec 2025		30 Jun 2026	30 Jun 2025	31 Dec 2025
Australian dollar	1.92	2.06	2.05		1.92	2.09	2.01
Bolivian boliviano1	12.79	18.72	17.61		13.03	23.74	14.27
Chilean peso	1,204.10	1,243.16	1,254.50		1,221.30	1,279.39	1,211.70
Colombian peso	4.93	5.42	5.34		4.57	5.60	5.08
Ethiopian birr	210.42	169.19	181.75		210.71	186.70	207.97
Euro	1.15	1.19	1.17		1.16	1.17	1.15
Hong Kong dollar	10.54	10.11	10.26		10.37	10.74	10.46
Singapore dollar	1.72	1.72	1.72		1.71	1.74	1.73
US dollar	1.35	1.30	1.32		1.32	1.37	1.34

1.   A parallel rate was used due to limitations in accessing currency at official rates of exchange.

 13 EVENTS AFTER THE REPORTING PERIOD

On 22 May 2026, the Group announced that it had agreed to acquire Silver Star, the official distributor of Mercedes-Benz passenger vehicles and Daimler Trucks and Buses in Bulgaria.  The transaction was subject to  customary conditions and approvals and completed on 1 July 2026. The initial consideration of £162m was paid in cash.

On 27 July 2026, the Board approved a £75m increase to the current share buyback programme.

ALTERNATIVE PERFORMANCE MEASURES

14 ALTERNATIVE PERFORMANCE MEASURES

The Group assesses its performance using a variety of alternative performance measures which are not defined under International Financial Reporting Standards. These provide insight into how the Board and the Group Executive Team monitor the Group's strategic and financial performance, and provide useful information on the trends, performance, and position of the Group. These measures, which are not designed to be a substitute for any of the IFRS measures of performance, may not be directly comparable with other companies' alternative performance measures.

The Group's income statement and segmental analysis identify separately adjusted measures and adjusting items. These adjusted measures reflect adjustments to IFRS measures. The Directors consider these adjusted measures to be an informative additional measure of the ongoing trading performance of the Group. Adjusted results are stated before adjusting items and on a continuing operations basis.

Adjusting items can include gains or losses on the disposal of businesses, restructuring of businesses, acquisition costs, asset impairments and the tax effects of these items. Adjusting items excluded from adjusted results can evolve from one financial period to the next depending on the nature of adjusting items or one-off activities.

Constant currency

Some comparative performance measures are translated at constant exchange rates, called 'constant currency' measures. This restates the prior period results at a common exchange rate to the current period and therefore excludes the impact of changes in exchange rates used for translation.

Performance measure	Definition	Why we measure it
Adjusted gross profit	Gross profit before adjusting items. Refer to the consolidated income statement.	A key metric of the direct profit contribution from the Group's revenue streams (e.g. Vehicles and Aftersales).
Adjusted operating profit	Operating profit before adjusting items. Refer to the consolidated income statement.	A key metric of the Group's business performance.
Adjusted operating margin	Adjusted operating profit divided by revenue.	A key metric of operational efficiency, ensuring that we are leveraging global scale to translate sales growth into profit.
Adjusted profit before tax	Represents the profit made after operating and interest expense excluding the impact of adjusting items and before tax is charged. Refer to the consolidated income statement.	A key driver of delivering sustainable and growing earnings to shareholders.
Adjusted earnings before interest, tax, depreciation and amortisation	Represents the earnings before interest expense, taxation, depreciation and amortisation expenses, excluding the impact of adjusting items, as measured on a pre-IFRS 16 basis.	One of the key measures used in monitoring the Group's leverage and capital allocation.
Adjusting items	Items that are charged or credited in the consolidated income statement which are material and non-recurring in nature. Refer to note 3.	The separate reporting of adjusting items helps provide additional useful information regarding the Group's business performance and is consistent with the way that financial performance is measured by the Board and the Group Executive Team.
Adjusted earnings	Represents profit after tax, excluding the impact of adjusting items and non-controlling interest. Refer to the consolidated income statement.	A key driver of delivering sustainable and growing earnings to shareholders.
Adjusted earnings per share	Represents earnings per share excluding the impact of adjusting items. Refer to note 6.	A measure useful to shareholders and investors to understand the earnings attributable to shareholders without the impact of adjusting items.
Ratio of adjusted net operating expenses to revenue	Adjusted net operating expenses expressed as a proportion of revenue.	A measure of the net overheads of the Group with reference to Group revenue.
Net capital expenditure	Cash outflows from the purchase of property, plant and equipment and intangible assets less the proceeds from the disposal of property, plant and equipment and intangible assets.	A measure of the net amount invested in operational facilities in the period.
Free cash flow and free cash flow from continuing operations	Net cash flows from operating activities, before adjusting cash flows, less normalised net capital expenditure and dividends paid to non-controlling interests. Free cash flow from continuing operations is derived by deducting free cash flow attributable to discontinued operations from total free cash flow.	Free cash flow is a measure of the Group's cash generating capability to pay dividends, carry out share buybacks and invest in value-accretive acquisitions.
Free cash flow conversion	Free cash flow divided by adjusted profit after tax.	Free cash flow conversion is a measure of the success of the Group in converting profit into free cash flow.
Net working capital inflow/(outflow)	The aggregate movement in working capital from continuing operations during the period as measured by the (increase)/decrease in inventories, (increase)/decrease in trade and other receivables and the increase/(decrease) in trade and other payables in the reconciliation of cash generated from operations, adjusted by the net working capital inflow/(outflow) relating to discontinued operations.	A key driver of the Group's free cash flow conversion.
Return on capital employed (ROCE)	Operating profit (before adjusting items) divided by the average of opening and closing capital employed, where capital employed is defined as net assets add net debt/less net funds.	ROCE is a measure of the Group's ability to drive better returns for investors on the capital we invest.
Net (debt)/funds	Cash and cash equivalents less borrowings and lease liabilities adjusted for the fair value of derivatives that hedge interest rate or currency risk on borrowings. Refer to note 8.	A measure of the Group's net indebtedness that provides an indicator of the overall balance sheet strength.
Adjusted (net debt)/net cash	Cash and cash equivalents less borrowings adjusted for the fair value of derivatives that hedge interest rate or currency risk on borrowings and before the incremental impact of IFRS 16 lease liabilities. Refer to note 8.	A measure of the Group's net indebtedness that provides an indicator of the overall balance sheet strength and is widely used by external parties.
Leverage	Adjusted net debt divided by adjusted earnings before interest, tax, depreciation, and amortisation.	A measure of the Group's net indebtedness with reference to adjusted underlying earnings.
Constant currency % change	Presentation of reported results compared to prior period translated using constant rates of exchange.	A measure of business performance which excludes the impact of changes in exchange rates used for translation.
Organic revenue growth	Organic revenue growth is defined as the change in revenue adjusted for the impact of business acquisitions and disposals and currency translation effects, with prior year figures converted with current year exchange rates. Organic revenue growth: •    excludes revenue from businesses acquired in the current year; •    includes revenue from businesses acquired in the prior year from the anniversary of the date of acquisition; •    excludes revenue from businesses disposed of on a pro rata basis; and •    includes revenue from distribution contracts acquired together with the impact of arrangements where the Group no longer acts as the distributor.	Organic revenue growth presents performance on a comparable basis, excluding the impact of foreign currency translation and the impact of acquisition and disposals in the period. Organic revenue growth is a measure of underlying business performance and the Group's ability to grow other than through acquisitions.

APMs: Reconciliation of statement of comprehensive income measures

	Six months to 30 Jun 2026	Six months to 30 Jun 2025
Adjusted profit before tax (from continuing operations)	£m	£m
Gross profit	754	733
Add back: Adjusting items charged to gross profit	12	-
Adjusted gross profit from continuing operations	766	733
Less: Segment operating expenses	(518)	(486)
Adjusted operating profit from continuing operations	248	247
Less: Adjusting items in operating expenses and cost of sales	(64)	(14)
Operating profit	184	233
Less: Net finance costs and JV profits/losses	(60)	(47)
Profit before tax	124	186
Add: Total adjusting Items	64	14
Adjusted profit before tax from continuing operations	188	200
Tax on adjusted profit	(59)	(59)
Adjusted profit after tax from continuing operations	129	141
Ratio of adjusted net operating expenses to revenue	£m	£m
Revenue	4,722	4,320
Adjusted net operating expenses	518	486
Ratio of adjusted net operating expenses to revenue	11.0 %	11.3 %
Adjusted earnings before interest, tax, depreciation and amortisation	£m	£m
Adjusted operating profit from continuing operations	248	247
Add:
Amortisation including non-adjusting impairment charges	3	4
Depreciation of property, plant and equipment including non-adjusting impairment charges	22	21
Depreciation of right-of-use assets	34	34
Depreciation of leased vehicles, rental machinery and equipment	8	10
Payment of capital element of lease liabilities	(38)	(36)
Receipt from finance sub-lease receivables	1	1
Lease interest paid	(9)	(7)
Adjusted earnings before interest, tax, depreciation and amortisation	269	274

APMs: Reconciliation of statement of comprehensive income measures continued

	Six months to 30 Jun 2026	Six months to 30 Jun 2025
Organic growth and constant currency change	£m	£m	YoY%
Revenue	4,722	4,320	9 %
Retranslation at current period rates	-	107
Revenue in constant currency	4,722	4,427	7 %
Organic adjustments	(114)	(48)
Organic revenue	4,608	4,379	5 %

APMs: Reconciliation of statement of cash flows measures

	Six months to 30 Jun 2026	Six months to 30 Jun 2026	Six months to 30 Jun 2025	Six months to 30 Jun 2025
Free cash flow (from continuing operations)	£m	£m	£m	£m
Net cash generated from total operating activities		127		112
Add back: Payments in respect of adjusting items		13		9
Net cash generated from operating activities, before adjusting items		140		121
Purchase of property, plant and equipment	(16)		(16)
Proceeds from disposal of property, plant and equipment	1		8
Net capital expenditure		(15)		(8)
Net payment in relation to leases		(37)		(35)
Dividends paid to non-controlling interests		(4)		(6)
Free cash flow from continuing operations		84		72
		Six months to 30 Jun 2026		Six months to 30 Jun 2025
Free cash flow conversion		£m		£m
Free cash flow from continuing operations		84		72
Adjusted profit after tax from continuing operations		129		141
Free cash flow conversion		65 %		51 %

	Six months to 30 Jun 2026	Six months to 30 Jun 2025
Net working capital inflow/(outflow) (from continuing operations)	£m	£m
Increase in inventories	(75)	(279)
Decrease/(increase) in trade and other receivables	31	(25)
Increase in trade and other payables	13	251
Net working capital outflow (from continuing operations)	(31)	(53)

APMs: Reconciliation of statement of financial position measures

	As at 30 Jun 2026	As at 30 Jun 2025
Return on capital employed (from continuing operations)	£m	£m
Adjusted operating profit	248	247
Adjusted operating profit for the previous 6 month period	316	285
Adjusted operating profit on a 12 month basis	564	532
Net assets	1,184	1,114
Add: Net debt	672	656
Capital employed - continuing operations	1,856	1,770
Effect of averaging	(43)	195
Average capital employed	1,813	1,965
Return on capital employed	31 %	27 %

	As at 30 Jun 2026	As at 31 Dec 2025
Adjusted net debt and leverage	£m	£m
Net debt	672	607
Less: Lease liabilities	(343)	(343)
Adjusted net debt	329	264
Adjusted earnings before interest, tax, depreciation and amortisation	269	608
Adjusted earnings before interest, tax, depreciation and amortisation for the previous 6 month period	334	n/a
Adjusted earnings before interest, tax, depreciation and amortisation on a 12 month basis	603	608
Leverage (times)	0.5	0.4

APMs: Earnings per share measures

	Six months to 30 Jun 2026	Six months to 30 Jun 2025
Adjusted earnings per share (from continuing operations)	£m	£m
Adjusted profit after tax	129	141
Add/(less): Non-controlling interests	4	(4)
Less: Adjusting items attributable to non-controlling interests	(7)	-
Adjusted earnings attributable to the owners of the parent	126	137
Weighted average number of shares (m)	355	386
Diluted effect (m)	5	7
Basic adjusted earnings per share	35.5p	35.5p
Diluted adjusted earnings per share	34.9p	34.9p

INDEPENDENT REVIEW REPORT TO INCHCAPE PLC

Conclusion

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows and related notes 1 to 14.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 is not prepared, in all material respects, in accordance with United Kingdom adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Basis for Conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in note 1, the Annual Report and Accounts of the Group are prepared in accordance with United Kingdom adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting".

Conclusion Relating to Going Concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410; however future events or conditions may cause the entity to cease to continue as a going concern.

Responsibilities of the directors

The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

In preparing the half-yearly financial report, the directors are responsible for assessing the Group's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the review of the financial information

In reviewing the half-yearly financial report, we are responsible for expressing to the company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our Conclusion, including our Conclusion Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

Use of our report

This report is made solely to the company in accordance with ISRE (UK) 2410. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.

Deloitte LLP

Statutory Auditor

London, England

27 July 2026

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors confirm that the condensed consolidated interim financial statements in the Interim Report have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and that the Interim Report includes a fair review of the information required by Disclosure and Transparency Rules 4.2.7R and 4.2.8R, namely:

•    an indication of important events that have occurred during the first six months and their impact on the condensed consolidated interim financial statements;

•    a description of the principal risks and uncertainties for the remaining six months of the financial year; and

•    material related party transactions in the first six months and any material changes in the related party transactions described in the last Annual Report.

The Directors and positions held during the period were as published in the Annual Report and Accounts 2025. A list of current Directors is maintained on the Inchcape plc website (www.inchcape.com).

On behalf of the Board

Duncan Tait

GROUP CHIEF EXECUTIVE

27 July 2026

 

END