Final Results - Year Ended 31 Dec 1999, Part 1

Inchcape PLC
6 March 2000


PART 1

INCHCAPE ANNOUNCES PRELIMINARY RESULTS FOR 1999

SUMMARY
  Transformation into an international automotive group 
  £529.3m returned to shareholders
  Challenging conditions in key markets, especially the UK
  Ongoing Motors operating profit down 13% to £87.8m
  Exceptional gains of £214.0m
  Headline earnings per share of 60.0p
  Final dividend of 14.0p per share, total ordinary dividend 21.0p per share

Lord Marshall, Chairman of Inchcape said: '1999 signalled the beginning of a
new era for Inchcape with our transformation from a diverse distribution
company into an international automotive group.  Difficult trading conditions
in several of our key markets, not least the United Kingdom, and a changing
industry environment made the year all the more challenging.

'The disposal programme that was set in motion in March 1998 was substantially
completed in line with our original timetable and resulted in £529.3m of cash
being returned to shareholders. 

'Meanwhile, the emergence of Inchcape as a pure automotive group has brought
with it a stronger focus in the business and greater clarity for shareholders.
In addition, we are establishing ourselves as a market leader in automotive
e-commerce.'

THE DISPOSAL PROGRAMME
The disposal programme was largely completed by 30 June.  On 9 July, Inchcape
paid a special dividend of 100p per share - equivalent to 600p per share
following the one for six share consolidation on 12 July.

In addition to those disposals outlined in the 1999 Interim Report, on 16
August Inchcape announced the sale of its 50% interest in Inchcape NRG, the
Asia Pacific office automation business, to Ricoh Hong Kong, Ltd for US$50m
(c. £30m).  During 1999 this business contributed £3.3m to Group operating
profit.  The sale of Inchcape NRG and the subsequent agreement to dispose of
Timberland have completed the programme.

STRATEGY UPDATE
Inchcape is now able to concentrate management attention solely on the Motors
operations.  This enables the Group to build a business that is highly
responsive to the changing nature of the international automotive environment,
and, in particular, the increasing importance of e-commerce, which is
redefining the whole area of customer relationship management.  

The Group will focus its efforts on maximising the opportunities in its major
markets with its key principals.  Inchcape will continue to assess the
performance and longer-term potential of all of its operations, with a view to
expansion or exiting those businesses that do not fit the Group's strategy or
meet its financial hurdles.

1999 PRELIMINARY RESULTS
OPERATIONAL REVIEW
Summary results

                                  1999       1998       
(£ million)                     
Turnover                        4450.0      5506.4       
Continuing Operating Profit      105.6       125.4 
(pre-central costs)      
Headline profit before tax        85.3       106.1       
Exceptionals                     214.0      (403.7)       
Profit (Loss) Before Tax         299.3      (297.6)       
Earnings (Loss) Per Share                     
                Headline          60.0p       50.2p       
                FRS3             302.4p     (414.3)p       
Ordinary Dividend Per Share       21.0p       67.2p       

Headline profit before tax fell from £106.1m to £85.3m and Headline earnings
per share, due to a substantially lower tax charge, rose from 50.2p to 60.0p. 
After exceptional items, principally relating to the disposal programme,
profit before tax is £299.3m and earnings per share is 302.4p. 

ONGOING BUSINESSES
Continuing operating profit pre-central costs fell by 16% to £105.6m from
£125.4m. 

Import & Distribution
This is Inchcape's largest business segment, accounting for operating profits
of £76.9m in 1999.  Lower contributions from the two UK associate companies,
Toyota (GB) and MCL Group, were the most significant factors in the 23%
decline experienced in this segment.  

However there were improved contributions from Continental Europe,
particularly Greece, and South East Asia, fuelled by the record car market in
Singapore.  Hong Kong remained difficult in the first half of the year, which
impacted on profitability, but showed far more encouraging signs in the second
half.  Australia had a good year overall, but was not able to match the strong
result achieved in 1998.  South American markets were very poor last year.

E-commerce
Recognising that e-commerce would have a significant impact on automotive
distribution, the Group invested in Autobytel.com of the US in 1997.  At the
end of April 1999, Inchcape launched its wholly owned subsidiary, Autobytel
UK, to develop the brand in the United Kingdom.  The consumer reaction in the
UK to this new retailing channel has been very encouraging with 1.8m unique
visitors to the site since launch.  On 6 January 2000, the Group expanded its
relationship by taking a 7.3% equity interest in the newly established
Autobytel Europe.

Retail
The completion of the UK property refurbishment programme is reflected in the
improved profits generated in the second half of the year, which were well up
on the second half of 1998.  For the full year, Retail achieved operating
profits of £9.6m, compared with £9.2m in 1998.  The extensive building work
over a two-year period has caused considerable disruption to normal business. 
With the end of the disruption factor and the excellent retail facilities the
Group now has, further benefits are expected to be seen in the coming year. 
However, the new car pricing issue continues to have a negative impact on
consumer sentiment in the UK. 

Financial Services
The Financial Services business, which is a key component of the Group's
customer-focused strategy, achieved strong growth in 1999 with operating
profits up 14% to £19.1m from £16.7m in 1998. The recovery in profitability of
the Asian businesses contributed significantly to this growth.

EXCEPTIONAL ITEMS
The £214.0m of exceptional items are predominantly related to the disposal
programme.

FINANCIAL REVIEW
A summary of financial and accounting matters is attached as Appendix 1.

PROSPECTS
In the year ahead, it is anticipated that the Asian markets will continue to
improve as consumer demand grows and that South American markets will start a
slow recovery.  Further growth is expected in Continental Europe, whilst, in
the UK, it is hoped that the publication of the Competition Commission's
report will help end the current uncertainty in the market and lead to a swift
recovery in sales.

DIVIDEND
The Board recommends that a final ordinary dividend of 14.0p (1998 - 39.6p)
should be paid, giving a total ordinary dividend for the year of 21.0p (1998 -
67.2p).  The dividend is 2.9 times covered by Headline earnings per share. 
Subject to approval at the Annual General Meeting on 10 May 2000, the final
dividend will be paid on 16 June 2000 to shareholders on the register on 26
May 2000. 

Issued by and        Inchcape plc
enquiries to:        Stephen Clark                     020 7546 8250
                     Group Communications Director                     
                            
                     Bridget Gander                    020 7546 8394
                     Head of Investor Relations


Consolidated profit and loss account
for the year ended 31 December 1999
______________________________________________________________________________
                             Continuing   Discontinued
                             operations     operations      Total
______________________________________________________________________________
                                   1999           1999       1999        1998
                                     £m             £m         £m          £m
______________________________________________________________________________
Turnover including share
 of joint ventures
 and associates                 3,678.8          771.2    4,450.0     5,506.4
Less:
- share of joint ventures         (68.5)         (95.8)    (164.3)     (286.6)
- share of associates            (761.6)         (61.6)    (823.2)     (962.8)
_____________________________  _________  _____________  __________  _________
Group subsidiaries'
 turnover                       2,848.7          613.8    3,462.5     4,257.0
Cost of sales                  (2,407.7)        (457.2)  (2,864.9)   (3,389.9)
_____________________________  _________  _____________  __________  _________
Gross profit                      441.0          156.6      597.6       867.1

Operating expenses               (380.3)        (155.2)    (535.5)     (798.9)
Exceptional operating
 expenses                             -              -          -      (131.3)
_____________________________  _________  _____________  __________  _________
                                 (380.3)        (155.2)    (535.5)     (930.2)
Utilisation of termination
 provisions                         2.4            4.6        7.0         6.1
_____________________________  _________  _____________  __________  _________
Operating profit (loss)            63.1            6.0       69.1       (57.0)
Share of profits of joint
 ventures                          12.2            0.3       12.5        22.3
Share of profits of
 associates                        12.5            6.9       19.4        38.6
_____________________________  _________  _____________  __________  _________
Total operating profit             87.8           13.2      101.0         3.9
Net profit on disposal of
 properties and investments         1.3            0.5        1.8         4.1

Net profit (loss) including
 provisions on sale and
 termination of operations          0.9           90.1       91.0      (265.9)
Utilisation of provision for 
net loss on sale of operations        -          126.4      126.4           - 
_____________________________  _________  _____________  __________  _________
                                    0.9          216.5      217.4      (265.9)
Costs of fundamental
 reorganisation                       -           (5.2)      (5.2)      (10.6)
_____________________________  _________  _____________  __________  _________
Profit (loss) on ordinary
 activities before interest        90.0          225.0      315.0      (268.5)
                               =========  =============
Interest                                                    (15.7)      (29.1)
_____________________________                            __________  _________
Profit (loss) on ordinary
 activities before
 taxation                                                   299.3      (297.6)
Tax on profit (loss) on
 ordinary activities                                        (27.1)      (61.4)
_____________________________                            __________  _________
Profit (loss) on ordinary
 activities after taxation                                  272.2      (359.0)
Minority interests                                           (5.4)       (6.5)
_____________________________                            __________  _________
Profit (loss) for the
 financial year                                             266.8      (365.5)
Dividends                                                  (547.9)      (59.4)
_____________________________                            __________  _________
Retained (loss) for the
 financial year                                            (281.1)     (424.9)
==========================                               ==========  =========
Headline profit before
 tax (£m)                                                    85.3       106.1
Headline earnings per
 share (pence)*                                              60.0p       50.2p
FRS3 profit (loss) before
 tax (£m)                                                   299.3      (297.6)
Basic and diluted earnings
 (loss) per share (pence)*                                  302.4p    
(414.3)p

* Comparatives have been adjusted for the one for six share consolidation


Statement of total recognised gains and losses
for the year ended 31 December 1999
______________________________________________________________________________
                                                             1999        1998
                                                               £m          £m
______________________________________________________________________________
Profit (loss) for the financial year                        266.8      (365.5)
Effect of foreign exchange rate changes:
- results for the year                                      (14.3)       (0.5)
- foreign currency net investments                           (9.9)        9.5
Unrealised (deficit) on impairment
 of revalued properties                                         -       (10.0)
_________________________________________________________   ______     _______
Total recognised gains (losses)                             242.6      (366.5)
_________________________________________________________   ______     _______


Note of historical cost profits and losses for the year ended 31 December 1999
______________________________________________________________________________
                                                             1999        1998
                                                               £m          £m 
______________________________________________________________________________
Reported profit (loss) on ordinary activities
 before taxation                                            299.3      (297.6)
Reversal of revaluation element of impairment
 of Marketing Asia Pacific property                             -        34.2
Realisation of property revaluation surpluses
 on disposal of properties                                    0.6         1.3
Realisation of property revaluation surpluses
 on disposal of businesses                                    4.6           -
Difference between the historical cost and the 
 actual depreciation charge                                   0.6         1.5
________________________________________________            _____        _____
Historical cost profit (loss) on ordinary
 activities before taxation                                 305.1      (260.6)
================================================            =====       ======
Historical cost (loss) after taxation,
 minority interests and dividends                          (275.3)     (387.9)
================================================            =====       ======


Consolidated balance sheet as at 31 December 1999

______________________________________________________________________________
                                                             1999        1998
                                                               £m          £m
______________________________________________________________________________
Fixed assets:
Intangible assets                                             4.7        40.7
Tangible assets                                             260.4       450.9

Investments:
- Joint ventures: share of gross assets                     564.7       579.2
                  share of gross liabilities               (528.0)     (533.1)
                                                          _______     _______
                  share of net assets                        36.7        46.1
- Associates                                                 58.9       112.3
- Other investments                                           3.6        11.1
__________________________________________________        _______     _______
                                                            364.3       661.1
Current assets:
Stocks                                                      573.5       778.2
Debtors:
- amounts due within one year                               219.6       471.4
- amounts due after more than one year                       80.3        96.4
Investments                                                  21.3        16.2
Cash at bank and in hand                                    142.5       252.3
__________________________________________________        _______     _______
                                                          1,037.2     1,614.5
Creditors - amounts falling due within one year:
Borrowings                                                 (228.3)     (271.8)
Other                                                      (515.9)     (926.6)
__________________________________________________        _______     _______
                                                           (744.2)   (1,198.4)
__________________________________________________        _______     _______
Net current assets                                          293.0       416.1

Total assets less current liabilities                       657.3     1,077.2

Creditors - amounts falling due
 after more than one year:
Borrowings                                                  (63.2)     (123.9)
Other                                                       (88.9)     (100.8)
__________________________________________________        _______     _______
                                                           (152.1)     (224.7)

Provisions for liabilities and charges                     (138.9)     (162.0)
__________________________________________________        _______     _______
Net assets                                                  366.3       690.5
==================================================        =======     =======

Capital and reserves:
Called-up share capital                                     132.5       132.5
Share premium account                                       106.9       106.9
Revaluation reserve                                          37.6       139.7
Profit and loss account                                      43.1       175.2
__________________________________________________        _______     _______
Equity shareholders' funds                                  320.1       554.3
Minority interests                                           46.2       136.2
__________________________________________________        _______     _______
                                                            366.3       690.5
==================================================        =======     =======


Consolidated cash flow statement for the year ended 31 December 1999

Reconciliation of operating profit to operating cash flows
______________________________________________________________________________
                                                             1999        1998
                                                               £m          £m 
______________________________________________________________________________
Operating profit before exceptional operating items          69.1        74.3
Amortisation and depreciation                                33.9        54.2
(Profit) on sale of tangible fixed assets 
 other than property                                         (0.2)          -
Decrease in stocks                                           57.3        35.8
Decrease in debtors                                          25.7        77.5
(Decrease) in creditors                                     (76.1)     (117.7)
Payments in respect of exceptional operating items           (2.7)      (19.1)
Payments in respect of termination of operations            (33.7)      (15.6)
Other items                                                   2.0        (8.2)
__________________________________________________        _______     _______
Net cash inflow from operating activities                    75.3        81.2
==================================================        =======     =======


Consolidated cash flow statement
______________________________________________________________________________
Net cash inflow from operating activities                    75.3        81.2
Dividends from joint ventures                                 4.5        23.5
Dividends from associates                                    13.3        14.3
Returns on investments and servicing of finance             (15.7)      (33.9)
Taxation                                                    (17.6)      (40.8)
Capital expenditure and financial investment                (34.3)      (89.3)
__________________________________________________        _______     _______
                                                             25.5       (45.0)
Acquisitions and disposals                                  626.0        73.3
Equity dividends paid                                      (570.5)      (59.4)
__________________________________________________        _______     _______
Net cash inflow (outflow) before use of liquid
 resources and financing                                     81.0       (31.1)
Net cash (outflow) inflow from the management
 of liquid resources                                        (25.6)        3.1
Net cash (outflow) from financing                           (50.7)     (155.8)
__________________________________________________        _______     _______
Net increase (decrease) in cash                               4.7      (183.8)
==================================================        =======     =======


Reconciliation of net cash flow to movement in net funds and debt
______________________________________________________________________________
Net increase (decrease) in cash                               4.7      (183.8)
Net cash outflow from increase
 in debt and lease financing                                 50.7       156.0
Net cash outflow (inflow) from the management
 of liquid resources                                         25.6        (3.1)
__________________________________________________        _______     _______
Change in net funds and debt resulting from
 cash flows                                                  81.0       (30.9)

Effect of foreign exchange rate changes on net debt          (7.3)        4.0
Inception of finance lease contracts                         (0.2)       (1.5)
Net loans and finance leases of subsidiaries acquired
 and sold                                                    25.1        (8.6)
Liquid resources of subsidiaries sold                      (104.2)      (10.4)
__________________________________________________        _______     _______
Movement in net debt                                         (5.6)      (47.4)
Net (debt) at 1 January                                    (143.4)      (96.0)
__________________________________________________        _______     _______
Net (debt) at 31 December                                  (149.0)     (143.4)
==================================================        =======     =======


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