Interim Results

Inchcape PLC
7 August 2000

    
INCHCAPE ANNOUNCES INTERIM RESULTS FOR YEAR 2000 
Strong balance sheet to help fund growth strategy

Inchcape Chairman Sir John Egan said today that the Group's balance sheet
strength would be utilised to fund its growth strategy and, in particular, to
invest in the UK market.  

Announcing Inchcape's interim results for the six months ended 30 June 2000,
Sir John said he was encouraged by the Group's first half performance. 
Despite highly competitive markets in Europe, particularly the UK, operating
profits in Inchcape's three main trading activities grew 3.2% during the
period to £54.1m.  Continuing operating profit declined £3.4m to £40.1m due to
further investment in Autobytel UK, the online car purchasing service, and
other businesses development initiatives.

Key Points Summary
- Profit in three main trading activities up 3.2% to £54.1m
- Further investment in Autobytel and new business development
- Continuing operating profit £40.1m (1999 - £43.5m)
- Strong recovery in Asia, profits up 55% 
- UK Retail profits up 40%
- Total UK profits down, due to:
  - E-commerce investment 
  - Reduction in profits from associates
  - Leasing impacted by lower residual values 
- Cash generation of £63.0m
- Sale of Toyota (GB) for £42.1m announced 31 July 
- Pro-forma gearing post-Toyota (GB) sale 10.7%
- Interim dividend 7.3p per share (1999 - 7.0p per share)

2000 INTERIM RESULTS 
Financial Summary 
(£ million) six months to 30 June                2000      1999
Turnover                                      2,025.4   2,407.1  
Continuing turnover                           2,005.7   1,855.5
Headline Profit Before Tax                       30.0      40.9
Exceptionals                                     (0.1)    235.2
FRS3 Profit Before Tax                           29.9     276.1
Earnings Per Share
- Headline                                       18.6p     27.1p 
- FRS3                                           18.5p    274.9p
Dividend Per Share                                7.3p      7.0p

CHAIRMAN'S STATEMENT
I succeeded Lord Marshall as Chairman of Inchcape on 15 June and have been
encouraged by the Group's first half performance. Profits in our three main
trading activities grew 3.2% to £54.1m, despite highly competitive markets in
Europe, particularly the UK.  Due to our investment in Autobytel UK, our
online car purchasing business, and in developing additional products and
channels to market, continuing operating profit declined £3.4m to £40.1m.  The
strong recovery in Asia in the first six months was very encouraging and
contributed significantly to the results. 

On 31 July, we announced the sale of our 49.0% share in Toyota (GB) to Toyota
Motor Corporation for £42.1m, an agreement that provides Inchcape with
additional funds to invest in our core businesses whilst giving Toyota 100%
ownership in one of its key markets.  Inchcape remains Toyota's largest
independent distributor, representing them in 14 markets - including Greece,
Belgium, Hong Kong and Singapore - and selling around 90,000 vehicles a year. 
We both look forward to further developing that relationship.

OPERATING REVIEW
First half turnover for the Group (including our share of joint ventures and
associates) fell 15.9% to £2,025.4m following the disposal of our non-Motors
businesses.  Continuing turnover was 8.1% or £150.2m higher than the prior
period.

Operating profit was £40.4m compared to £49.4m in the same period last year,
but £5.6m of the shortfall related to discontinued businesses.  Net
exceptional items in the first half of 2000 were a loss of £0.1m.  This
compares to exceptional gains of £235.2m in the same period last year which
arose primarily from the sale of Bottling South America.

Import, Distribution & Retail 
Continuing operating profit grew from £38.2m to £40.3m. This was despite the
pricing pressure in the UK market and its impact on our two associates, Toyota
(GB) and MCL Group (the Mazda and Kia distributor).  Growth was principally
driven by the strong recovery in Asia. 

In the climate of uncertainty surrounding the Competition Commission inquiry
into new car pricing, the UK market grew 2.3% in the first half, with Inchcape
volumes increasing 6.0%. Toyota (GB) increased sales by 11.3%, but margins
suffered due to the highly competitive marketplace.  Mazda volumes declined
8.1%.  Together, these two associates achieved operating profit of £1.0m, a
fall of 76.1% compared to the first half of 1999. 

Our Ferrari and Maserati businesses continue to perform well with volumes and
turnover increasing.  The re-launch of Maserati, one of the world's most
exciting high performance marques, backed by Ferrari's acknowledged pedigree
in manufacturing and engineering excellence, provides significant potential
for this business.

In Greece, we retained market leadership, but our Toyota volumes were down
4.2% and competitive pressure drove down margins.  In Belgium, whilst Toyota
sales increased, margins were held back by a very competitive marketplace.

Our Australian business goes from strength to strength.  In a market that
declined 12.5%, Inchcape volumes increased by 2.8%, although the strong yen
impacted on margins leaving profits only slightly ahead of the first half of
1999. 

Asian markets continued their recovery, particularly in Hong Kong and
Singapore where we increased our volumes by 32.0% and 39.1% respectively. In
Hong Kong, we retained our dominant market share of 38.8%, whilst, in
Singapore, we achieved 20.6% market share.  Operating profits from our Asian
operations increased 67.2% from £11.9m to £19.9m. 

Looking to our Other markets, South America remains difficult, but losses have
been significantly reduced.  However, this improvement was offset by a decline
in both volumes and margin in the Mazda businesses in France and Finland,
which were adversely affected by the strong yen - a situation that is
aggravated by Mazda's lack of a European production base.  The return on net
operating assets from our Other markets is at an unacceptably low level and we
continue to critically review our options for these businesses, including
disposal.

UK Retail
During the past three years, we have restructured our UK Retail business to
produce a better balance between volume and prestige marques.  Our extensive
dealership refurbishment programme is complete and the positive impact of this
is now being felt.  During the first half of 2000, operating profit increased
40.0% to £5.6m. Against a market increase of 2.3%, our new car sales grew
18.5% in the retail sector and our fleet sales were up 56.6%. This was an
encouraging performance in such an extremely competitive marketplace. 

Financial Services
Operating profit has decreased from £10.2m to £8.2m.  This decrease is totally
attributable to the performance within our UK Leasing business, which, in line
with the rest of the market, has been impacted by the continuing decline in
used car values. In Asia, the profits from our Finance businesses grew 19.3%
to £4.9m.  

E-commerce
We are fully committed to exploiting the new channels to market that
e-commerce provides and have continued to successfully build the Autobytel
brand in the UK. 

Our continued investment in Autobytel UK, our wholly owned subsidiary,
resulted in a loss of £4.0m in the first half of 2000 compared to a profit of
£1.3m in the same period last year.  The 1999 figure benefited from the
release of a £3.0m provision, previously held against the Group's investment
in Autobytel.com, without which Autobytel UK would have made a loss of £1.7m.

Since launch in April 1999, Autobytel UK has attracted almost three million
unique visitors and generated over 42,000 purchase requests.  The conversion
rate from purchase request to sales is currently around 14%, which compares
very favourably with Autobytel's early experience in the United States. In
terms of brand recognition, Autobytel has recently been ranked amongst the top
20 UK websites.

Central costs
Central costs for the period were £10.0m, including £3.0m relating to the
research and development of new products and channels to market.  This
compares with central costs for the same period last year of £10.2m, of which
£3.5m related to costs occurring from the non-Motors divestment programme.  On
a like for like basis, central costs were materially the same as last year.

FINANCIAL REVIEW
Segmental reporting
The Group has revised the segmental reporting format during the period. All
prior year comparatives have been restated accordingly. 

The new geographical analysis has been constructed so that key material
markets are highlighted. 

The new activity analysis splits out our E-commerce and pure UK Retail
businesses. The separation of our E-commerce activity ensures that our
investment and performance in this area is explicitly disclosed. This was
previously included as part of the old Import & Distribution activity, now
renamed Import, Distribution & Retail. The UK Retail business is the only
material stand-alone retail operation. Separately analysing its performance
and asset base allows direct comparison with our major UK competitors. The
other small retail businesses have been reclassified into Import, Distribution
& Retail. This activity includes our pure import and distribution businesses
and those that have vertically integrated into retail. The retail element
within this activity cannot be meaningfully separated out from the import and
distribution results.

New accounting standards
As noted in the Annual Report & Accounts 1999, the Group has already adopted
FRS15 'Tangible Fixed Assets' and FRS16 'Current Tax'.

Disposals & acquisitions
The Group continues to review its portfolio of businesses and has already
announced the sale of Daihatsu (UK) and Inchcape Peugeot Japan. Along with
other minor Motors disposals, a net profit of £0.9m was recorded. The Group
has also sold or closed its Timberland businesses and the loss associated with
these transactions was fully provided for in 1998. A net loss of £0.9m has
been recorded on other non-Motors disposals. Overall, these transactions have
resulted in a zero net exceptional item.

During the period, the Group announced that, as part of its strategic drive
into e-commerce services, it has made an investment of US$10.0m for a 7.3%
equity interest in Autobytel Europe. This has been treated as a fixed asset
investment held at cost.

As previously announced on 31 July 2000, the Group has disposed of its 49.0%
equity holding in Toyota (GB) for a sum of £42.1m. As the disposal is
conditional on European Commission approval, the results are not shown as
discontinued in this period. The associate investment value at 30 June 2000
was £28.4m. On this basis, a profit of £13.7m, subject to costs, would have
been recorded had the transaction been completed during the period under
review, and no tax is payable on this disposal. No historical goodwill is
attached to this transaction. The results for the period include a loss before
tax of £1.7m (first six months of 1999 profit £2.1m; full year 1999 profit
£5.0m).

The Daihatsu (UK), Inchcape Peugeot Japan and Autobytel Europe transactions
were previously noted in the Annual Report & Accounts 1999.

Cash flow, interest and financing
Net debt at the end of the period was £86.0m, compared to £149.0m at 31
December 1999 and £195.9m at 30 June 1999 (net of the special dividend of
£529.3m paid on 9 July 1999). The net debt decrease of £63.0m was driven by
strong cash generation from working capital reductions of £44.7m.

During the period, net capital expenditure (capital expenditure net of
depreciation and disposal proceeds) of £0.7m was incurred. Cash received from
disposals amounted to £20.4m and cash spent on acquisitions amounted to
£10.6m.

In May 2000, the Group repaid US$100.0m of loan notes as required, leaving the
balance of the loan notes, US$72.0m, falling due in May 2002. In part
replacement of this facility, a £30.0m term loan was put in place with a
relationship bank. 

The Group net interest charge of £10.4m can be analysed between subsidiary net
interest of £6.7m and associates and joint ventures net interest of £3.7m.
This compares to a net interest charge in the same period last year of £8.5m
which can be split £7.3m net interest for subsidiaries and £1.2m net interest
relating to associates and joint ventures. The first half of 1999 benefited
from holding the disposal proceeds prior to the payment of the special
dividend. 

The Group continues to review its gross cash and debt position in order to
achieve fiscal efficiency. Significant funds (£105.2m) are currently held in
Dutch guilders earning interest at Euro rates, primarily as a result of the
non-Motors disposal programme in 1999. Solutions to the mismatch with our UK
debt position are being actively explored.

Exchange effects
Headline profit before tax during the first half would have been £0.5m greater
if translated at the average exchange rates prevailing in the comparable
period.

The Group continues to operate a prudent policy of hedging transactions and,
where appropriate, pre-transaction exposures.

Tax
The Headline tax charge for the half year is £9.8m and represents an effective
tax rate of 32.7%. There is no tax arising on the exceptional items for the
period.

Dividends
The Board has decided to pay an interim dividend of 7.3p per share. This
represents an increase of 4.3% on last year's interim dividend. The interim
dividend payment will be made to shareholders on the register as at 18 August
2000 and will be paid on 21 September 2000.

PROSPECTS
The sale of our interest in Toyota (GB) provides us with a strong balance
sheet, but clearly we will lose the contribution from this business in the
second half of the year.

We expect a solution to the current uncertainty in the UK market to be
forthcoming in the next few months. Greece and Belgium will remain highly
competitive throughout 2000. The strong recovery in Asia is continuing and
Australia should see growth in the second half.

LOOKING AHEAD
I have joined Inchcape at an exciting time of change for the automotive
industry.  Inchcape fully intends to remain at the heart of this change. 

We will continue to concentrate on developing our core businesses in the UK,
Greece, Belgium, Australia, Hong Kong and Singapore.  

The dynamics of the UK market post the Competition Commission inquiry and the
review of European Block Exemption rules should present considerable
opportunities for Inchcape. We will use our bulk purchasing power to give
value to our customers.  We will provide alternative channels to market,
backed up by our ability to offer total customer fulfilment - from the
purchase, financing and delivery of the vehicle to the on-going after-sales
service.

The sale of our shareholding in Toyota (GB), the likelihood of additional
proceeds from other divestments, along with strong operational cash flow
provides Inchcape with significant balance sheet strength.  This will enable
us to fund our growth strategy.

Sir John Egan
Chairman

Notes to editors:

1. Inchcape is the world's largest independent automotive distribution group,
operating in more than 20 international markets and representing many of the
world's leading car manufacturers.  The Group's activities include import and
distribution, retail of new and used cars, automotive e-commerce, and
financial services, including consumer and dealer finance, insurance and
leasing. 

2. Inchcape's UK businesses comprise: 
-  Inchcape UK, which includes the Group's extensive UK dealer network,       
   Inchcape Motors Retail, its leasing businesses, MEVC and Kenning Leaseline,
   and its vehicle logistics operation, Seaking Automotive;
-  Autobytel.co.uk the internet-based car retailing service;
-  The Ferrari and Maserati import, distribution and retail businesses; and
-  A 40% interest in the MCL Group, the Mazda and Kia importer and            
   distributor.

3. On 31 July 2000, Inchcape announced it had sold its 49.0% interest in      
   Toyota (GB) to Toyota Motor Corporation (TMC) for £42.1m in cash, bringing 
   to a premature end an agreement between Inchcape and TMC signed in March   
   1990. Under the terms of the original agreement, Toyota (GB) was granted an
   exclusive contract to distribute Toyota vehicles in the UK until 31        
   December 2007, when the position would be reviewed.  In addition, it was   
   agreed that TMC would purchase a 51% stake in Toyota (GB) over eight years,
   beginning with a 5% stake on 30 March 1990, 20% on 1 July 1995, and a      
   further 26% on 1 January 1998.

Issued by and                Inchcape plc
enquiries to:                Group Chief Executive
                             Peter Johnson                     020 7546 8410  
    
                             Group Communications Director
                             Stephen Clark                     020 7546 8250 

                             Group Communications Manager
                             Helen Cartmell                     020 7546 8328 


Consolidated profit and loss account
for the six months ended 30 June 2000
__________________________________________________________________________
                                        Six months   Six months    Year to
                                        to 30.6.00   to 30.6.99   31.12.99
                                                £m           £m         £m
___________________________________________  __________  __________  _____
Turnover including share of joint ventures
 and associates                           2,025.4      2,407.1    4,450.0
Less:
- share of joint ventures                   (35.6)      (100.9)    (164.3)
- share of associates                      (427.1)      (436.0)    (823.2)
___________________________________________  __________  __________  _____
Group subsidiaries' turnover              1,562.7      1,870.2    3,462.5
===========================================  ==========  ==========  =====
Operating profit                             30.9         31.3       69.1
Share of profits of joint ventures            6.6          9.1       12.5
Share of profits of associates                2.9          9.0       19.4
___________________________________________  __________  __________  _____
Total operating profit                       40.4         49.4      101.0
Net (loss) profit on disposal of
 properties and investments                  (0.1)         1.9        1.8
Net (loss) profit including provisions
 on sale and termination of operations      (15.4)       112.7       91.0
Utilisation of provision for net loss
 on sale of operations                       15.4        126.4      126.4
                                             __________  __________  _____
                                               -         239.1      217.4
Costs of fundamental reorganisation            -          (5.8)      (5.2)
___________________________________________  __________  __________  ____
Profit on ordinary activities before
 net interest                                40.3        284.6      315.0
Net interest:
 Subsidiaries                                (6.7)        (7.3)     (12.9)
 Share of joint ventures                     (0.3)        (0.5)      (0.7)
 Share of associates                         (3.4)        (0.7)      (2.1)
                                             __________  __________  ____
 Total                                      (10.4)        (8.5)     (15.7)
___________________________________________  __________  __________  _____
Profit on ordinary activities before
 taxation                                    29.9        276.1      299.3
Tax on profit on ordinary activities         (9.8)       (31.6)     (27.1)
___________________________________________  __________  __________  _____
Profit on ordinary activities after
 taxation                                    20.1        244.5      272.2
Minority interests                           (3.8)        (2.0)      (5.4)
___________________________________________  __________  __________  ____
Profit for the financial period              16.3        242.5      266.8
Dividends                                    (6.4)      (535.5)    (547.9)
___________________________________________  __________  __________  ____
Retained profit (loss) for the
 financial period                             9.9       (293.0)    (281.1)
===========================================  ==========  ==========  =====
Headline profit before tax (£m)              30.0         40.9       85.3
Headline earnings per share*                 18.6p        27.1p      60.0p

FRS3 profit before tax (£m)                  29.9        276.1      299.3
Basic and diluted earnings per share*        18.5p       274.9p     302.4p
===========================================  ==========  ==========  =====

* Adjusted for share consolidation - note 7

Details of the results of operations discontinued in 1999 are given in note 1

Statement of total recognised gains and losses
for the six months ended 30 June 2000
__________________________________________________________________________
                                        Six months   Six months    Year to
                                        to 30.6.00   to 30.6.99   31.12.99
                                                £m           £m         £m
___________________________________________  __________  __________  ____
Profit for the period                         16.3        242.5     266.8
Effect of foreign exchange rate changes:
- results for the period                       0.6          3.9     (14.3)
- foreign currency net investments            15.4         (7.8)     (9.9)
___________________________________________  __________  __________  _____
Total recognised gains                        32.3        238.6     242.6
===========================================  ==========  ==========  =====


Reconciliation of movements in shareholders' funds
for the six months ended 30 June 2000
__________________________________________________________________________
                                        Six months   Six months    Year to
                                        to 30.6.00   to 30.6.99   31.12.99
                                                £m           £m         £m
___________________________________________  __________  __________  _____
Profit for the financial period               16.3        242.5      266.8
Dividends                                     (6.4)      (535.5)    (547.9)
___________________________________________  __________  __________  _____
                                               9.9       (293.0)    (281.1)
Effect of foreign exchange rate changes       16.0         (3.9)     (24.2)
Goodwill on disposals and written off           -          54.2       71.1
___________________________________________  __________  __________  _____
Net change in shareholders' funds             25.9       (242.7)    (234.2)
Opening balance                              320.1        554.3      554.3
___________________________________________  __________  __________  _____
Closing balance                              346.0        311.6      320.1
===========================================  ==========  ==========  =====


Summarised consolidated balance sheet
as at 30 June 2000
__________________________________________________________________________
                                             As at        As at      As at
                                           30.6.00      30.6.99   31.12.99
                                                £m           £m         £m
__________________________________________________________________________
Fixed assets:
Intangible assets                              4.1          3.6        4.7
Tangible assets                              264.8        266.4      260.4
Investments:
- Joint ventures: 
   - share of gross assets                   555.3        568.7      564.7
   - share of gross liabilities             (510.1)      (532.1)    (528.0)
                                             __________  __________  _____
   - share of net assets                      45.2         36.6       36.7
- Associates                                  59.4         85.8       58.9
- Other investments                            9.8          3.6        3.6
___________________________________________  __________  __________  _____
                                             383.3        396.0      364.3

Current assets:
Stocks                                      501.4        582.8      573.5
Debtors                                     315.8        374.0      299.9
Investments                                   9.9         22.0       21.3
Cash at bank and in hand                    152.9        614.6      142.5
___________________________________________  __________  __________  _____
                                            980.0      1,593.4    1,037.2

Creditors - amounts falling due
 within one year:
Borrowings                                 (146.0)      (219.5)    (228.3)
Other                                      (521.2)    (1,086.1)    (515.9)
___________________________________________  __________  __________  _____
Net current assets                          312.8        287.8      293.0
___________________________________________  __________  __________  _____
Total assets less current liabilities       696.1        683.8      657.3

Creditors - amounts falling due
 after more than one year:
Borrowings                                  (92.9)       (61.7)     (63.2)
Other                                       (73.0)      (103.1)     (88.9)
___________________________________________  __________  __________  _____
                                           (165.9)      (164.8)    (152.1)
Provisions for liabilities and charges     (133.4)      (160.5)    (138.9)
___________________________________________  __________  __________  _____
Net assets                                  396.8        358.5      366.3
===========================================  ==========  ==========  =====

Equity shareholders' funds                  346.0        311.6      320.1
Minority interests                           50.8         46.9       46.2
___________________________________________  __________  __________  _____
                                            396.8        358.5      366.3
===========================================  ==========  ==========  =====


Summarised consolidated cash flow statement
for the six months ended 30 June 2000

Reconciliation of operating profit to operating cash flows
__________________________________________________________________________
                                        Six months   Six months    Year to
                                        to 30.6.00   to 30.6.99   31.12.99
                                                £m           £m         £m
______________________________________________________________________________
Operating profit before exceptional
 operating items                             30.9         31.3       69.1
Amortisation and depreciation                12.8         20.0       33.9
Loss (profit) on sale of tangible fixed
 assets other than property                   0.2         (0.2)      (0.2)
Decrease in working capital                  44.7         51.7        6.9
Payments in respect of exceptional
 operating items                               -          (3.8)      (2.7)
Payments in respect of termination of
 operations                                  (0.2)        (3.1)     (33.7)
Other items                                   4.1          0.7        2.0
___________________________________________  __________  __________  ____
Net cash inflow from operating activities    92.5         96.6       75.3
===========================================  ==========  ==========  =====


Consolidated cash flow statement
__________________________________________________________________________
Net cash inflow from operating activities    92.5         96.6       75.3
Dividends from joint ventures                 5.2          2.8        4.5
Dividends from associates                     3.2          8.5       13.3
Returns on investments and servicing
 of finance                                  (9.2)       (10.0)     (15.7)
Taxation                                     (8.6)       (20.4)     (17.6)
Capital expenditure and financial
 investment                                 (13.5)       (29.9)     (34.3)
___________________________________________  __________  __________  _____
                                             69.6         47.6       25.5
Acquisitions and disposals                    9.8        541.9      626.0
Equity dividends paid                       (12.4)       (35.0)    (570.5)
___________________________________________  __________  __________  _____
Net cash inflow before use of liquid
 resources and financing                     67.0        554.5       81.0
Net cash (outflow) from the management
 of liquid resources                         (9.0)      (508.7)     (25.6)
Net cash (outflow) from financing           (50.5)      (119.5)     (50.7)
___________________________________________  __________  __________  _____
Net increase (decrease) in cash               7.5        (73.7)       4.7
===========================================  ==========  ==========  =====


Reconciliation of net cash flow to movement in net funds and debt
__________________________________________________________________________
Net increase (decrease) in cash               7.5        (73.7)       4.7
Net cash outflow from decrease in debt
 and lease financing                         50.5        121.5       50.7
Net cash outflow from the management
 of liquid resources                          9.0        508.7       25.6
___________________________________________  __________  __________  ____
Change in net funds and debt resulting
 from cash flows                             67.0        556.5       81.0
Effect of foreign exchange rate changes
 on net debt                                 (2.0)        (0.1)      (7.3)
Inception of finance lease contracts           -            -        (0.2)
Net loans and finance leases of
 subsidiaries acquired and sold                -          25.7       25.1
Liquid resources of subsidiaries sold        (2.0)      (105.3)    (104.2)
___________________________________________  __________  __________  ____
Movement in net funds (debt)                 63.0        476.8       (5.6)
Opening net (debt)                         (149.0)      (143.4)    (143.4)
___________________________________________  __________  __________  ____
Closing net (debt) funds                    (86.0)       333.4     (149.0)
===========================================  ==========  ==========  ====


Notes to the accounts

1 Segmental analysis

______________________________________________________________________________
                                            Group turnover plus share of joint
                                                       ventures and associates
__________________________________________________________________________
                                        Six months   Six months    Year to
                                        to 30.6.00   to 30.6.99   31.12.99
                                                       restated   restated
By activity:                                    £m           £m         £m
___________________________________________  __________  __________  _____
Import, Distribution & Retail             1,587.9      1,461.5    2,930.0
UK Retail                                   352.0        328.0      618.6
Financial Services                           65.0         65.5      129.4
E-commerce                                    0.8          0.5        0.8
___________________________________________  __________  __________  _____
                                          2,005.7      1,855.5    3,678.8
Central costs                                  -            -          -
___________________________________________  __________  __________  _____
Continuing                                2,005.7      1,855.5    3,678.8
Discontinued                                 19.7        551.6      771.2
___________________________________________  __________  __________  _____
                                          2,025.4      2,407.1    4,450.0
===========================================  ==========  ==========  =====


1 Segmental analysis (continued)

__________________________________________________________________________

                                                    Total operating profit
__________________________________________________________________________
                                        Six months   Six months    Year to
                                        to 30.6.00   to 30.6.99   31.12.99
                                                      restated   restated
By activity:                                   £m           £m         £m
___________________________________________  __________  __________  _____
Import, Distribution & Retail                40.3         38.2       78.8
UK Retail                                     5.6          4.0        9.1
Financial Services                            8.2         10.2       19.1
E-commerce                                   (4.0)         1.3       (1.4)
___________________________________________  __________  __________  _____
                                             50.1         53.7      105.6
Central costs                               (10.0)       (10.2)     (17.8)
___________________________________________  __________  __________  _____
Continuing                                   40.1         43.5       87.8
Discontinued                                  0.3          5.9       13.2
___________________________________________  __________  __________  _____
                                             40.4         49.4      101.0
===========================================  ==========  ==========  =====


1 Segmental analysis (continued)

__________________________________________________________________________
                                        Group turnover plus share of joint
                                                   ventures and associates
__________________________________________________________________________
                                       Six months   Six months    Year to
                                        to 30.6.00   to 30.6.99   31.12.99
                                                      restated   restated
By geographical market:                        £m           £m         £m
___________________________________________  __________  __________  _____
UK                                          871.6        794.6    1,564.5
Greece/Belgium                              296.2        303.3      559.0
Australia/New Zealand                       289.1        242.2      481.9
Hong Kong                                   155.2        123.5      275.7
Singapore/Brunei                            171.6        129.6      295.3
Other                                       222.0        262.3      502.4
___________________________________________  __________  __________  _____
                                          2,005.7      1,855.5    3,678.8
Central costs                                  -            -          -
___________________________________________  __________  __________  _____
Continuing                                2,005.7      1,855.5    3,678.8
Discontinued                                 19.7        551.6      771.2
___________________________________________  __________  __________  _____
                                          2,025.4      2,407.1    4,450.0
===========================================  ==========  ==========  =====


1 Segmental analysis (continued)

__________________________________________________________________________

                                                    Total operating profit
__________________________________________________________________________
                                        Six months   Six months    Year to
                                        to 30.6.00   to 30.6.99   31.12.99
                                                      restated   restated
By geographical market:                        £m           £m         £m
___________________________________________  __________  __________  ____
UK                                            5.7         16.5       31.8
Greece/Belgium                                8.2          9.8       16.8
Australia/New Zealand                         9.4          9.3       10.6
Hong Kong                                    14.2          9.0       24.1
Singapore/Brunei                             10.6          7.0       15.9
Other                                         2.0          2.1        6.4
___________________________________________  __________  __________  _____
                                             50.1         53.7      105.6
Central costs                               (10.0)       (10.2)     (17.8)
___________________________________________  __________  __________  _____
Continuing                                   40.1         43.5       87.8
Discontinued                                  0.3          5.9       13.2
___________________________________________  __________  __________  ____
                                             40.4         49.4      101.0
===========================================  ==========  ==========  =====

Segmental analyses by activity and geographical market have been redefined and
accordingly all comparatives have been restated.

With regard to the change in activity definition, E-commerce, which is a UK 
based business, was previously included within Import & Distribution.  UK 
Retail was previously part of Retail, which also included small scale retail 
activities, principally in Continental Europe.  These have now been included 
within Import, Distribution & Retail for activity and within Other for 
geographical market.  The retail activities within Import, Distribution & 
Retail predominately relate to where the Group also acts as importer and 
distributor.  Accordingly, the retail results of these businesses cannot be 
meaningfully separated from the underlying Import & Distribution business.

The principal reclassification within geographical market has been to disband 
the Continental Europe classification and replace this with the Greece/
Belgium category.  The businesses based in France and Finland have been 
reclassified into Other.  The previous category of Far East has been disbanded

to now display only Hong Kong, with the other businesses previously included 
being reclassified into Other.  The previous categories of Australasia and 
South East Asia have been renamed Australia/New Zealand and Singapore/Brunei. 

Refer to Financial Review 'Segmental Reporting'.

Activities discontinued in 1999 comprised primarily Bottling South America, 
Marketing, Shipping, Office Automation, Timberland and the Motors businesses 
of Chrysler Jeep Imports UK, Inchcape Peugeot Japan and Daihatsu (UK).  The 
current discontinued, representing turnover of £19.7m and operating profit of 
£0.3m, relates principally to the Motors element of these discontinued 
activities.


2 Analysis of turnover and total operating profit
______________________________________________________________________________
                                                                      Turnover
__________________________________________________________________________
                                       Six months   Six months    Year to
                                        to 30.6.00   to 30.6.99   31.12.99
                                                £m           £m         £m
___________________________________________  __________  __________  _____
Continuing:
The Company and its subsidiaries           1,545.9      1,438.3    2,848.7
Joint ventures                                32.7         37.2       68.5
Associates                                   427.1        380.0      761.6
___________________________________________  __________  __________  _____
Continuing                                 2,005.7      1,855.5    3,678.8
___________________________________________  __________  __________  _____
Discontinued:
The Company and its subsidiaries              16.9        431.9      613.8
Joint ventures                                 2.8         63.7       95.8
Associates                                      -          56.0       61.6
___________________________________________  __________  __________  _____
Discontinued                                  19.7        551.6      771.2
___________________________________________  __________  __________  _____
                                           2,025.4      2,407.1    4,450.0
===========================================  ==========  ==========  =====


2 Analysis of turnover and total operating profit (continued)
__________________________________________________________________________
                                                   Total operating profit
__________________________________________________________________________
                                        Six months   Six months    Year to
                                        to 30.6.00   to 30.6.99   31.12.99
                                                £m           £m         £m
___________________________________________  __________  __________  _____
Continuing:
The Company and its subsidiaries              30.4         31.2       63.1
Joint ventures                                 6.8          6.0       12.2
Associates                                     2.9          6.3       12.5
___________________________________________  __________  __________  _____
Continuing                                    40.1         43.5       87.8
___________________________________________  __________  __________  _____
Discontinued:
The Company and its subsidiaries               0.5          0.1        6.0
Joint ventures                                (0.2)         3.1        0.3
Associates                                      -           2.7        6.9
___________________________________________  __________  __________  _____
Discontinued                                   0.3          5.9       13.2
___________________________________________  __________  __________  ____
                                              40.4         49.4      101.0
===========================================  ==========  ==========  =====


3 Basis of presentation
__________________________________________________________________________

The results for the periods to 30 June have been prepared using the discrete 
period approach (i.e. considering them as accounting periods in isolation).  
The Headline tax charge is based on the effective tax rates estimated for the 
full year in the Group's major countries of operation being applied to the 
actual profits for the first half.

These unaudited interim financial statements do not constitute statutory 
accounts and have been prepared on the basis of the accounting policies set 
out in the 1999 Annual Report and Accounts.

The results for the year ended 31 December 1999 have been abridged from the 
Group's published financial statements, which have been reported on by the 
Group's auditors and filed with the Registrar of Companies.  The report of the
auditors was unqualified and did not contain a statement under S237 (2) or (3)
of the Companies Act 1985.


The major exchange rates applied are as follows:

__________________________________________________________________________
                              Average rates              Period end rates
                      __________________________    __________________________

                      30.6.00  30.6.99  31.12.99    30.6.00  30.6.99  31.12.99
__________________________________________________________________________
Australian dollar      2.59     2.53      2.53       2.52     2.38      2.46
Belgian franc         66.3     60.0      60.9       63.7     61.7      64.9
Dutch guilder          3.62     3.28      3.33       3.48     3.37      3.54
Greek drachma           550      483       493        532      496       531
Hong Kong dollar      12.22    12.52     12.55      11.80    12.23     12.53
Singapore dollar       2.69     2.76      2.74       2.62     2.68      2.69
US dollar              1.57     1.62      1.62       1.51     1.58      1.61
__________________________________________________________________________


4 Exceptional items
__________________________________________________________________________
                                         Six months   Six months    Year to
                                         to 30.6.00   to 30.6.99   31.12.99
                                                 £m           £m         £m
___________________________________________  _________   __________  _____
Net (loss) profit on disposal of
 properties and investments                   (0.1)         1.9        1.8
Net profit (loss) including provisions on
 sale and termination of operations:
- Motors sales and terminations                0.9         (2.3)     (14.2)
- Non-Motors sales and terminations           (0.9)       (37.9)     (47.4)
- Bottling South America                        -         279.3      279.0
                                             _________   __________  _____
                                                -         239.1      217.4
Costs of fundamental reorganisation             -          (5.8)      (5.2)
___________________________________________  _________   __________  _____
Total exceptional items                       (0.1)       235.2      214.0
===========================================  =========   ==========  =====

The profit of £0.9m relating to Motors sales and terminations is net of a 
£4.1m provision release relating to sale of operations.  The original charge 
for the provision was made in 1999.
The loss of £0.9m relating to non-Motors sales and terminations is net of a 
£11.3m provision release relating to sale and termination of operations.  
The original charge for the provision was made in 1998.


5 Earnings per ordinary share
__________________________________________________________________________
                                        Six months   Six months   Year to
                                        to 30.6.00   to 30.6.99  31.12.99
Based on the profit for the period:              £m           £m        £m
__________________________________________________________________________
Headline profit before tax                    30.0         40.9      85.3
Taxation on Headline profit                   (9.8)       (14.9)    (26.8)
Minority interests in Headline profit         (3.8)        (2.1)     (5.6)
___________________________________________  _________   __________  _____
Headline earnings                             16.4         23.9      52.9
Exceptional items - note 4                    (0.1)       235.2     214.0
Taxation on exceptional items                   -         (16.7)     (0.3)
Minority interests in exceptional items         -           0.1       0.2
___________________________________________  _________   __________  _____
Earnings                                      16.3        242.5     266.8
___________________________________________  _________   __________  ____

Headline earnings per share                   18.6p        27.1p     60.0p
Basic and diluted earnings per share          18.5p       274.9p    302.4p
===========================================  =========   ==========  =====

The weighted average number of fully paid shares in issue during the period
(interim 1999 restated for share consolidation - note 7), excluding those held
by the Inchcape Employee Trust, was 88,226,066 (interim 1999 & full year 1999
- 88,225,026).

The diluted earnings per share are calculated by adjusting the weighted 
average number of ordinary shares for the dilution arising from the exercise
of share options where the exercise price is less than the average market
price of the Company's ordinary shares during the period.  The adjusted
weighted average number of ordinary shares was 88,226,802 (interim 1999 -
88,225,026; full year 1999 - 88,228,664).


6 Taxation
__________________________________________________________________________
                                        Six months   Six months    Year to
                                        to 30.6.00   to 30.6.99   31.12.99
The charge for taxation includes
the following:                                 £m           £m         £m
__________________________________________________________________________
Overseas taxes                                8.6         15.1       24.2
Joint ventures                                1.1          1.4        2.8
Associates                                    0.4          2.0        3.4
===========================================  =========   ==========  ====


7 Dividends
__________________________________________________________________________
The interim dividend of 7.3p per ordinary share (interim 1999 - 7.0p) will be 
paid on 21 September 2000 to shareholders on the register on 18 August 2000.

A special dividend of 600p per ordinary share was paid to shareholders on 9 
July 1999, as adjusted for the share consolidation noted below.

A one for six share consolidation took place on 12 July 1999.  The number of 
shares in issue from that date has been 88,351,428 ordinary shares of 150p 
each (prior to consolidation - 530,108,568 shares of 25p each).


8 Post balance sheet events
__________________________________________________________________________
On 31 July 2000 the Group announced the disposal of it's 49% equity holding in

Toyota (GB) for a sum of £42.1m.  As the disposal is conditional on European 
Commission approval, the results are not shown as discontinued in this 
period.  The associate investment value at 30 June 2000 is £28.4m.  On this 
basis a profit of £13.7m, subject to costs, would have been recorded had the 
transaction been completed during the period under review, and no tax is 
payable on this disposal.  No historical goodwill is attached to this 
transaction.  The results of Toyota (GB) included within the Group results 
for the period include a loss before tax of £1.7m (first six months of 1999 
profit £2.1m; full year 1999 profit £5.0m).