Pre-close trading statement

Inchcape PLC
13 December 2004

13 December 2004

                      Inchcape pre-close trading statement

Trading update

Inchcape plc, the international automotive services group, will enter a close
period on 1 January 2005 ahead of its preliminary results announcement, for the
year ending 31 December 2004, on 28 February 2005.

Since our last update, issued on 2 August 2004, overall trading conditions have
been more favourable than anticipated. Profit before goodwill amortisation and
exceptional items is therefore expected to be slightly higher than the current
market consensus of £165.5m*, which itself is some 21.9% above the equivalent
figure for 2003.

In the UK (14.8% of operating profit**) our Retail business has been trading
broadly in line with our previous expectations despite conditions in the second
half being more difficult than in the first. However, trading at Inchcape
Automotive, our refurbishment and logistics business, has not improved and its
contribution will be lower than last year. Allied to the previously announced
changes to our Ferrari/Maserati business these factors mean that the UK business
overall will not meet our previous expectations, although we still expect the
performance to be well ahead of last year.

In Greece and Belgium (23.2% of operating profit**) supply constraints are
easing and trading has been in line with expectations. Sales and profit growth
from our businesses in the Balkans will help this region record a similar level
of profit compared to 2003, despite last year benefiting from a £2.5m one off
profit.

In Australia (15.4% of operating profit**) our performance has been strong, as
previously predicted.

In Hong Kong (16.1% of operating profit**) the car market has continued its
steady recovery and has been slightly stronger than expected.

In Singapore (33.9% of operating profit**) the additional Certificates of
Entitlement, which were announced by the Government in late September 2004, mean
that trading in the final quarter of the year will be stronger than anticipated.

This strong overall performance demonstrates the benefits of our strategy of
growing with selected manufacturer partners in, or adjacent to, our core
markets, and of our geographic spread, which remains an important factor in the
quality and sustainability of our earnings progression.

*Source: Reuters Estimates
**Represents the percentage of total Group operating profit, before goodwill
amortisation and exceptional items, of £140.8m for the year ended 31 December
2003

Goodwill

As a result of the more difficult trading conditions experienced by Inchcape
Automotive, it is expected that the year end accounts will include a goodwill
impairment charge of around £9.0m relating to this business. Inchcape remains
confident that it can still develop a class-leading automotive services group,
which makes a good return on investment. This will, however, take longer than
originally anticipated and it is therefore appropriate to accelerate the
amortisation of the goodwill.

Cash repatriation

Inchcape has had a mismatch between debt in the UK and cash held overseas for a
number of years, as it has been difficult to repatriate the cash in a fiscally
efficient manner. This has had an adverse effect on the Group's interest charge
due to interest rate differentials but has had no impact on liquidity,
investment plans, dividend payments or returns of capital to shareholders

We are pleased to announce that cash of c. £135.0m was repatriated to the UK in
November 2004. In addition we have also created the ability to repatriate
further amounts over the coming years. The associated tax cost with all of this
is not material to the Group but the impact on the interest charge will be
positive and significant.

                                    - Ends -

Notes to editors

For further information, please contact:

Group Communications, Inchcape plc
020 7546 0022

Hogarth Partnership Limited (John Olsen/Barnaby Fry)
020 7357 9477

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

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





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