Singapore Subsid's Results

Inchcape PLC
25 February 2002


             Inchcape Motors Limited 2001 Preliminary Results

Inchcape plc's quoted Singaporean subsidiary, Inchcape Motors Limited (IML)
announced its full year results for 2001 today. The early announcement of these
results is in connection with the pre-conditional offer, which the Inchcape
Group announced for the minority shares in IML on 7 February 2002. The offer is
pre-conditional on the Independent Directors of IML recommending, on or before
28 February 2002, that shareholders of IML accept the offer. Inchcape plc are
awaiting a response from the Independent Directors.

These results are in line with Inchcape plc's expectations. Inchcape plc's 
results will be announced on Monday 4 March 2002.

The highlights of the IML Group results are as follows; 

 
GROUP PROFIT AND LOSS ACCOUNT

                                                 2001    2000      2001    2000 
                                                  £m*     £m*       S$m     S$m
Turnover                                        424.2   392.8    1103.0  1021.4
Operating Profit                                 19.0    26.6      49.4    69.1
Exceptional Item                                  4.3       -      11.3       -
Interest                                          1.7     0.5       4.4     1.3
Profit before Tax                                25.0    27.1      65.1    70.4
Tax                                              (5.0)   (7.2)    (13.0)  (18.6)
Profit after Tax                                 20.0    19.9      52.1    51.8
Minority Interest                                (0.1)   (0.9)     (0.3)   (2.4)
Dividends                                        (7.1)   (7.1)    (18.5)  (18.5)
Surplus deficit for the year                     12.8    11.9      33.3    30.9
Earnings per share (S$/£)                        0.12    0.11      0.32    0.30

*At an assumed rate of S$2.60 = £

GROUP BALANCE SHEET

                                                 2001    2000      2001    2000 
                                                  £m*     £m*       S$m     S$m 
Share Capital                                    31.5    31.5      81.8    81.8
Reserves                                        
      Non-distributable                           5.9     7.4      15.3    19.3
      Distributable                              76.7    62.4     199.5   162.2
                                                114.1   101.3     296.6   263.3
Minority Interests                                3.1     7.7       8.1    20.0
                                                117.2   109.0     304.7   283.3

Represented by:

Fixed assets                                     19.8    20.9      51.5    54.2
Long-term debtors                                   -    53.3         -   138.5
Non current liability-deferred tax               (0.3)   (0.3)     (0.7)   (0.7)
Other current assets                             48.9    97.8     127.1   254.3
Other current liabilities                       (35.7)  (54.4)    (92.7) (141.5)
Cash/(borrowings)
       Cash and bank balances                    42.3    42.9     109.9   111.5
       Deposits with a related company           42.6     3.5     110.6     9.2
       Short-term bank borrowings (unsecured)    (0.4)   (1.0)     (1.0)   (2.6)
       Other short-term borrowings (unsecured)      -   (53.7)        -  (139.6)
                                                 84.5    (8.3)    219.5   (21.5)
NET ASSETS                                      117.2   109.0     304.7   283.3

* At an assumed rate of S$2.60 = £

 
EXTRACTS FROM IML'S CHAIRMAN'S STATEMENT 

PERFORMANCE

'The Group's profit, at after tax level, improved marginally by 1% to $52.1m,
with the benefit of an exceptional non-taxable profit on the sale of IRB Finance
Bhd of $11.3m which offset lower operating profits.

Turnover for the continuing businesses grew by 11% to $1,103m, although the
vehicle market shrank by 2.4% in Singapore, in terms of total vehicle volume, to
76,504 units (2000 : 78,375 units) and by 1.5% in Brunei to an estimated 5,032
units (2000 ; 5,110 units). Overall market share in Singapore increased to 22.6%
(2000 : 21.5%), but in Brunei, it slipped to 20.4% (2000 : 23.9%).

Despite higher turnover, operating profit declined 15% for the continuing
businesses as margins were squeezed further by the intense competition for
market share.

Interest income rose significantly from the additional funds released by the
sale of IRB Finance Bhd, which contributed proceeds of $39.6m and eliminated
borrowings of $135.5m from the Group's balance sheet, and better management of
working capital.

Yields, however, deteriorated because of the softening interest rates on cash
deposits.

During the year, a review of investment opportunities in motor-related
activities was conducted without success because of an absence of suitable
opportunities and the adverse economic environment. The Group continues to place
its surplus funds on short-term deposits pending a further review of the use of
these funds.'

DIVIDENDS

'Your directors are recommending for approval at the Annual General Meeting the
payment of a final dividend for 2001 of 10 cents (2000:10 cents) per share
before tax of 24.5 per cent.

Together with the interim dividend of 5 cents (2000: 5 cents) per share before
tax of 24.5 per cent, the total dividend for the year will be 15 cents (2000: 15
cents) per share before tax.'

PROSPECTS

'The motors market volume in Singapore for 2002, in terms of the quota for
Certificates of Entitlement, is forecast to decrease. Based on the projected
scrapping of vehicles and a growth of 3% permitted by the Singapore transport
authorities, this could be up to 15%. The reduced size of the market coupled
with the implementation of 'open-bidding' to replace the 'closed-bidding'
system, with effect from April 2002, are likely to ensure that competition for
market share will remain intense, and margins are subjected to further pressure.

In Brunei, the motors market is expected to improve following the reduction of
import duties for new vehicles, but this will not have a significant impact on
the Group's results.

The directors are therefore of the view that the operating profits for the
continuing businesses for 2002 are likely to be less than that of 2001.'

The full text of this announcement issued to Singapore market can be accessed at
the website of the Singapore Exchange Limited, www.sgx.com.sg

Notes to editors

For further information, please contact;

Group Communications, Inchcape plc 
020 7546 0022

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


25 February 2002


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            The company news service from the London Stock Exchange