Inchcape plc, the leading global automotive distributor, announces its preliminary results for the twelve months to 31 December 2025

Delivery against key metrics, +13% EPS growth,

and new £175m share buyback programme

 

• Delivery in FY 2025, against our medium term targets:

o    Inchcape volumes* up 3%, driven by market share gains in multiple markets and distribution contract wins

o    1% organic revenue growth to £9.1 billion, with improved momentum in H2; and reported revenue down (2)% due to impact of translational currency headwinds:

o    Positive momentum building in the Americas, with supportive market conditions

o    Australia resilient, management actions to address challenges in APAC

o    Continued market outperformance in Europe and Africa

o    Resilient 6.2% operating margins¹, adjusted PBT¹ of £443m, reported PBT of £406m, and capital allocation driving adjusted basic EPS¹ growth of +13%

o    Divestment of non-core assets contributed c.£17m to adjusted PBT¹ in FY 2025

 

•   Strong free cash flow conversion and robust balance sheet enables another year of significant shareholder returns:

o    Cash generative and capital-light business model delivers free cashflow conversion¹ of 104% to adjusted PAT (FY 2024: 151%), free cash flow¹ of £315m and strong ROCE¹ of 29%

o    Robust balance sheet maintained - leverage of 0.4x net debt/EBITDA, with capacity to continue our disciplined approach to capital allocation 

o    £250m buyback programme completed on 2 March 2026, acquiring approximately 9% of the company's equity

o    Full year DPS up 13% to 32.3p, in-line with dividend policy of 40% adjusted basic EPS¹ payout ratio

o    Disciplined approach to capital allocation continues with announcement today of new £175m buyback programme

 

•    Further execution against Accelerate+ strategy:

o    Scaling efficiently, with 10 contract wins, as well as value-accretive acquisition in Iceland

o    Contract wins include GAC AION in Greece, Iveco in Hong Kong and XPENG in Colombia; contract exits include Geely in three small Americas markets

o    Renewal of financially immaterial BYD Belux contract not anticipated, as BYD continues to in-source distribution in medium to large scale markets in Europe

o    Continued optimisation of our business, with actions on cost reduction, capital recycling, contract portfolio optimisation, enhanced OEM collaboration and strong focus on cash generation 

 

•    A year of growth in FY 2026**, in line with our medium term guidance:

o    Organic volume growth towards the lower end of our 3% - 5% guidance range, with H2-weighted performance

o    Resilient operating margins of c.6%, free cashflow conversion of c.100% and EPS growth of >10%

 

Duncan Tait, Group Chief Executive, commented:

 

"During a transformative year in the automotive sector in FY 2025, Inchcape's diversified and scaled business model delivered results in line with our medium-term targets, reporting double-digit EPS growth. Our performance in 2025 was driven by good momentum in our Americas and Europe and Africa regions and we are taking actions to address challenges in APAC.

 

"We made further strategic progress during the year, winning 10 new distribution contracts. In addition, we executed a value-accretive bolt-on acquisition in Iceland, a new market for Inchcape, enabled by our highly cash generative business model and strong balance sheet. We have a healthy pipeline of bolt-on acquisitions to help us access future growth. We also continue to deliver value for shareholders, with most of our £250m share buyback programme executed last year, and a new £175m programme for 2026, announced today.

 

"Looking ahead, we expect to deliver a year of growth in FY 2026, including adjusted EPS growth of >10%, with volume growth, resilient margins, supported by strong execution and discipline on costs, and cash conversion." 

 

* New vehicle registrations

** At constant currency

in £m, unless otherwise stated	2025	2024	% change reported	% change constant FX1	% change organic2
Key financials (continuing operations)
Revenue	9,100	9,263	(2)%	-%	+1%
Adjusted Operating Profit1	563	584	(4)%	(1)%
Adjusted Operating Margin1	6.2%	6.3%	(10)bps	(10)bps
Adjusted Profit Before Tax1	443	444	-%	+3%
Adjusted Basic EPS1	80.8p	71.3p	+13%	+17%
Dividend Per Share	32.3p	28.5p	+13%
Free Cash Flow1	315	462	(32)%
Reported financials
Operating Profit (continuing operations)	526	562	(6)%
Operating Margin (continuing operations)	5.8%	6.1%	(30)bps
Profit Before Tax (continuing operations)	406	414	(2)%
Total profit for the period	273	435	(37)%
Basic EPS (continuing operations)	72.5p	66.4p	+9%	+13%
Net cash generated from operating activities	385	586	(34)%

 

1.   These measures are Alternative Performance Measures, see Note12

2.   Organic growth is defined as revenue growth in operations that have been open for at least a year at constant foreign exchange rates. See Note 12 APMs

 

Results presentations

A presentation for analysts and investors will be held today, Tuesday 3^rd March 2026, at 08:30 GMT. The presentation will be held at the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS. To register for the webcast of the event please follow this link, or to register for conference call access please follow this link. A replay of the analyst presentation will be available via the Company's website, www.inchcape.com later today.

 

Management will also be hosting a presentation for investors on the Engage Investor platform on Monday 9^th March 2026, at 14:00 GMT. Questions can be pre-submitted on the platform or at any time during the live presentation. Investors can sign up to Engage Investor at no cost and follow Inchcape plc from their personalised investor hub. To register for the event please follow this link.

 

Dividend timetable
Ex-dividend date for 2025 full year dividend	7 May 2026
Record date	8 May 2026
Last election date	22 May 2026
Payment date	15 June 2026

 

Financial calendar
Q1 trading update	30 April 2026
AGM	14 May 2026
2026 interim results	28 July 2026
Q3 trading update	22 October 2026

Contacts

Inchcape plc (investor enquiries):
Rob Gurner		+44 (0)7825 189 088	investors@inchcape.com
Rachel Masser
DGA Group (media enquiries):
Emma Walsh		+44 (0)7510 385 554	inchcape@dgagroup.com
James Styles

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)	2025	2024	% change reported	% change constant FX1	% change organic2
Revenue	9,100	9,263	(2)%	-%	+1%
Adjusted Operating Profit1	563	584	(4)%	(1)%
Adjusted Operating Margin1	6.2%	6.3%	(10)bps	(10)bps
Adjusted Profit Before Tax1	443	444	-%	-%
Free Cash Flow1	315	462	(32)%
Return on Capital Employed1	29%	27%	190bps

1.   These measures are Alternative Performance Measures, see Note 12 

2.   Organic growth is defined as revenue growth in operations that have been open for at least a year at constant foreign exchange rates, see Note 12 APMs

  

FY 2025 results - performance review

Against a backdrop of a transforming industry, Inchcape delivered against key metrics during FY 2025, executing in line with the Group's Accelerate+ strategy, with higher volumes in H2. Our performance was driven by market share gains across multiple markets and a meaningful contribution from Distribution contract wins, partially offset by the impact of challenges in APAC. This operational and financial delivery was enhanced by management actions on cost reduction, which underpinned resilient operating margins.

Group revenue of £9.1bn, was up 1% organically, and flat compared to the prior year in constant currency, with a meaningful contribution from Distribution contract wins, and improved momentum during the second half of the year.  Translational currency headwinds of (2)%, meant that Group revenues were down (2)% on a reported basis.

Adjusted operating profit¹ of £563m was down (1)% in constant currency. The impact of regional mix on gross margins was largely offset by cost discipline, with adjusted operating margins¹ resilient at 6.2% (2024: 6.3%). As part of the Group's capital recycling strategy, the divestment of non-core assets contributed c.£17m to adjusted operating profit and, subsequently, adjusted profit before tax. Overheads, represented as the ratio of adjusted net operating expenses to revenue, were lower at 10.8% (2024: 11.0%). As a result of the adverse impact of translational currency movements, reported adjusted operating profit was down (4)% and reported operating profit was down (6)%.  Adjusted net finance costs¹ decreased to £123m (2024: £142m), driven by lower average net debt and a more favourable interest rate environment.

Adjusted profit before tax¹ was up 3% in constant currency to £443m, and after the effect of currency translation, was flat on the prior year, tracking revenue performance. Adjusted basic EPS¹ was up 13% to 80.8p, ahead of the Group's medium-term target, supported by a reduced number of shares in issue, as a result of share buyback programmes executed during the year and the effect of averaging the previous year's share buyback programme.

Pre-tax adjusting items amounted to an expense of £(37)m (2024: £(30)m). This was primarily driven by one-off costs related to acquisition and integration of £(10)m (2024: £(42)m), mainly in relation to the final stages of the Derco integration, and restructuring costs of £(23)m (2024: £nil) which predominantly related to cost reduction actions initiated during the year. A loss of £(4)m was recorded on the finalisation of the completion accounts relating to the 2024 disposal of the non-genuine parts business in Chile (2024: gain of £6m). After adjusting items, reported profit before tax was £406m (2024: £414m). Ethiopia ceased to be recognised as a hyperinflation economy during the year, eliminating the non-operational losses arising from hyperinflationary accounting when compared to the previous year.

Free cash flow¹ generation was £315m (2024: £462m), representing a conversion of adjusted profit after tax to free cash flow of 104% (2024: 151%), in line with the Group's medium-term target. This was supported by a working capital inflow of £31m (2024: inflow of £195m), reflecting a reversal in H2 of the majority of the build-up of inventory from certain OEMs during H1, to support supply phasing ahead of planned production outages due to assembly line upgrades. As a result of these short-term supply dynamics, as well as inventory from the Iceland acquisition, inventory increased to £2,043m (2024: £1,935m).

 

As at 31 December 2025, Group adjusted net debt¹ amounted to £264m (excluding lease liabilities). Free cash flow of £315m was offset by cash outflows of £(339)m relating to dividends and share buybacks, £(29)m of net M&A spend and £(21)m related to FX and other items. Including lease liabilities, the Group ended the year with net debt of £607m (2024: net debt of £492m). Inchcape's balance sheet remains robust, with Group leverage of approximately 0.4x at 31 December 2025, down from 0.6x at 30 June 2025 and up from 0.3x at the end of 2024 (following receipt of the proceeds from the disposal of the UK retail business in August 2024).  Return on capital employed¹ during the year was 29%, an increase of 2% from 2024.

 

Q4 2025 performance

Q4 2025 Group revenue was up 4% on a reported basis, and up 3% in constant currency, to £2.4bn, including 2% organic growth². This was supported by continued positive momentum in the Americas and a strong performance in Europe and Africa, partly offset by challenges in APAC.

Strategic overview

During FY 2025, market volumes across our markets grew by 2%, with indirect impact of tariff-related disruption affecting demand in the first half of the year. The macro environment improved in the second half in a number of our markets, particularly in the Americas and the Europe and Africa Regions, offsetting a more challenging backdrop in APAC.

Further progress against Accelerate+ strategy

In this market environment, we continued to execute against our Accelerate+ strategy in FY 2025, by scaling and optimising across our regions. Our objective is 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

We have continued to grow our base of distribution contracts through acquisitions and contract wins. In FY 2025, we continued to grow volumes from contracts won in previous years, with these contracts being a key driver of our organic revenue growth in FY 2025. In addition, we were awarded ten new distribution contracts during the year, with existing OEM brands including New Holland in Kenya and Ethiopia, BYD in Lithuania and Latvia, XPENG in Colombia and GAC AION in Greece, as well as new partners Smart in Colombia, Uruguay and Ecuador and Iveco in Hong Kong.

These wins demonstrate the essential role that Inchcape plays in the automotive industry as a critical partner for OEMs in smaller, more complex markets, where we drive market share and volume growth for our brand partners. However, BYD continues to in-source automotive distribution in medium to large scale markets in Europe. Despite Inchcape performing well for BYD in Belux since our appointment as their automotive distributor in 2022, we do not anticipate that this financially immaterial contract will be renewed (expiration - Q3 2027). We are not seeing any similar in-sourcing of automotive distribution by any other OEMs.

 

Optimising across our business

To drive operational execution, we continued to optimise our business in a number of ways during the year. Firstly, we rationalised our brand portfolio, mutually exiting four immaterial contracts with Komatsu in Ethiopia and three Geely contracts in smaller markets in the Americas. In addition, we continued to recycle capital by divesting non-core assets and we grew our third-party retail network, enabling broader geographic coverage within our markets in a capital-efficient way.

 

We also optimised our business by further collaborating with our OEM partners on product and inventory management, supported by our consistent execution and differentiated technology-based Sales and Operational Planning processes. In addition, during the year, we initiated a cost reduction programme, particularly focused on the APAC region. We also continued to drive the penetration of Value-Added Services, in particular aftersales and Finance & Insurance capabilities across each of our regions.

 

Capital allocation - our disciplined, returns-based, approach

Inchcape's capital allocation policy remains focused on creating shareholder value in a disciplined and returns-focused way, with dividends at 40% of adjusted basic EPS, a commitment to ongoing share buybacks and value-accretive acquisitions. We have delivered against all of these capital allocation elements in FY 2025.

 

During the year, we completed a £150m share buyback programme, announced in August 2024. We also purchased shares under the subsequent £250m share buyback programme, announced in March 2025 (the latter programme completed on 2 March 2026). With the completion of these two programmes, the Group has re-purchased c.13% of its shares in issue since August 2024. To underline our ongoing commitment to share buybacks, and in light of the capacity on our balance sheet, we are launching a new £175m share buyback programme, which will commence immediately and is expected to complete over the next 12 months.

 

In total, between FY 2019 and FY 2025, the Group returned approximately £1.3 billion in cash to shareholders in dividends and buybacks.

 

During Q3 2025, the Group invested £35m, in cash, in acquiring 100% of the shares of the leading Icelandic automotive distributor, Askja and its associated companies, which represents our entry into an exciting new market for the Group. Looking ahead, our bolt-on acquisition pipeline remains healthy, and will continue to provide opportunities for Inchcape to access future growth, and we remain disciplined in our approach to valuations.

 

The Board is proposing a final dividend for the year of 22.8p, bringing the full-year dividend to 32.3p (2024: 28.5p).

 

Outlook - a year of growth in FY 2026*, in line with our medium term guidance 

Inchcape expects to deliver a year of growth in FY 2026*, in line with our medium-term guidance. This will be achieved by the delivery of organic volume growth towards the lower end of our 3% - 5% guidance range, supported by the contribution from Distribution contract wins. We expect continued momentum in the Americas and Europe and Africa Regions, while we are addressing the challenges in APAC.

 

In FY 2026, we expect resilient adjusted operating margins of c.6%, in line with our medium-term guidance, to be supported by further penetration in aftersales and Finance & Insurance, enhanced collaboration with our OEM partners on product line-up and positioning, and management actions on cost reduction. We also expect to deliver free cashflow conversion of c.100% during the year, with EPS growth of >10%. Our performance in FY 2026 will be skewed towards the second half, due to the usual seasonality in the Americas and supply phasing in APAC.

 

We reiterate our medium-term targets, which will be delivered through our highly cash generative and capital-light business model and a disciplined approach to capital allocation. To that end, from the start of FY 2025 to the end of 2030, we continue to expect to generate £2.5 billion in free cash flow, which will be deployed through disciplined capital allocation to deliver >10% EPS CAGR.

* At constant currency

Operating and financial review

			% change reported	% change constant FX	% change organic2
in £m, unless otherwise stated
	2025	2024
Revenue
APAC	2,541	2,995	(15)%	(12)%	(12)%
Europe & Africa	3,255	3,003	+8%	+7%	+6%
Americas	3,304	3,265	+1%	+5%	+8%
Total	9,100	9,263	(2)%	-%	+1%
Adjusted operating profit1
APAC	182	235	(23)%	(19)%
Europe & Africa	151	142	+6%	+6%
Americas	230	207	+11%	+16%
Total	563	584	(4)%	(1)%
Adjusted operating margin1
APAC	7.2%	7.8%	(60)bps	(60)bps
Europe & Africa	4.6%	4.7%	(10)bps	-bps
Americas	7.0%	6.3%	+70bps	+70bps
Total	6.2%	6.3%	(10)bps	(10)bps

See Note 2 for segmental definitions.

 

APAC (28% of revenue and 32% of adjusted operating profit) - Australia resilient, management actions to address challenges in APAC 

Market volumes were down (1)%, while Inchcape's  organic revenue declined (12%), with an improved H2 performance supported by product launches. Markets were highly competitive across the APAC region, while the premium segment remained weak. Australia, our largest business in the region, was resilient, but our Asian markets underperformed during the year. As a result of lower revenues, adjusted operating margins¹ contracted by (60)bps to 7.2%, despite a £9m contribution to profits from non-core asset divestments in H2. Actions were instigated during the year to protect margins, including a cost reduction programme and enhanced OEM collaboration on product positioning and inventory management. For FY 2026, it is expected that Australia remains stable but challenges in in other markets in the region are expected to continue, with production disruption impacting certain APAC markets in H1. We expect operating margins to be supported through the ongoing implementation of management actions.

Europe & Africa (36% of revenue and 27% of adjusted operating profit) - continued market outperformance

Market volumes were up 3%, with organic revenue growth ahead of the market at 6%, supported by Distribution contracts won in recent years, with BYD Belux contributing <5% of regional revenue. The group's acquisition in Iceland is performing well, while there was a particularly strong performance across the Group's businesses in Southern Europe, supported by consumer take-up of a range of hybrid products. Africa continued to grow through Distribution contract expansion. Adjusted operating margins¹ were down 10bps to 4.6%, with gross margin resilience and operating leverage from scale offsetting initial dilution from new Distribution contracts, as expected. During FY 2026, growth rates are set to slow in certain markets, which will be partly offset by the full year contribution of Iceland and continued operational execution and momentum across the region, as well as the growing contribution from the multiple distribution contracts in recent years.

Americas (36% of revenue and 41% of adjusted operating profit) - positive momentum building, with supportive market conditions 

Market volumes and organic revenue were both up 8%, with growth in Inchcape volumes and revenues weighted towards the second half of the year, supported by a recovery in key markets and the usual seasonal H2-weighting across the region. Core brand growth offset the impact from recently exited brands, resulting in stable market share across the Region. There was a strong performance in our scaled markets, including Chile, Colombia and Peru, offsetting weakness in certain markets, like Costa Rica. Adjusted operating margins¹ were up 70 basis points from FY 2024 to 7.0% reflecting resilient gross margins, operating leverage from higher volumes and the efficient scaling of our business through cost discipline and capital recycling, with £8m contribution to profits from non-core asset divestments. For FY 2026, the Group expects the market environment to remain supportive, with the typical seasonal weighting towards the second half, resulting in profitable growth for the full year. 

 

1.   Operating profit and operating margin are stated before adjusting items. Adjusted operating margins are stated at constant currency 

2.   Organic growth is defined as revenue growth in operations that have been open for at least a year at constant foreign exchange rates. Note 12 APMs

 

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

 

	2025	2024	% change reported	% change constant FX
	£m	£m
Gross Profit
Vehicles	1,090	1,120	(3)%	-%
Aftersales	460	486	(5)%	(2)%
Total	1,550	1,606	(3)%	(1)%

During the year, the Group generated 30% of gross profit from aftersales (2024: 30%), which was a resilient performance, given Inchcape disposed of a non-core retail aftersales business in Chile during the year. Excluding this divestment, aftersales gross profit grew 4%, on a constant currency basis, in FY 2025.

Other financial items

Adjusting items: During the year, pre-tax adjusting items amounted to an expense of £(37)m (2024: £(30)m). This was primarily driven by one-off costs related to acquisition and integration of £(10)m (2024: £(42)m), mainly relating to the final stages of the Derco integration, restructuring costs of £(23)m (2024: £nil), predominantly relating to cost reduction actions initiated during the year, and adjustments in relation to the finalisation of the 2024 disposal of the non-genuine parts business in Chile of £(4)m (2024: £6m gain).  After adjusting items, reported profit before tax was £406m (2024: £414m).

Net financing costs: Adjusted net finance costs reduced to £123m (2024: £142m), driven by lower average net debt and a more favourable interest rate environment.

Tax: The income tax charge of £133m (2024: £129m) represented an effective tax rate of 32.8% (2024: 31.2%). The effective tax rate on adjusted profit before tax is 31.4% (2024: 31.3%).

Non-controlling interests: Profits attributable to our non-controlling interests decreased to £1m (2024: £14m), which was impacted by underperformance in the Philippines and Indonesia. 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 proposed a final dividend of 22.8p, which is subject to the approval of shareholders at the 2026 Annual general meeting, and if approved will be paid on 15 June 2026 to shareholders on the register at close of business on 8 May 2026. This follows an interim dividend of 9.5p, and takes the total full year dividend in respect of FY 2025 to 32.3p, up 13% from the prior year. The Dividend Reinvestment Plan is available to ordinary shareholders and the final date for receipt of elections to participate is 22 May 2026.

Capital expenditure: During 2025, the Group incurred net capital expenditure of £22m (2024: £70m), consisting of £48m gross capital expenditure (2024: £79m) and £26m of proceeds from the sale of property (2024: £9m). This reduction in capital expenditure is a result of the Group's continued optimisation of its third party retail network, which enables its capital-light business model.

Financing: As at 31 December 2025, the funding structure of the Group is comprised of a committed syndicated revolving credit facility of £900m (2024: £900m), sterling Private Placement Loan Notes totalling £140m (2024: £140m), and a five-year bond of £350m, at a fixed coupon of 6.5%. As at 31 December 2025 the syndicated revolving credit facility was drawn £20m (2024: £55m). Excluding the Revolving Credit Facility, all of the Group's corporate debt is fixed rate and is not due to be repaid before May 2027. The Group continues to operate comfortably within its debt covenants.

Pensions: As at 31 December 2025, the IAS 19 net post-retirement surplus was  £21m (2024: £23m), with the decrease driven largely by lower than expected returns on scheme assets partially offset by changes in demographic and financial assumptions affecting the scheme liabilities. In line with the funding programme agreed with the Trustees, the Group made additional cash contributions to the UK pension schemes of £1m (2024: £1m).

 

Foreign currency translation: The impact of foreign currency translation on adjusted profit before tax was (3)%, driven by the strengthening of the GBP (see following page for sensitivity analysis) against the majority of the Group's currencies.  The impact of foreign currency translation on the assets and liabilities of the Group's foreign operations resulted in a loss of £(13)m (2024: £(245)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 and the Chilean 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, the Singaporean Dollar, the Colombian Peso and the Peruvian Sol. 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 operates in a dynamic global environment and is exposed to a range of principal risks, including margin pressure, macroeconomic and geopolitical uncertainty, supply chain disruption, cyber and IT resilience, people and skills, transformation delivery, health and safety, regulatory compliance, and the ongoing transition to electric vehicles. Whilst operating with competitive pressures and external economic uncertainty, these risks are actively managed through delivery of the Group's Accelerate + strategy, including optimising the product and brand mix, expanding our global footprint, and 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.

 

During the year, the Group Executive Team and Board approved the Company's principal risk profile which was refreshed in Q1 2025. The refresh was in response to ensuring our risks remained aligned to the changes in the external environment and the new Accelerate+ strategic priorities. Whilst the risks largely remain in substance, we have reduced the number of principal risks from 17 to 12 to better reflect the current risk landscape and related risks, ensuring a clearer and more integrated view of the challenges facing the business. These adjustments ensure that the Company remains resilient and well-positioned to achieve its objectives while responding proactively to new and changing risks. The key changes consisted mainly of a consolidation of people risks, external risk i.e. macroeconomic and geopolitical uncertainties, cyber and systems risks, and compliance related risks i.e. legal, regulatory and financial reporting.

 

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 to change, as demonstrated by the establishment of a Tariff Task Force in early 2025. Ongoing monitoring and enhancement of risk management practices support the Group in addressing emerging risks associated with acquisitions, regulatory change, and significant external events.

APPENDIX - REGIONAL BUSINESS MODELS

Americas
Country	Brands
Argentina	Subaru, Suzuki
Barbados¹	Changan, Chrysler, Daimler Trucks, 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, Renault, 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, XCMG, XPENG
Costa Rica	Avatr, Changan, Deepal, JAC, Suzuki
Ecuador	Freightliner, Forland, Mercedes-Benz, smart, Subaru, 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, Toyota
Guam²	BMW, Chevrolet, Lexus, Toyota, Morrico heavy equipment
Hong Kong	Daihatsu, Hino, Iveco, Jaguar, Land Rover, Lexus, Maxus, ORA, 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, Harley Davidson, Jaguar, Land Rover, Mazda, Mercedes-Benz, Ram
Thailand	Jaguar, Land Rover, Tata Motors
Australia	Deepal, Citroen, 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	Lexus, 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