Group 1 Automotive (GPI) 30 Oct 242024 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to Group 1 Automotive's Third Quarter 2024 Financial Results Conference Call. Please be advised that this call is being recorded. I would now like to turn the floor over to Mr. Peter DeLongchamps, Group 1's Senior Vice President, Manufacturer Relations and Financial Services. Please go ahead, Mr. DeLongchamps.

Jamie. you, Thank and everyone, today's call. Good welcome morning, to call morning earnings related slide related the we Group on to posted have this release issued and this to presentation refer adjusted X we a comparison to results purposes been The the will for that website. include reconciliations

of mentioned to made some of Except measures. the non-GAAP remarks begin, X Act during conference Reform forward-looking statements about Group information call, the we of management forward-looking Securities Private the Before are make statements are I'd by financial pursuant for like XXXX. Litigation made of brief safe statements and use Automotive historical the provisions harbor that to

component in Securities both risks risks materially and markets, for new manufacturer unknown due the differ supply involve risks may from demand related resulting and filings described demand forecasted statements on increased results. levels cause in pricing, reduced adverse risks successful but impacts with other global known used due to, periods actual limited future to are not customer Those to which Forward-looking Commission. the inventory economy the results volume, include, conditions associated vehicles uncertainties, the in company's and and acquisitions to with services. and and developments production and are of Exchange and integration shortages, Those company's of and

as SEC may rules measures under be this defined financial non-GAAP call. on certain addition, In discussed

President hand our like Financial on call reconciliations website. Participating President company Kenningham, Chief Officer; rules, directly SEC provides now As such Daryl. today's measures the applicable the the Officer. I'd to Senior Daniel any McHenry, Executive on Chief call, over with measures its required most to Vice and non-GAAP by of and comparable and GAAP me Daryl financial to

I'll the the U.S. you, Thank in quarter. business. in the we Thanks pleased with great Good our U.K., our with and start our were morning, everyone. teams to U.K. performance Pete.

revenue retail billion Wales. In separate additional from hubs key a previously-announced the adding such we transaction, XX During Midlands, acquired transaction, London. as and the in in also the closed England on of the X $X.X north we Inchcape quarter, dealerships of dealerships Mercedes-Benz Northwest

closed BMW on Lincoln, in a recently we Additionally, store England. large

Toyota, to deep leadership appointed and We him and CEO sound. We are his our strongest in us our X, leverage. leaders. U.K. outstanding dealerships Mark that scale we've now focus. On been SG&A strengthen able Mark encouraged relationship retail commitment financially and new A X brand significantly BMW, Inchcape relationships in and industry U.K. as close Ford. of already performance partners is both leadership of in us are X of team portfolio. The now operationally integration both He's market. like our the on our Raban in company Mark critical Group mix we've brands will U.K., with pace the and ever comprised legacy improve Mercedes-Benz, the these team with and and joined based and business. Land geographic U.K. October brings public our our to growth the size had Group knowledge has significant Because with by leaders of have give Volkswagen, reach Audi, of great Rover our Porsche, OEM

is our significant of have seen big of are a X the contributor on stores end the the XX have at and today many will XXXX. this upcoming and believe be by to integration Retail and also Group on expected that after the Inchcape X. In of organizations give we but it's shareholders. quickly, important bringing will comments, working more rest task days their and we that ownership, acquisition McHenry that to X finished his activities strength Based what corporate We several a specific examples of substantially organizations a Daniel hope and integration the we we've integrate to believe benefits. together It's Group confidence

slight Turning in market, were from to stores to late the a on for impact were the business There July moderate record on some third new hit our impact our saw Milton, from there we quarter since some quarter, Beryl week. it third was Houston, up October continuing U.S. impact as from Hurricane felt and We without impacts vehicle from the delivered. We largest used outage believe X. In didn't some were operations. power units There don't in Helene September. any until CDK

U.S. excellent profits our F&I Our held XX.X%. gross adjusted was business new vehicle well. leverage our up at performed And SG&A and well,

service which last pay. X X%, customer the increases Our good year-over-year business double-digit of quite considered off over U.S. same-store in we each grew coming quarters a of little

Our service grew in same-store in third currency business the local over quarter. U.K. XX%

believe well continue growth Group most is of area the future. there for opportunity tremendous view We as We aftersales And to way underinvested to our we into a a number differentiate for it is believe X. business. the reasons, of

to be adding and technicians successful and focus U.S. even are year, in putting X continue We into more retaining we more adding this. this technicians, the

that of turnover higher are lower an conditioning. and air engagement As example is our commitment, employee we in workshops know scores with

from XX% up United with began we We are well install over of to capital States, when our air underway the conditioning program shops just nearly project. XX% a the in in

with finished XXXX. be of by to expect this end substantially project the We

have on facility over empty the stalls have focused are retaining reach we long go still our we and to hiring capacity. in technicians, of limits U.S. before XXX we While a way We our store. believe we

X/X stall more technicians have stalls. staffing. do technician to However, U.S. count than we our this what is we Testament more stores XX have stores those be XX% to as of more stalls. on staff limiter specific, make a important we our that feel than view an have To technicians nearly is point, growing in not

also of technicians CP our come work the X/X future believe stores work Over customers last we into to have our without add continue some Aftersales limitations. And can physical one into done. who our So, business. we far for warranty on word facility

as that is work So continue see as a campaigns brands, a large bit these to of recalls CP. warranty some warranty of and incremental we we tailwind on from major long expect

regularly our evaluate don't we of partners. also in this that vehicle we other shareholders' is other believe our use focus. potentially adjacencies be business our in limits fundamentally, dilutes that to While franchise adjacencies, capital dealerships. We business should continue environment, returns, new it entering any believe, competes best the we OEM investing in but our with we And believe business

As this any examples performance confidence BMW, brand a that engage just we to the That our like Honda, on eligibility our acquisition on quite metrics. all We to of success. allows in view our acquisition year grown discussions and this rooted be criteria with Mercedes-Benz, will brands because brands nearly our we've of Lexus, our Porsche, ability us outstanding is desirable performance Audi acquire OEMs. to result relationships eligibility nearly we strong across perform the approved. The markets focus, are of with those Land all as in Rover well OEM Toyota, on in critical

of buybacks. allocation element important Another our share capital strategy is

We $XXX that is XX to bought we the should certainly aggressively. of the ahead, another with stock continue better XX% shareholders, we back pursue and stock We've months. our for million. repurchasing believe past we return This shares. year, capital repurchasing in our to repurchased company our will X.X% the of a dispositions In option balance months acquisitions to

over CFO, Daniel? McHenry, financial and an I'll Now, the Daniel our turn for call operating to overview.

up $X.XX. you, $XXX and across of million. We records In adjusted quarter vehicle all Automotive and Current from just XXXX, X on operations new adjusted basis. volume on all-time of driven the revenues with third We vehicles the demand record sale units new billion, had This in EPS continuing of quarter billion, stop of averages. Starting of These of stop sales acquisitions. $XXX GPU the U.S. end morning, reported $XXX.X of at an used our and all-time of operations. quarterly vehicle good revenues new business Thank net revenues GPU $X.X a Daryl, our quarterly over higher the billion, reflects sold, achieved record X% suppressing everyone. driving and used on emphasis continued all-time new sale diluted third new of towards parts quarter Group sales dealership total by of weighted lines, X,XXX resiliency record $X.X the income reported through an were quarterly models, slightly F&I vehicles billion, $X of and quarterly and including vehicle $X.X service vehicle million, million quarter.

GPU new basis, respectively. vehicle with vehicle reported the particularly models performance, pleased manufacturers, strong was are sale global $XXX other and given This We from and certain stop sequential up same-store model, stop X,XXX the and current the Lexus, only down on $XXX BMW which sequentially quarter. Used quarter from of and GPU our with a moderating affect increase With vehicle $XXX cars during $XXX. sequentially, did experienced models. a sales a the pricing certain X% unit up or units impacted used only global sale franchise volume same-store

We ability discipline hold are vehicles. is technology pleased We our to use with increase volume pricing process our believe and with pricing. used to testament this of and

million of revenues F&I the were quarterly a $XXX also Our for record U.S.

basis. Aftersales. of $X,XXX profits GPU outstanding gears were a and add These Same-store F&I to highs, ability year-over-year. professionals quarter up Aftersales quarterly gains been aftersales were and quarter respectively. on X% customer same-store warranty and Our The maintain year-over-year, has all-time basis to on the year-over-year. our and outperforming a for capacity and increased pay F&I to GPU same-store discipline. Shifting performance revenues gross sequentially our sequential-quarter XX.X% by demonstrate third revenues

U.S. non-technician from declined headcount same-store XX% has XXXX. overall Our

the headcount up is our However, technician XX% period. same over

levels SG&A. SG&A profit as alone. Wrapping sequentially basis have focus new As normalize. up demonstrating Daryl to X% we year managing technicians points earlier, added margins pre-COVID vehicle let's at to of adjusted continue to additional costs a U.S. our below on continued this U.S., decreased the X percentage shift XX.X%, added as gross

the to U.K. Turning

results, year-over-year. an a In total acquisition to activity XX.X% leading quarterly in increase terms fueled revenues, of record all-time headline

challenged sequential unit vehicle backdrop, in We manage able U.K. used quarter, increased vehicle on X%, thanks evidencing this to losses on our our with are inventory to market. retail in $XX. however, used year-over-year. improvements GPUs sequential wholesale per to a used compared same-store Despite gross declines better the pleased basis, to improved aftersales in new continued remained profit vehicle $XXX same-store a GPUs of basis. Same-store to $XX a Sequentially, focus same-store units tough and vehicle nearly maintain declined be

of a improved we sequentially, to gross a continue same-store cost whole, adjusted that challenges some we profit activities. as control execute the percent efficiencies U.K. XX and U.K. business process have overcome recognize for points basis we focus integration to our business on Although still we'll as and SG&A as

related principally at for nearly and systems activities integration to Inchcape include alignments, efficiency. been XX days workforce efforts operational aimed conversions Our have ongoing and

point a U.K. of as in basis saving We least XXX activities. the result SG&A these expect at a

are which increasing We positions, alignment believe XX% bringing increase functions the to workforce light aftersales for corporate outsourced change believe we a duplicative, Our gross primarily leadership and involve model dealerships model reductions those to an from will staffing generate improvements and Inchcape leaving in in our opportunities the from incurred from back-office an outsourced there will are technicians. at opinion, profit we support and in-house for by the additional costs room volume. headcount is as onboard previously services. Technician where savings

return-based single look operation-related processing additions We to such yield additional DMS credit expected returns. support higher to transactional conversions X us platform for nearly efficiencies. Operational create fees. as stores costs us headcount banking to card the will in System to and lower profit U.K., gross allowing are will also transition at activities opportunistically

X under in separate is maintaining operate Group U.K., a X name, to will expected brands. savings single We versus the marketing brand drive which

to and sheet Turning balance liquidity. our

Our approach. palpable allocation flexible to and a generation sheet, leverage support continue will flow strong cash and balance position

comprised million $XXX XX, of of accessible our borrow available cash million our As million to and of liquidity line. on was of September acquisition $XXX $XXX

as Our rent-adjusted the was ratio end at U.S. our credit of syndicated defined leverage X.XXx September. facility by

same a mortgage-related to cash $XXX properties. Cash This moderate out repurchases dividends in and acquisition our this period of for million through on flow was dividends, in of million Inchcape $XX.X an X.X% September million in of expect through deployed revenues count through close CapEx. average of to reduction backing of X; flow approximately XXX,XXX cash adjusted $XXX.XX, operating of generation quarter acquisitions, flow We a the including: price $XXX financing shareholders. at share after free $XXX as capital combination the third million billion XXXX yielded repurchasing million shares in $XXX of we $X.X since and and resulting share the in January XX;

in We During $X.X shares the million. for trading share repurchased a we million an under repurchase average price quarter, Board-authorized program. of cost at Rule plan XXbX-X $XXX fourth additional a total remaining currently our have per an of XX,XXX share common $XXX.XX common

for resulting XX, impact other debt basis $X.X the of funding fixed, September in secured in rate. increase annual approximately our and XXX in floorplan about was of $X.XX As XX% an of overnight EPS billion every point

to our website. I the financial details call additional news to additional our the of to release regarding the the investor For the attached as condition, posted on well information as the please session. will to refer over now question-and-answer turn operator presentation schedules begin

comes question from first Rajat from today Our JPMorgan. Instructions] [Operator Gupta

on and one one one-time question U.K. impacts had the all Just then on

that the for to work hurricane the those a to might mentioned CDK had continue flag that? excluding sales the that you buckets an the I'm follow-up you EPS, And aggregate on stop quarter, might any of of have baseline respect So, some especially headwinds. could I to offset in and fourth get headwinds. Curious issues, U.K. or some just quarter impacts, sale you recall fashion. lingering you with trying stop a quantify if third all in Anything those want some

things in little coming have EPS. And A the terms that I or and the would of of hurricane June. performed $X.XX terms our fairly terms have in the ahead that. our end biggest performed would rate of market, a first us We we It's And Houston out between our that peers we Daniel. CRM of a of July, that about where CDK or muddled which well $X.XX normal cost somewhere came hit shortage thought couple week basis. would that of XX% X basis market. July, at and to Early think expected say a I were of think outage. CDK is have in there. out I of we in I of of on run the

and have $X.XX -- been we terms which on profits to we've that that EPS. I would million that another at as those, the cost the and about assumption in us of In stop sold least of vehicles, vehicles about terms of in of stop would delivered $X.XX XX% X,XXX sell, those said, terms sell, $X.X on have for is expectation

the In the a couple But exposure that. end for in of of terms that quarter, was with one our had hurricane, of of limited hurricane. number a stores, to at we particular, the days closed

Got of that it. of Or $X.X on is million to may any I did recall stop work that, And have offset mean, some impact? net just that? clarify you the have sale that

something would we That said that. have work, did terms have gross in stop sale. terms The million of some in some work the netted off for estimate of BMW that -- recall $X.X recall gross was the for have I like would of profit

it. very Got clear... it. Got That's

work But we of out with anyway. have Rajat, would normal filled probably course,

in color capacity Got remarks. a appreciate it. right. Yes, us on Right, thing. And it's the all Got then U.K., you gave your it. prepared

XX% running full you You based mean, what for from gross, -- on result might mentioned SG&A close the third actions. like reduction U.K. XXX look at to your SG&A quarter to do I basis it's and Is now, the year. right that in if points all these just I

to I granularly mean, So, is that more year? a the opportunity in think done? we like all should of XX% help little integration could how going us you just that about terms next SG&A more once the is size

Daryl. Daniel I'm of is in. then part weigh that, this and going will answer Rajat, to

And performance. we've just U.K. some seen the organic opportunity on We performance. have in better

as saw quarter. a some matter used of it in of car this You the PRU fact,

the on and to we when one in percentage all expense savings DMS Group we combine as the spoke improving organizations we X together, growth. And some we're Daniel, those should of that but and things. see, there's a So, get we Inchcape improvement, still there, know now, including them effect of he SG&A

plus So, there's that. that still XXX benefit to based add points want on the the may some to Daniel organic basis improvements probably to color we see. more

So, terms based is today Rajat, in we're XXX that growth. around operating points basis of how

increase So should the the as we ability gross. is Daryl says, to that expand on there

feel it with about and last of least them. just optimistic closed great time at in stores better we than just the started other really once can one we time year, ever great better spending And U.K. those new a ever the bit the and just like we lot more discussions we we great than liked that we Rajat, acquisition feel months after a of this on all We acquisition the those lot. you, the quite last honestly, we XX first I markets spent today in X We when this over stores really in time feel think, And tell today. days, feel like I with And in have. opinion, today of stores opportunity, have. early a are

question John Murphy And from America. next comes of from our Bank

could you up on follow maybe Daniel, U.K. the

have at out look you this a now scale you this, As acquisition. tremendous of with there built guys amount

have platform more built U.K. opportunity a I now into you post in should or be on for might over few point side and may be market. a but opportunity the think reached might getting that where added the how done? the there Inchcape. that there You've mean, the view more is we be, deeper the about a this we M&A might acquisitions this But be lot market? acquisition optimistic now even you're you actually it, pessimist you somewhat That saturated environment

here. it's John, Daniel

largely over say larger has the that and acquisition. Lookers I large think for for Inchcape transacted been to a in waited the transacted. U.K. acquisitions we the It's they're number Pendragon of and today. the deals. are number Clearly, fair There's

there I is brand think portfolio the just excellent.

because stores I think more there, would add actively Mercedes tuck-ins we'll group the large continue bought that I with another the to in that like today. we luxury just out it's added have be stores pursuing there we BMW there's we likely think as and grow we don't

we store stores, tuck-ins they're on couple are which the in but less closed are a nice a little the store just agency. big the John. of Mercedes a X stores that's BMW in Some U.K. $XXX million, and The the weeks, really last is that, than of

So are million if you those $XX [Indiscernible]. look like $XXX at million,

it's decent-sized So, there's group. not even stuff some a though giant

that think we are mean, do the think point and home, now that's U.S.? the done if platforms sort deals this platforms think of do you just chunky pond in ] back U.K. about in at home So, could your regions, market tuck-in? I large -- more that across the the could X the Or that, both deals occur are [ be it's you the that X regionally, -- U.S. main in chunky these there the these

think We the U.S. other deals certain we're in in markets, already there be especially can as chunky that that including still, aren't some as in. markets built-out

So, in far were. United up some the fewer more out vulnerable scale with the It's certainly pleased the now yes, in U.K. there probably can whereas were we we deals before, rolled are that the in our be But U.K., still our much really States, U.K. size think chunky in there in also we we

we're feel good presence a really we Now that. and about with brands, significant great

don't We soon historically different longer we So, have larger we be more grow there's think how in competitive deals deals. the in U.S. taking some, and valuations any But are the have. opportunities get to very high. today for scale. than those on close some There's we know think they see U.K. here to don't to plenty expectations I come. of some will

I know in I we next don't to So, out. that but way I month think stuff at to sort they're if [ or come. has come still its year, next point, ]. will week, that think of some there's some think But other next some

industry pricing like this the saying implications not of consumers wave point. But consternation it's at bit surprising mean, the GPUs. little have also just about are ultimately obviously bit, the around on your follow-up mean, for in at side. maybe at moment. about may much this what take keeps I it Stellantis the one of mean, a around the it's a guesswork GPU GPUs? Lots inventory and and cross just lands? the the that And to all would what is which rising little pricing, sliding where but I And I upside. a bit

think, is, path slowing. in Well, is the path is the I inventory obvious too -- comment slowing. high, based the the glide think, even And brands glide is certainly on I yes, some where

with on So And quarter -- brands the certain high and of we better that saw inventories. expected. than we saw GPUs where those this probably we some are brands

through the by interest whether yet. there. gotten But [Indiscernible] already there. it's customers, up accreted that there's finance hopefully, don't interest that nothing as to there Fed a the rates, too resistance come points and don't from So, rate you the hasn't with is interest that was did rates resistance it's cut flowed know, more sense more aggressive have well. And -- of arms the But great also we deal leasing X fully

at issue. that So affordability you're more seeing some ammunition pointed

add, John, stop one mix thing mix models. higher those all brand sales with X% sales and I stop is our there's only that generally is brand Lexus. were of BMW of XX% GPU our would Clearly, and the

that deliver the had GPUs reduction to in able sold. been been for think quarter that we had I if extremely vehicles small have the would we

comes Our Lick from from question Stephens Inc. next Jeff

great a on Congrats quarter.

a Just around or you that if your they Inchcape so of Obviously, and I'm little disproportionate quarter. us there there, -- of new move just the how gross curious, be gross, on the there's take had just per much would can so a gross. are, by units acquisition. metric, bigger, appear or used help whether wondered bigger in. results. to way give every I And store, it's X digging great. magnitude they're you stores some be X stores Inchcape going into those having XX you curious, XX your acquired you per pick impact I'm perspective if Any

the in SG&A has material we don't profile. similar stores. places. we we Jeff, to aftersales upside their in across They're I least believe certainly done to have of kind different in the They at look upside there obviously But relative aftersales little there. Daniel different have. between U.K. this there's The Inchcape performance our point, a they on a guess, believe total, board in size is it at looked performance, X we add. do aftersales When difference, see, what more in at we've X, We something months bit analysis to the in.

Jeff, in the stores to than the our luxury-based thing the from slightly U.K. Inchcape would only we that be is stores I add tend more have

volumes revenues They don't necessarily operations. the that the Unit et seen high. be as higher. just aren't the have we So could our Fords, as within slightly KIAs cetera, have

So difference that's I call there. only would out the that

shifting And curious, versus even now, of do -- Toyota, that about give wait GPUs settle you percentage you away? have then the begin Hyundai what the what guess follow-up one to if on, I this just ongoing go is, could somewhere never stop could consumer many perspective how to more Honda, all to have sales. curious any to how just want happen, I'm I'm all they when terms a to seems get go that you gear and Then think else? kind sales. U.S. have where noise what's right on stop when -- you reaction like of these Lexus, in the

Your words were, is last is Jeff. right? X This never away, I Daryl, key, think, the go

or that stop sales Our comes they with an sale it order is on stop in experience to tend until the car shoppers, have stick off. customers new

-- me, customers. It's the to sticky customer. noise switch they're we car well, they'll to as as predict the a because, hard when sometimes Used all business noise a we're -- there's obviously, away goes cost different retain than customers, and I lean but new car opportunity pleased always model, And sometimes we that not healthy, have the like feels is we've today mix think and structure, with still what To we had, about. and is pretty luxury have it? really heavier which ever it an

say give there's though still some and about a I'm I in would there, optimistic. just have pretty out structure headwind Even our fairly model but number our our and to macro issues so, general. don't you, And I I'm business optimistic

question Ward Our from Capital. Freedom Michael next from comes

been will secret what of process. complete or think by I the said pretty early quick it start a you like to Daryl, the Did that be Inchcape integration? seems year-end. that have you integration integration

Well, the by it year, of will be finished Mike. end the substantially

it's should business the be integration -- the And by next We a the most done. year. there's want then into will but will that year. have to year, a add some will as to that organizational be of -- next more expect that happen be we some this may substantially of done. most IT may be There here as core it's will carry And But And into BMS will that the that that. parts integration Daniel, end -- year little the the color integration you spill some of bit. to not

X, certainly, some DMS [Indiscernible] we'll of I required is by year. be of the end year, I of It be But by be complete completed lion's going of hope the by the end the that's is integration Yes, done. to job because end think realignment the could share quarter operational the year. into the the still running early next

team something centrally. let -- used all dealerships cars me price little They used a spill their all all a centrally. that Mike, give Inchcape year example have of into that their an me their and used Let next cars price you pricing they of could bit. car

the we the on what them to like their market. X, and able be our and guidelines stores, with to model at used that's cars, Inchcape But to price want to give technology where we're is model we and to stores Group stores. Our price transitioning that's our our understand

to is, them the never And the have have used technology stores in car to do how people that before. you to the teach because they've had you do the to Now thing to price that. a teach

So January, don't into majority the of of February. the that. but But of spill there by learning spill the are there's that it's the a bit the could there impact We year. big, something end get on like things that curve. that a be ramp that to effort. not We believe some into can we But integration could expect

the by the end done of be should year. it So,

Well, that's talk you your adjacencies. a if it, it wonder impressive. about could on to as strategy bit touched relates I little -- you

some on areas, stayed those You where of do FinCos, you've stand? of the What you from use. some away other from thoughts stayed your stand-alone and away strategies are

the do all we year. Mike, of where model And adjacencies. at, And this do. tied never it exercise at see, the we that? growth for that an that given some point, them haven't be never the should with potentially really considering we compromise to see annual it look And in, the environment, and we're want something capital To evaluate would OEM an opportunities something could allocate business. some closely that it capital allocation would look do our be we the would relationship us I point risk ever. honestly, environment, know. we done we need adjacency We develop future, to we don't kind we at we that that. Will to time, interest to rate the we when core an in our I

it's in you too a because with bad so for the current well OEMs grow important to the perform your or can't us your if bad relationship have performance with And OEMs is you stores.

So their get you cannot approval grow. to

those ago And fits as part to keep we fact.. don't of for Today, just basis. there. so it Board say still we're was continue And our regular for very that a So It's an cautious I'd will to a did close -- in of discussion very opportunity just with few never. certainly. us. acquisitions. it open our Today, off. We see review we a U.S. It the never there, on careful a mind months matter we never things, we active see

question Our comes Research from Chin Seaport Glenn next Partners. from

congratulations transaction closed. getting the first, Inchcape So, on

questions it. around more Some

aftersales, same rest as or certain and like Anything proportion in a they total, revenue F&I of versus company. the guys service areas about anything that then technicians. bit that you prevents company? respects, the But Within in the a prevents with inherent more doing talked fact about expense, you different in you aftersales seem business those hiring more the floorplan from bringing each thing So line of of so? from

around don't not would in that prevent that, I there's us not They're are markets. are stores -- Glenn. feel them London. anything of different most from inherent doing The

generally cost they're facilitized They luxury So little bit market a for in lower heavier and mix, a they're us. little well. are

we there's aftersales and -- So feel certainly opportunity. like

at Inchcape look Just than philosophically, aftersales think differently we I tended to did.

those concerned implement implement being There's in that nothing things. to trying so And about structurally able we're to Inchcape. anything we're

agree up in with different pick than slightly Inchcape the historically on just manage their We has managed floorplan is floorplan. way floorplan floorplan I'll our their different. you, I point. Glenn, a

probably it's -- and the will turn as we that of inventory clearly to We floorplan take to few over. part a acquisition, acquired us months going their

a moment However, lower we Inchcape negotiations for realign have line that are in new Group at slightly similar we are will than the operating. of rest we at floorplan it for banking a partners be will a with currently our to floorplan our and as rate the

with conference gentlemen, we'll today's final our well and presentation. call. for ladies as you being question, session today's question-and-answer as today's up We that wrap thank And joining do

You may your lines. now disconnect