8
October 2024
Motorpoint Group
PLC
("Motorpoint" or the "Group")
Half Year Trading
Update
Year on year volume growth
of 17% and return to profitability in H1 FY25
Motorpoint Group PLC, the UK's
leading independent omnichannel vehicle retailer,
provides an
update on its trading performance for the six months ended 30
September 2024 ("H1 FY25").
Highlights
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Strong retail volume growth of 17%
in H1 FY25 compared with H1 FY24
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Returned to profitability in H1
FY25; Profit before taxation is expected to be c.£2.0m (H1 FY24:
£(3.7m) loss before taxation and exceptional items). No exceptional
items in H1 FY25
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Industry leading stock turn: days in
stock improved to 41 days (H1 FY24: 47 days)
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Successful completion of share
buyback programme and, despite buying back 3.6m shares at a cost of
£5.0m, net cash at 30 September was £11.2m, in line with
expectations
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Our 21st store is
expected to open in Norwich in H2 FY25
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Strong momentum going into H2
FY25
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Profitability
As macroeconomic headwinds eased in
H1 FY25, used car prices and margins remained broadly stable and
customer sentiment improved. The first reduction of interest rates
in August was encouraging and future cuts should further aid
profitability. The supply of used vehicles remains subdued,
particularly at the newer end of the market. However, the increased
customer demand, coupled with the successful execution of our
Brilliant Basics programme during FY24 to drive operational
excellence and right size the business, has resulted in a return to
profitability in FY25, and provides the Board with confidence to
establish plans to accelerate growth.
Share Buyback
The Board is pleased to announce
that the share buyback programme, which commenced on 11 March 2024,
has been successfully completed. Between 11 March 2024 and 6
September 2024, 3,570,063 ordinary shares in the Company were
repurchased on the London Stock Exchange for cancellation, at an
average price of 139.7 pence per share and a total cost, excluding
expenses, of £4.987m. This represented 4.0 per cent of the issued
share capital of the Company when the buyback programme
commenced. The completion of the buyback
programme allows for further investment to support organic,
profitable growth, given the significant opportunities
identified.
Mark Carpenter, Chief Executive Officer of
Motorpoint Group PLC commented:
"The resilience of the Motorpoint business model has been
proven once again and I am delighted to confirm that the successful
execution of our Brilliant Basics programme during FY24, alongside
the easing of macroeconomic pressures, has resulted in a return to
profitability. We also welcomed the first interest rate cut in
August, the same month that we achieved our highest performing
retail volume since March 2022.
This solid performance in the first half of the year stands us
in good stead as we look to progress our strategy to accelerate
growth, and I would like to thank our incredibly hardworking
colleagues for what they have delivered so far this year. I am
confident that we are entering the second half with strong
momentum."
The Group expects to announce its
Interim Results on 27 November 2024.
ENDS
Enquiries:
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Motorpoint Group PLC
Mark Carpenter, Chief Executive
Officer
Chris Morgan, Chief Financial
Officer
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via FTI Consulting
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FTI
Consulting (Financial PR)
Alex Beagley
Harriet Jackson
Amy Goldup
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020 3727 1000
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Forward looking statements: The information in this release is based on management
information. This report includes statements that are forward
looking in nature. Forward looking statements involve known and
unknown risks, assumptions, uncertainties and other factors which
may cause the actual results, performance or achievements of the
Group to be materially different from any future results,
performance or achievements expressed or implied by such forward
looking statements. Except as required by the Listing Rules and
applicable law, the Company undertakes no obligation to update,
revise or change any forward looking statements to reflect events
or developments occurring after the date of this report.
Notes to editors
Motorpoint is the UK's leading
independent omnichannel vehicle retailer, focused on giving retail
and trade customers the easiest, most affordable and seamless way
of buying, selling and financing their car whether online, in store
or a combination of both. Through its leading B2C platform
Motorpoint.co.uk and UK network of 20 sales and collection stores,
the Group provides an unrivalled offering in the nearly new car
market, where consumers can effortlessly browse, buy or finance
their next car and collect or have it delivered directly to their
homes. Motorpoint's purely online wholesale platform
Auction4Cars.com sells vehicles into the wholesale B2B market that
have been part exchanged by retail customers, or purchased directly
from them by the Group as part of its online car buying service.
Motorpoint's diversified business model, underpinned by its
established brand, industry leading technology and sophisticated
marketing infrastructure, always delivers the best choice, value,
service and quality for customers.
