Motorpoint blames Brexit vote for poor H1 performance

Motorpoint, the Derby-based car dealership giant, has seen a sharp fall in its profits for the half year to 30 September.

The firm, which saw operating profit fall from £10.3m in the first half of its financial year to £7m in the six months to the end of September, is blaming “uncertainty” around the EU Referendum vote for the poor performance.

Revenues at the firm for H1 increased by 11.5% to £408.9m.

Mark Carpenter, CEO of Motorpoint Group, said: “The uncertainty around the result of the EU referendum contributed to the Group’s disappointing performance in the first half; however we managed stock levels carefully thereby maintaining our industry leading stock turn despite the short term impact on margins. Whilst some uncertainty around Brexit remains, the three new sites that we have opened in the last 12 months are performing well and we anticipate they will deliver a solid performance in the second half.

“Despite the softening in consumer confidence, market conditions since the period end have remained stable with a good level of stock availability and margins have returned to normal levels.

“We continue to invest in opening new sites, and we have recently acquired a leasehold site in Sheffield which will open in Spring 2017. The Group’s differentiated proposition, strong employee and customer focus and industry leading scale leave us well positioned to deliver a full year performance in line with expectations.

“I feel that the company’s dedication to offering choice, value and service will ensure that Motorpoint remains the Car Buyers’ Champion.”