Profits down at car giant as founder announces retirement
Profits at Motorpoint have taken a significant hit, with the news coming as the Derby-based car retailer’s founder David Shelton announces his retirement.
Although the listed firm’s revenue increased by one per cent to £533.9 million during the six months ended 30 September 2019, its pre-tax profits dipped by 18.3 per cent to £9.4 million.
In a statement to the London Stock Exchange, the company said that overheads to the tune of £2 million and market disruption caused by the political climate were to blame for its performance.
However, the firm has increased its market share despite these setbacks, and says half of the increase in its overheads will be “non-recurring.”
It is now gearing up to open a new site in Swansea and is in advanced discussions over several further sites.
Motorpoint CEO Mark Carpenter said: “The first half of the year has seen significant growth in our market share despite ongoing market disruption, with the political situation leading to another period of lacklustre consumer confidence. Specifically, within the used car market, the early summer months was also a period of unusually high pressure on margins.
“Current trading is consistent with achieving management’s full year expectations, albeit with a greater weighting towards H2, however potential outcomes from the government’s Brexit negotiations could influence our future performance in unpredictable ways.”
Non-executive director David Shelton, who founded the Group in 1998, is set to retire on 31 December. He stepped down as an executive director in March 2018.
Mark Morris, chairman of Motorpoint Group, said: “I would like to take this opportunity, on behalf of the Board and the whole group, to thank David for his tireless service to Motorpoint since founding it in 1998. David has been key to Motorpoint’s successful growth strategy from its first site in Derby to the 12-strong estate that we operate from today. The Board wishes David a long and happy retirement.”
