Bumpy road ahead for car dealership group despite accelerating sales
Car dealership group Motorpoint has accelerated progress towards its goal of becoming a £2bn-turnover retailer, bouncing back from a pandemic-hit 2021.
But it has warned it is “increasingly difficult to predict” how the cost-of-living crisis will affect consumer behaviour.
Rising inflation, and worldwide vehicle supply chain challenges, “is very likely to reduce overall sales and transactions in our markets”.
However the Derby-based group remains positive it remains on track to achieve its medium-term ambitions.
It generated revenues of £1.32bn in the year to March 2022 – up £600m on 2021 and £300m higher than 2020.
Its pre-tax profits of £21.5m is its best result since 2019.
Motorpoint chief executive Mark Carpenter said: “I am extremely pleased with the progress we have made on our medium term strategic objectives and am convinced Motorpoint will be a winner in these rapidly evolving markets.
“We are building a market leader with a disciplined operating culture, and we are confident in the plan we laid out a year ago.”
Its growth plan is targeting online revenue of more than £1bn a year, with an omnichannel e-commerce offer including its auction channel Auction4Cars.com.