Double profit warning at East Midlands listed companies as economic conditions weigh heavy
Two East Midlands listed companies have issued grim warnings about the near-term future over uncertainty in the domestic and global economy.
Derby car retail giant Motorpoint has seen profits falls for its first half, despite posting record revenues of around £785m, up 30% on last year. The firm’s surplus dropped from £13.5m last year to just £3m this time around as investment costs and interest rates took their toll.
Motorpoint said that as macroeconomic conditions, which are causing consumer uncertainty, will likely reduce used car sales “for the foreseeable future” and has warned that this will “challenge financial performance” for its full-year 2023. The company said to what extent, it is hard to predict.
A statement added: “As has been previously highlighted, the impact of rising inflation, interest rates, consumer uncertainty and worldwide vehicle supply chain challenges are significantly affecting the used car market. Whilst it is prudent to remain cautious given these short term headwinds, the Group will continue to invest now for the longer term in a weakening competitor landscape, whilst also delivering appropriate levels of profitability and cash generation.”
Meanwhile, Loughborough-based X-ray screening systems manufacturer Image Scan has confirmed that revenues and profits for the year ending September 30 will be below market expectations.
The firm said this is due to the slippage of contracts into its next financial year and government contract delays.
Image Scan’s chief executive, Vince Deery, said: “Despite the challenges of the uncertain economic outlook, contract delays, supply side challenges and exchange rate concerns we retain our optimistic outlook for the future and an improved 2023. We continue to invest in new products and product developments to maintain and grow our market share.”