Car retailer’s share price on the skids after sales warning
The share price at Derby-headquartered car retail group Motorpoint slumped dramatically yesterday (October 6) after the firm warned on slowing sales.
At close of trading, Motorpoint’s shares were changing hands at 148p – down over 17% on their opening price. The company’s share price has fallen by over 55% this year, as economic conditions have hit sales of second hand cars.
The news comes after 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.”