Car retailer’s profits hit as it plans for future
Profits have fallen at Debry-based car retailer Motorpoint after the firm invested heavily in an effort to maintain its market position and the delivery of “strategic objectives”.
Motorpoints surplus for the six month to September 30 came in at £3m – against £13.5m this time last year.
Revenues, however, soared – up by almost a third to £786.7m, as the company worked towards its aim of becoming a £2m a year turnover firm.
Motorpoint has warned investors that profits will continue to be hit as it invests in its new programme.
Mark Carpenter, chief executive officer of Motorpoint, said: “I am pleased with the progress the group has made during the period, delivering record first half revenues, whilst executing on our investment strategy for growth despite increasingly difficult macroeconomic conditions. Providing our customers with the best omnichannel car purchasing experience is integral to what we do, and we believe this can be achieved through investment in both physical branches and technology. The ongoing success of our investment during the period is reflected in our increased market share of the 0-4 year old market and improved efficiencies across the business.
“We believe that Motorpoint is the best operator in the UK’s used car market. It has proven its ability to grow profitably over its 25 year history and right now there is a significant opportunity for the business to grow its market share whilst remaining profitable. As a result, in line with previous guidance, profitability levels will be lower as we continue to invest in our strategic agenda. The investments made now will enable Motorpoint to emerge from the current macro environment in a stronger position as we seek to deliver sustained shareholder value.”