Boss bullish despite profits going into reverse at Motorpoint

Motorpoint, the Derby-based car retailer, has issued a profit warning this morning (January 27), advising investors that gross surplus is likely to be “below expectations” for its full-year.

The company said that, despite turnover rising by 17% to over £1.06bn for the nine months to the end of 2023, profit per unit has dropped because of higher financing costs and the falling value of electric vehicles.

Motorpoint said that this situation would continue “for the foreseeable future”.

The picture was not all gloomy; the group says it has continued to make progress on its targeted strategic investments in FY23 in order to meet the medium-term growth objectives outlined in June 2021 – over £1bn in e-commerce sales and over £2bn in total sale.

Mark Carpenter, chief executive officer of Motorpoint Group, said: “Motorpoint will emerge from the current depressed consumer market a more efficient business, having made progress on multiple key strategic initiatives. Over the long term we will make further investments in technology, digital development and national marketing, which will be offset to a degree by efficiencies across the business.

“In a period when some of the group’s competitors are retreating or lacking financial capability and when current macro headwinds are forecast to continue, the Board believes that there is significant opportunity to continue making targeted strategic investment to grow market share and become a highly profitable market leader.”