Car retailer returns to profitability after challenging start to the year
Vehicle retailer Motorpoint Group has bounced back after facing a tough period earlier this year.
The Derby-based company is now expecting a profit before tax of around £2m, a turnaround from a £3.7m loss last year.
For the six months ending September 30, 2024, Motorpoint reported a 17% rise in retail sales compared to the same period last year.
The firm has attributed the turnaround to the easing of economic pressure, which has stabilised used car prices and boosted customer confidence. An interest rate cut in August is also viewed as a promising indicator for future profits.
Mark Carpenter, chief executive officer of Motorpoint Group, said: “The resilience of the Motorpoint business model has been proven once again and I am delighted to confirm that the successful execution of our Brilliant Basics programme during FY24, alongside the easing of macroeconomic pressures, has resulted in a return to profitability. We also welcomed the first interest rate cut in August, the same month that we achieved our highest-performing retail volume since March 2022.
This solid performance in the first half of the year stands us in good stead as we look to progress our strategy to accelerate growth, and I would like to thank our incredibly hardworking colleagues for what they have delivered so far this year. I am confident that we are entering the second half with strong momentum.”
Back in June, revenues fell by 25% to £1.1bn, resulting in a £10m pre-tax loss after breakeven the previous year. This challenging period led to a profit warning issued in January, reflecting the challenges it faced.
