Motorpoint delivers stable performance as it steers back to profitability
Vehicle retailer Motorpoint Group has continued to deliver stable results after a tough period earlier this year.
The Derby-based company has marked a return to profitability, attributed to strong growth in retail volumes and improved operational efficiencies.
In its unaudited interim results for the six months ended 30 September 2024, gross profit increased to £44.7m, up £7m from £37.7m in H1 FY24, put down to better stock management and a more data-driven pricing strategy.
Despite this, the company recorded a revenue of £563.1m, a decline of £44.1m compared to £607.2m in the same period last year.
The decrease was attributed to a shift towards a more affordable vehicle mix and price deflation, particularly in the latter half of FY24.
The company recorded a profit before taxation of £2.0m, a turnaround from the £3.7m loss seen in H1 FY24.
Profit for the period stood at £1.5m, compared to a loss of £2.8m in the same period last year.
On the operational front, Motorpoint achieved a 17.4% growth in retail vehicle sales, with 30.3k retail vehicles sold, up from 25.8k in H1 FY24.
Mark Carpenter, chief executive officer of Motorpoint Group PLC said: “I am pleased with our solid performance in the first half of FY25, which was marked by a return to profitability following several years of considerable headwinds that have impacted our industry. Brilliant Basics, our right sizing and margin improvement programme, delivered what it needed to in FY24, ensuring foundations for future growth. As well as strong year-on-year volume growth and market outperformance, margins strengthened, and stock turn improved to an industry-leading 41 days in stock.”
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.
Carpenter continued: “Following the challenges faced in recent times, we remain cautious as supply slowly improves and macroeconomic pressures continue to ease while demonstrating our return to profitability as we plan courses of action to accelerate this growth. In response to higher demand for Motorpoint cars, we have bolstered our team and have the firepower to restart investment in our estate, including the opening of new stores. I am very excited by our plans to unlock further profitable growth, and we are in a strong position to continue increasing our share of the used car market.”
