Motorpoint hits £1bn in softening market
11 June 2019
Motorpoint, one of the UK’s largest used car supermarkets, has reported a 6.8% growth in revenue to £1.06 billion and a 10% boost in profit before tax and exceptionals to £22.9 million in its full year results for the year to 31 March 2019.
However, the 12-site group has reported a softening in the used car market in the second half of the year thanks to strong availability of cars in the nearly-new to three-year-old market in which it specialises.
Motorpoint reported that consumer confidence metrics have remained subdued for the year, despite the economy enjoying very modest unemployment and inflationary pressures. It also said margins had softened due to “the breadth of stock available on the market” and that in the second half of its financial year, “margin performance fell below normal seasonal trends due to more aggressive pricing in a consumer market disrupted by the ongoing political and economic uncertainty”.
Commenting on the results Mark Carpenter, Motorpoint CEO, said: “We are pleased with the progress that has been made over the course of the year, with the Group delivering double-digit profit growth and achieving sales of over £1bn for the first time. We have continued to gain market share, thanks to our value-orientated, customer-friendly proposition which has resulted in a record number of repeat customers coming through our doors along with consistently high levels of customer satisfaction being reported.
“Our 13th retail site is expected to open in the second half of the current financial year and we are committed to bringing the Motorpoint brand closer to more people across the UK.
“The Group closed the year with a healthy cash position, thanks in part to our tight cost control and disciplined capital allocation. This has enabled us to deliver enhanced returns for our shareholders in the form of an increased dividend and continued buyback programme.
“In spite of what remains a challenging market backdrop, as has been well documented, we are well positioned at the beginning of the new financial year with a healthy and competitive stock mix.”