Motorpoint profit fall
19 April 2021
Motorpoint recorded £18.8m profit before tax in the year ended 31 March 2020, 14.9% down from a restated £22.1m in 2019. Revenue was broadly similar at £1bn. The company was affected by the first Covid lockdown coming three weeks prior to the year end: all site-based employees were furloughed during March 2020, along with the majority of head office staff.
Gross profit fell only 1.3% (to £78.9m), which the retailer says was helped by better vehicle preparation cost control and vehicle margins in the second half of 2020. Gross margins grew from 7.5% to 7.8%, due to faster car preparation and improved trade car sales margins.
The company has net assets of £66.5m. It agreed a £15m overdraft with Santander in May 2020, to provide short-term liquidity and aid a strong reopening strategy. Motorpoint to date has not needed to make use of this facility.
Motorpoint says it is the UK’s largest omnichannel retailer, expanding from 12 sites to 13 with the opening of Motorpoint Swansea in January 2020 (adding a 14th site, Stockton-on-Tees, in December 2020). The directors warn subsequent Covid-related closures will have a direct impact on 2021 full year prospects.
In the markets, the full-year results had no impact on the company’s share price.