Thursday, July 9, 2020

Motorpoint delivers “a resilient trading performance” in “a challenging environment”

Motorpoint, the Derby-headquartered vehicle retailer, “has delivered a resilient trading performance,” according to unaudited interim results for the six months ended 30 September 2019.

Revenue at the company increased 1.0% to £533.9m, up from £528.6m in the same period of 2018. Profit before tax meanwhile was down 18.3% to £9.4m from £11.5m.

The company also noted that its 10-acre preparation centre in Peterborough is complete and fully operational and its new 5 acre Swansea site is on track for opening in FY20 Q4. The firm said that it is also in advanced discussions on several further sites.

The news comes as the company’s founder and non-executive director, David Shelton announces his retirement from the board. Shelton stepped down as an executive director in March 2018.

Mark Carpenter, Chief Executive Officer of Motorpoint Group PLC, said: “Against a challenging environment, the Group has delivered a resilient trading performance, underpinned by revenue growth and robust cash generation. Group profit was impacted by increased overheads, which were approximately £2m higher than the comparable period last year. Half of this increase will be non-recurring following process changes implemented in the period.

“The first half of the year has seen significant growth in our market share despite ongoing market disruption, with the political situation leading to another period of lacklustre consumer confidence. Specifically, within the used car market, the early summer months was also a period of unusually high pressure on margins.

“We have seen significant success in improving our processes around the preparation of our vehicles, including through the recruitment of a new COO and the opening of our dedicated 10-acre Preparation Facility in Peterborough. This has already driven down our stock days further, releasing working capital back into cashflow. Our investment in our proprietary IT systems also continued with the recent appointment of a CTO to drive further progress.

“Opening plans for our next site, in Swansea, are well progressed and we anticipate launching this new 5-acre site in our financial Q4. We are in advanced discussions on several further sites and expect to be able to provide an update in the coming months.

“Current trading is consistent with achieving management’s full year expectations, albeit with a greater weighting towards H2, however potential outcomes from the Government’s Brexit negotiations could influence our future performance in unpredictable ways.

“We believe our unrivalled choice of nearly new vehicles and ongoing dedication to Choice, Value and Service positions us strongly to take advantage of any market disruption, as has been evidenced in the period by our growing market share.”

On David Shelton’s retirement Mark Morris, Chairman of Motorpoint Group PLC, said: “I would like to take this opportunity, on behalf of the Board and the whole group, to thank David for his tireless service to Motorpoint since founding it in 1998. David has been key to Motorpoint’s successful growth strategy from its first site in Derby to the 12-strong estate that we operate from today. The Board wishes David a long and happy retirement.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

The Nottingham enters alliance with Belvoir Group and announces branch closures

The Nottingham has revealed a raft of changes as it enters into a strategic alliance with Belvoir Group PLC. The alliance will see the closure...

Chancellor’s Economic Statement provides food for thought or more thought of food?

James Pinchbeck, Marketing Partner at Streets Chartered Accountants, breaks down the Chancellor’s economic statement and what it means for businesses. The headline grabbing announcement...

Leicester waste management company lands CBILS support

Leicester independent waste management company Bakers Waste Services has secured funding from HSBC UK through the Coronavirus Business Interruption Loan Scheme (CBILS) to support...

East Midlands records highest logistics property take-up in Q2

The East Midlands industrial and logistics property sector recorded one of the highest levels of take-up in the UK during the second quarter of...

PwC invests in Midlands team with five partner promotions

PwC, the professional services firm, is investing in its senior team in the Midlands with the admission of five new partners. Partner admissions are; Helen...

Related news

Frogspark become creative partners with local charity

Derby-based web design and marketing agency Frogspark has signed a deal with YMCA Derbyshire as their creative partner. The nationwide charity supports more than 220,000 children...

The Nottingham enters alliance with Belvoir Group and announces branch closures

The Nottingham has revealed a raft of changes as it enters into a strategic alliance with Belvoir Group PLC. The alliance will see the closure...

Chancellor’s Economic Statement provides food for thought or more thought of food?

James Pinchbeck, Marketing Partner at Streets Chartered Accountants, breaks down the Chancellor’s economic statement and what it means for businesses. The headline grabbing announcement...

Leicester waste management company lands CBILS support

Leicester independent waste management company Bakers Waste Services has secured funding from HSBC UK through the Coronavirus Business Interruption Loan Scheme (CBILS) to support...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close