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.”