Motorpoint Group, the vehicle retailer, is remaining confident that it will “emerge from the current depressed consumer market a more efficient business,” as it reveals a new trading update for the nine months ended 31 December 2022.
Revenue was up 17% in the period to £1.06bn, though gross profit per unit sat below expectations due to higher financing costs and the falling value of electric vehicles.
The Derby-based company believes this will continue to impact sales and profitability for the foreseeable future, but expects to remain profitable for the full year.
Meanwhile the firm says it has “continued to make strong progress on its targeted strategic investments in FY23 in order to meet the medium-term growth objectives outlined in June 2021 – over £1 billion in e-commerce sales and over £2 billion in total sales – and to better position the company for the long-term with a lower cost base, a stronger brand, and improved customer experiences.”
In its latest financial year so far, Motorpoint has invested an incremental c.£5m compared to the equivalent FY22 period to grow market share, investing in its growing digital and technology capability, and roll out of more stores in new catchment areas.
Mark Carpenter, Chief Executive Officer of Motorpoint, said: “Motorpoint will emerge from the current depressed consumer market a more efficient business, having made progress on multiple key strategic initiatives. Over the long term we will make further investments in technology, digital development and national marketing, which will be offset to a degree by efficiencies across the business.
“In a period when some of the group’s competitors are retreating or lacking financial capability and when current macro headwinds are forecast to continue, the Board believes that there is significant opportunity to continue making targeted strategic investment to grow market share and become a highly profitable market leader.”
