Motorpoint Group, the independent omnichannel vehicle retailer, has achieved record first half revenue, while pre-tax profits have slipped.
According to an update on the firm’s trading performance for the six months ended 30 September 2022, first half revenue hit £785m, up 30% from £605m in the same period of the year prior. The strong growth was driven by branch rollout, an increase in premium models being sold and vehicle price inflation.
Meanwhile, profit before tax for the period is £3m, significantly lower than the £13.5m pre-tax profit reported last year. Motorpoint noted that this comes as a result of increased strategic investment, “coupled with the costs of maintaining market leading finance rates.”
In a statement to London Stock Exchange, Motorpoint said: “The impact of rising inflation, interest rates, consumer uncertainty and worldwide vehicle supply chain challenges are significantly affecting the used car market. Whilst it is prudent to remain cautious given these short term headwinds, the group will continue to invest now for the longer term in a weakening competitor landscape, whilst also delivering appropriate levels of profitability and cash generation.”
