REG - Motorpoint Group plc - Full Year Trading Update

MotorpointAnnouncement

06/04/2023 07:00

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RNS Number : 5343V  Motorpoint Group plc  06 April 2023

6 April 2023

Motorpoint Group PLC

("Motorpoint" "Company" or the "Group")

 

Full Year Trading Update

 

 

Motorpoint Group PLC, the UK's leading independent omnichannel vehicle
retailer, provides an update on its trading performance for the year ended 31
March 2023.

 

FY23 Highlights:

 

·    Record revenue of c.£1,437m, up c.9% helped by vehicle mix and price
inflation

·    Profit before taxation expected to be broadly break even

·    Market share (0-4 year vehicles) for the 12 months to December 2022
grew strongly to 3.5% (December 2021: 2.7%)

·    Balance sheet remains strong with c.£5m cash at year end, and
significant borrowing headroom

·    New Chief Technology Officer, Tom Tang joined in March to accelerate
our digital transformation

·    New store to open in Ipswich in May 2023

·    Net Promoter Score remained at an industry leading 84

 

Strategy Update

 

As reported in January, the Group continued to make strong progress on its
targeted strategic investments in FY23 in order to meet the medium-term growth
objectives - 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.

 

Tom Tang joined Motorpoint as Chief Technology Officer in March. Tom has over
20 years of experience in technology leadership and has led technology
organisations with his recent roles as CIO, Alliant Energy, CTO - Customer
Experience, Sainsbury's and CIO, Argos.   Tom is an advocate of the benefits
of AI capabilities which benefit the customer and employee, advancing the
goals of the business.

 

Our new store in Ipswich will open in May 2023, our 20(th) store, up from 13
locations three years ago.

 

Mark Carpenter, Chief Executive Officer of Motorpoint Group PLC commented:

 

"Whilst the impact of higher interest rates and inflation will continue into
FY24, new car registrations rose 18% in March, with the fleet market driving
this eighth consecutive month of growth, which will in turn benefit used
vehicle supply. This, coupled with continued market share gains and progress
on our key initiatives, will enable Motorpoint to emerge from the current
environment a highly profitable market leader."

 

Enquiries:

 

 Motorpoint Group PLC                      via FTI Consulting

 Mark Carpenter, Chief Executive Officer

 Chris Morgan, Chief Financial Officer

 FTI Consulting (Financial PR)             020 3727 1000

 Alex Beagley

 Sam Macpherson

 

Inside information:   This announcement contains inside information as
defined in Article 7 of the retained EU law version of the Market Abuse
Regulation No 596/2014 ("UK MAR") and has been announced in accordance with
the Company's obligations under Article 17 of UK MAR.

Forward looking statements:   The information in this release is based on
management information. This announcement includes statements that are forward
looking in nature. Forward looking statements involve known and unknown risks,
assumptions, uncertainties and other factors which may cause the actual
results, performance or achievements of the Group to be materially different
from any future results, performance or achievements expressed or implied by
such forward looking statements. Except as required by the Listing Rules and
applicable law, the Company undertakes no obligation to update, revise or
change any forward looking statements to reflect events or developments
occurring after the date of this announcement.

 

Notes to editors

Motorpoint is the UK's leading independent E-commerce led omnichannel vehicle
retailer, focused on giving retail and trade customers the easiest, most
affordable and seamless way of buying, selling and financing their car whether
online, in-store or a combination of both. Through its leading B2C platform
Motorpoint.co.uk and UK network of 19 sales and collection branches, the Group
provides an unrivalled offering in the nearly new car market, where consumers
can effortlessly browse, buy or finance their next car and collect or have it
delivered directly to their homes. Motorpoint's purely online wholesale
platform Auction4Cars.com sells vehicles into the wholesale B2B market that
have been part exchanged by retail customers, or purchased directly from them
by the Group as part of its online car buying service. Motorpoint's
diversified business model, underpinned by its established brand, industry
leading technology and sophisticated marketing infrastructure, always delivers
the best choice, value, service and quality for customers. The Group is proud
to have been recognised for nine consecutive years as one of the Top 100 Best
Companies to Work For.

 

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