Q3 Trading Update
27/01/2023 07:00
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RNS Number : 0294O Motorpoint Group plc 27 January 2023
27 January 2023
Motorpoint Group PLC
("Motorpoint" "Company" or the "Group")
Q3 Trading Update
Motorpoint Group PLC, the UK's leading independent omnichannel vehicle
retailer, provides an update on its trading performance for the nine months
ended 31 December 2022 (YTD).
Q3 FY23 Highlights:
· Revenue of £1,064m, up 17% helped by vehicle mix and price
inflation
· Return to year-on-year retail volume growth in December and into
January
· Gross profit per unit below expectations due to higher financing
costs and falling value of electric vehicles
· Two further store openings (at Ipswich and Milton Keynes) are planned
in first half of FY24
· Net Promoter Score remained at an industry leading 84
Strategy Update
Notwithstanding the difficult current environment, the Group 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. YTD, we have invested an
incremental c.£5m compared to the equivalent FY22 period to grow market
share, investing in our growing digital and technology capability, and our
roll out of more stores in new catchment areas. Including the two new planned
stores noted above, seven in total will have opened since the strategy was
announced in June 2021 and more are in the pipeline as we continue to grow
share by investing in new market areas.
Profitability
Macroeconomic conditions continue to promote consumer uncertainty, thereby
reducing used car demand. Although the Company does not provide specific
profit guidance, recent reductions in finance commissions and lower gross
margin, largely due to the well documented fall in electric vehicle values
will negatively impact profitability and the Board believes these macro
factors will continue to impact sales and profitability for the foreseeable
future. As stated in our Interim Results, the Group will continue to invest in
its strategy prudently and expects to remain profitable for the full year.
Mark Carpenter, Chief Executive Officer of Motorpoint Group PLC commented:
"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.
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 eight consecutive years as one of the Top 100 Best
Companies to Work For.
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