REG - Motorpoint Group plc - FINAL RESULTS
12/06/2025 07:00
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RNS Number : 4877M Motorpoint Group plc 12 June 2025
12 June 2025
Motorpoint Group PLC
("Motorpoint" or the "Group")
Final Results
Strong market outperformance, return to profitability and reinstating
dividend.
Group well positioned to accelerate strategic growth plans
Motorpoint Group PLC, the UK's leading independent omnichannel vehicle retailer, today announces its results for the year ended 31 March 2025 ("FY25").
FY25 Financial Summary
Financial KPIs Year ended 31 March 2025 Year ended 31 March 2024 Change
Revenue £1,173.1m £1,086.6m +£86.5m
Gross profit £90.8m £73.1m +£17.7m
Operating expenditure £(78.1)m £(80.6)m +£2.5m
Other income £0.8m £6.9m -£6.1m
Finance expense £(9.4)m £(9.8)m +£0.4m
Profit / (loss) before taxation £4.1m £(10.4)m +£14.5m
Basic earnings per share 3.7p (9.3)p n/m
Proposed dividend for the year 1.0p nil +1.0p
Cash and cash equivalents £6.6m £9.2m -£2.6m
· Return to profitability driven by strong growth in retail volumes
of 13.9% with 59.9k retail vehicles sold (FY24: 52.6k)
· Gross profit improvement aided by greater use of data led
analytics and improved stock management
· Interest rates remained high and continued to impact finance
penetration rates
· Underlying operating expenditure (excluding exceptional items)
increased from £72.9m to £78.1m, largely reflecting inflation and cautious
headcount increase to satisfy demand. Significant variable cost savings,
including energy and banking card fee reductions
· No exceptional items in FY25. Exceptional items in FY24 are
explained in note 5
· Cash movement influenced by share purchases, investment in the
estate and significant stock purchasing in March 2025
· Proposed reintroduction of 1.0p final dividend to complement
share buyback. Progressive dividend policy anticipated going forward, subject
to capital allocation priorities
· Bank facilities of £20m undrawn at year end, and extended for a
further year to June 2027
Operational and Strategic Highlights
Operational KPIs Year ended 31 March 2025 Year ended 31 March 2024 Change
Market share (0-6 year old) 2.37% 2.11% +26 bps
Vehicles sold 87.7k 78.0k +12.4%
Retail 59.9k 52.6k +13.9%
Wholesale 27.8k 25.4k +9.4%
Days in stock 43 45 +2 days
Gross profit margin 7.7% 6.7% +100 bps
Retail gross profit per unit £1,335 £1,222 +£113
Wholesale gross profit per unit £388 £346 +£42
Net promoter score (NPS) 80 82 -2
Customer acquisition cost ((1)) £177 £190 +£13
(1) Total marketing cost (including team) per retail unit
sold
· Used car prices broadly stable as macroeconomic headwinds began
to moderate
· Based on SMMT data, our share of the 0-6 year old market
increased by 12.3% on previous year reaching 2.46% in final quarter (Q4FY24:
2.27%)
· Increased retail and wholesale margin supported by data-led
buying and pricing, including focus on aged vehicles
· Days in stock reduced to an industry leading 43 days, a further
improvement on previous year
· Technology investment continued to focus on website improvements,
enhancing the customer experience and product information, leading to
increases in website sessions and digitally led sales (both up 16%)
· Focus on digital brand awareness and CRM to support customers'
omnichannel journey reduced customer acquisition cost
· Strong focus on customer service, evidenced by second half
improvement in NPS which reached 84 in final quarter of FY25, an increase from
the first half of the year of 77
· Continued good progress against ESG objectives, with Scope 1 and
2 emissions (and business travel) down 4.9% (same space basis) and total waste
down 15.6%
· Named by the Sunday Times as one of the Top 115 best big places
to work in 2025
· Recommenced larger new store openings; our 21st store opened in
Norwich in December 2024 and is already contributing to operating profit
(before central recharges)
· Significant £4.7m investment to relaunch and extend the original
Motorpoint store in Derby
· Further share buyback programme of 3m shares which commenced post
year end, following quickly on the back of the 3.6m share buyback completed in
FY25
Current Trading and Outlook
· Positive momentum has continued into FY26:
· Delivered retail volume growth across April and May (against
tougher prior year comparatives), and profitability increased on previous year
· Vehicle pricing remains generally stable
· Metal margins further strengthening, aided by data insight
· Growing supply from our Sell Your Car (SYC) channel
· Ancillary product performance positive, supported by new products
· NPS running at all time high
· Expect ongoing macroeconomic pressures to generally ease, with
further, moderate reductions in interest rates; although mindful consumer
confidence in near term remains uncertain
· Supply of nearly new used vehicles should continue to slowly
increase
· Continue to prudently manage cost base despite labour inflation
headwinds
Mark Carpenter, Chief Executive Officer of Motorpoint Group PLC commented:
"I am extremely pleased with our performance in FY25. Motorpoint has
experienced several years of considerable economic headwinds that have
hampered our industry. We responded in FY24 with our Brilliant Basics
programme which rightsized the business and improved margin performance. This
successfully laid the foundations for growth and in FY25 resulted in double
digit year on year volume growth, significant gains in market share, faster
stock turn, and a welcome return to profitability. I am also delighted that
our customer NPS improved through the year, reaching record levels in the
final quarter, and that we have been recognised as one of the Sunday Times'
best big places to work.
Recent falls in interest rates are welcome, although they remain relatively
high, and supply continues to slowly improve, with more bulk deals available
of newer stock. We remain cautious while conditions for the consumer remain
uncertain but are well placed to continue to grow profitably and outperform
the market. This will allow us to continue to invest in our strategic
objectives, and accelerate activity over time as conditions allow, in addition
to returning excess capital to shareholders."
Analyst & Investor Webinar
A webinar for sell-side analysts and investors will be held today at 09:00
BST, the details of which can be obtained through FTI Consulting via
motorpoint@fticonsulting.com.
Investor Meet Company Presentation
Separately, Chris Morgan, CFO, will host a live presentation and Q&A via
Investor Meet Company at 12:30 BST on the 23 June 2025. The presentation is
open to all existing and potential shareholders. Questions can be submitted
pre-event via the Investor Meet Company dashboard up until 09:00 BST the day
before the meeting or at any time during the live presentation.
To sign up to the presentation via Investor Meet Company please register using
the following link:
https://www.investormeetcompany.com/motorpoint-group-plc/register-investor
(https://www.investormeetcompany.com/motorpoint-group-plc/register-investor)
Enquiries:
Motorpoint Group PLC
via FTI Consulting
Mark Carpenter, Chief Executive Officer
Chris Morgan, Chief Financial Officer
FTI Consulting (Financial PR)
Alex
Beagley
020 3727 1000
Harriet Jackson
Amy Goldup
Forward looking statements: The information in this release is based on
management information. This report 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 report.
Notes to editors
Motorpoint is the UK's leading independent 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 21 sales and collection stores, 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 and quality for customers.
Chair's statement
Persevering through a difficult market
The used car industry has faced difficult market conditions for several years.
High interest rates, periods of car price volatility, depressed consumer
demand and constrained vehicle supply combined to cause upheaval in the
industry and reduce our sales and profits. After a particularly challenging
FY23, and facing similar conditions in FY24, Motorpoint quickly implemented a
rightsizing and margin improvement programme with the aim to limit losses and
preserve cash. This restructuring, which continues to be in place today,
proved critical to limiting losses during FY24 and positioning the Company to
benefit from market improvement in FY25 and beyond.
FY25 saw moderate improvement in macroeconomic headwinds - slight reductions
in interest rates, periods of improved consumer sentiment, more stable used
car pricing and some loosening of supply. I am pleased that Motorpoint was
able to benefit from these moderate market improvements and, indeed,
outperform the market. We grew retail sales and market share strongly,
increased our margins and reduced days in stock. This, coupled with our more
efficient cost base, ensured a return to meaningful levels of profitability
and cash generation for the year.
As much as we would like to believe that the challenges are behind us, this
would be premature. The supply of used vehicles, particularly those meeting
our nearly new criteria, remains subdued. Interest rates remain high, and
the effect of global disruptions in trade on the UK used car industry are
unclear. Nevertheless, we are cautiously optimistic that economic trends are
favourable, confident that Motorpoint is well positioned to benefit from an
improved used car market, and looking increasingly to the future by modestly
increasing our investment in our strategic capabilities.
Strategic opportunity
More than three years ago Motorpoint announced a departure from its historic
approach by more aggressively embracing the role of technology and digital
services in its business and setting forth more ambitious goals. We have since
expressed our long term strategy to become the UK's largest used car dealer by
providing market leading digital services, and by redefining the omnichannel
business model by developing integrated consumer journeys across our digital,
store, customer service and delivery channels that will meet changing consumer
needs. We believe this to be our central strategic opportunity. Underpinning
Motorpoint's new capabilities will be contemporary technology and data
practices which will not only enable unique omnichannel customer journeys but
will improve efficiency in our key processes such as selling, vehicle
preparation, logistics, pricing and inventory turnover.
Beginning soon after embarking on this ambitious strategic agenda, and
continuing through to today, significant economic challenges have continued to
negatively impact the used car market and Motorpoint in particular. Although
the Company remained committed to its strategic direction and to our belief in
the size of our opportunity, Motorpoint's capacity to invest in its strategic
plans has naturally been constrained. We have made modest but targeted
strategic progress while balancing our ambitions with responsible financial
management.
With a positive FY25 behind us, and cautious optimism for further improvement
in FY26 and beyond, we will again consider targeted investments toward our
long term strategic plans. We look forward to continuing improvements to our
website, returning to our programme of adding stores, developing selective key
technology infrastructure, building data tools in pricing, transport and
allocation, scaling our Sell Your Car direct purchase proposition, and testing
market opportunities for aftersales service. As market conditions continue to
improve, and Motorpoint's profits and cash generation grow proportionately,
our confidence in a more aggressive pace of strategic investments will grow as
well. We remain convinced of our long term strategic opportunity and look
forward to pursuing it with as much vigour as conditions allow.
Capital allocation
Motorpoint has consistently demonstrated its ability to generate cash, even in
tougher economic times. Last year, while making selective strategic
investments in data, technology and marketing, we successfully completed the
repurchase and cancellation of 3.6 million shares. We have recently commenced
a further buyback programme to repurchase and cancel another 3 million shares,
and have plans to reintroduce a dividend. Our priority remains to invest cash
responsibly in pursuit of our ambitious strategic agenda. However, we believe
the buybacks and dividend are an appropriate use of excess cash and an
enhancement to shareholder value.
Throughout the year, we regularly engage with our shareholders to ensure there
is a clear understanding of how the Group's business is managed to generate
sustainable returns and long term success. To that effect, following dialogue
with Saray Capital, our largest shareholder, we will be inviting Mr Majed
Hashim, Chair and CEO of Saray Capital, to participate as a board
advisor. We anticipate this role may include periodic meetings with
management and the Chair of the Board of Directors, and his attendance at
select future standalone strategy sessions with our Board and management
team. We look forward to benefiting from his insights and experience at
these meetings.
I would like to thank the Motorpoint team for their agility and resilience
over the past few years which has positioned the business well, and for their
positive performance in FY25. I am delighted that their hard work has been
rewarded with a return to profitability and market outperformance.
John Walden
Chair
Motorpoint Plc
12 June 2025
Chief Executive's statement
Overview
Having returned to profitability in the first half of FY25, I am very pleased
with our performance across the full year, delivering profitable growth and
significantly outperforming the wider used car market.
During the year, we recommenced our new store expansion programme with the
Group's 21st store opening in Norwich in December 2024. Notwithstanding the
ongoing consumer and macroeconomic environment, Motorpoint is in a strong
position to grow further, and I am cautiously optimistic for the FY26 outlook.
I was also pleased to announce another share buyback programme, post year end
on 3 April 2025, following the successful completion of last year's £5
million buyback. In addition, the Board has proposed the recommencement of a
progressive dividend policy, with a full year dividend of 1.0p per share. This
reflects both our ability to generate strong cash flow while achieving
sustainable growth, and our focus on delivering attractive returns to
shareholders.
Return to profitable growth
We launched Brilliant Basics in FY24 to focus on driving operational
excellence, which resulted in a lean cost base, faster stock turn and lower
prices, with the cumulative effect of improving profitability. The benefits
started to materialise in the final quarter of FY24 and have continued
throughout FY25. Retail units grew strongly, up 13.9% on FY24, despite
lapping tougher comparatives in the final quarter which slowed the rate of
growth. We also outperformed our peers, with market share growth of 12.3%.
Our response to the macroeconomic challenges we faced in FY23 and FY24 has
demonstrated our resilience by focusing on relentless plan execution to do
what is right for our customers. We continue to remain focused on ensuring we
stock the best value, affordable used cars, as well as reinforcing our "Double
the Difference" lowest price guarantee. We expanded our use of data to better
inform buying and dynamic pricing decisions, which supported strong metal
margin performance. This agile approach helped us minimise any overage stock
and, where necessary, clearance was supported by marketing investment. Days in
stock reduced further to an industry leading 43 days (FY24: 45 days). Strong
metal margin and ancillary product performance helped offset lower finance
commissions which continue to be impacted by high interest rates.
As previously reported, we significantly reduced our headcount in FY24, when
we rightsized the business. Whilst the FTE headcount at year end increased to
779 (FY24: 710), as we cautiously responded to increased customer demand, this
remains significantly below the high of almost 950 in early FY23.
Strategy update - focus on accelerated growth plans
Despite the market challenges during FY24, we remained committed to our long
term growth aspirations, whilst focusing in the short term on margin
improvement, cost base management and cash generation, as well as furthering
the strategic objectives that offer the best near term returns. Our strong
cash position allowed us to continue making targeted strategic investments,
with further improvements in technology involving both our retail and
wholesale businesses.
As our confidence grew through the year, it enabled us to accelerate
investment, further enhancing our digital capabilities and upscaling our
E-commerce offering and recommencing our new store opening programme. Norwich
opened in December 2024 and is trading successfully. As well as having the
capability to prepare its own cars (and thus being less reliant on
transportation from other sites), it benefits from having a larger pitch
capacity. Norwich is our 21st store, and we envisage that future openings will
be at similar sized, larger locations. In addition, we have significantly
invested in our original store at Derby, which includes expanding the site,
therefore increasing the number of vehicles on display for customers alongside
a brand new, better positioned showroom.
We continued to enhance our digital capabilities in FY25, which translated
into increased website traffic and resultant leads. Enhancements continue to
be made to our website, and we believe that it is now one of the best in the
market. Sales from digital leads increased by 16% and we are becoming
increasingly more efficient in how the marketing budget is spent. Customer
acquisition cost per retail unit fell from £190 to £177 over this same
period. Website sessions increased 16% to 15.9m.
Data is becoming ever more fundamental to how we operate; from what prices we
set daily, to what streams of marketing work best in a rapidly changing
marketplace. As such, we continue to bolster our data and digital teams, and
where necessary, attain input from third party experts. We are now able to
provide our buying teams with real time data to allow them to have further
confidence when acquiring vehicles, and also to inform selling price
decisions. We are also expanding our Sell Your Car proposition (SYC; our car
buying service direct from consumers), buying 3,572 cars in the year, and
c.300k vehicles were valued for SYC and part exchange.
Increased customer demand, coupled with the successful execution of our
Brilliant Basics programme, has resulted in a return to profitability in FY25,
and provides the Board with increasing confidence to establish organic plans
to accelerate growth.
The Board has reviewed future plans, and whilst investing in organic growth
remains the priority, it has concluded that cash generation can also support
returning significant levels of cash back to shareholders by way of buybacks
and dividends.
The Group's strategic growth priorities in FY26 and beyond are:
Expansion of supply channels
Sell Your Car expansion
Increase number and scale of sourcing channels
New store openings
Norwich blueprint for larger stores
Target areas of country with little market presence
Data and AI to further inform buying and pricing
Buying decisions based on internal and external data
Dynamic pricing, led by data
Site allocation to aid faster stock turn
Broaden brand reach
Invest in new and existing channels to reach consumer
Website destination for research and buying
Further technology development to enhance the customer journey
Best in class website; continue to invest, to optimise functionality
Webchat/ Chatbox enhancement; maximise AI opportunity
Complete omnichannel approach to CRM with full personalisation
Expand paid media opportunity
Develop aftersales customer offer
MOTs in house
Service plans/ product sales trials
Motorpoint is extremely well positioned to accelerate growth and make
significant market share gains while capitalising on the above priorities to
improve the customer offering and increase efficiency.
The Motorpoint Virtuous Circle remains at the core of everything we do
Our operating model of how our employees and stakeholders interact, the
Motorpoint Virtuous Circle, combined with our values of Proud, Happy, Honest
and Supportive, continue to provide a robust framework for explaining how we
do business.
The Virtuous Circle begins with our employees. We are extremely pleased to be
named by the Sunday Times as one of the Top 115 best big places to work in
2025.
We measured team satisfaction in H2 FY25 with a nationwide survey. Our
response rate was an excellent 90%, and we achieved an overall engagement
score of 83%, ahead of the industry benchmark. Our goals in FY25 were to
increase communication through regular one to ones, All Hands meetings and
relaunching Learning and Development courses, all of which have been very
successful. As is the norm here at Motorpoint for many years, nobody works on
their birthday and our "One Big Dream" initiative (two hours off) can be used
monthly for the team's fulfilment. As the pace of business expansion
increases, and we open more stores, recruiting high calibre team members will
be especially important, and we will remain focused on not only hiring the
strongest talent, but also on training and culture enhancement.
We believe that the engagement of our team is directly correlated to our
customers' satisfaction. As we innovate our omnichannel customer experiences,
our highly engaged team continues to deliver what we believe is a market
leading proposition of Choice, Value, and Quality to our loyal customers with
an unerring focus on customer satisfaction. Our NPS for sold vehicles did dip
slightly in the first half to 77, levels last seen in FY19 and FY20. However,
following strong focus across the whole business, our NPS score improved to
above 80 in the second half, and finished FY25 at record levels (Q4 FY25: 84).
The final piece of our Virtuous Circle is delivering for our shareholders. We
are delighted that we have successfully returned to profitability. Cash
generation has been strong which enabled us to successfully execute the share
buyback, commence another, and restart our progressive dividend programme,
whilst not having to compromise on strategic investment.
Environmental, Social and Governance (ESG)
The ESG Committee has continued to lead on setting and refining our
environmental, social, and governance objectives. Our ambition remains to be
the UK's most environmentally responsible used car retailer. Over the
reporting period, we have made tangible progress against our ESG targets.
We have achieved further reductions in energy consumption, with Scope 1 and 2
emissions and business travel in total down 4.9% compared to the previous
period, on a same space basis. During the year, we cut total waste by more
than 140 tonnes (15.6%) despite increased business activity, underscoring our
commitment to operational sustainability. Through close collaboration with
supply chain partners, we are embedding responsible environmental practices
across operations. A particular highlight is our initiative to repurpose end
of life tyres for use in community playground infrastructure. Following
increased public interest in March 2025 which reported industry malpractices
relating to the disposal of tyres, we reaffirm that all our tyre recycling is
conducted domestically in accordance with stringent UK standards.
Social responsibility continues to be a key area of focus. We conducted our
external employee engagement and wellbeing survey in partnership with WorkL,
which achieved a 90% response rate across the business. The overall Happiness
Score was 83%, a rating that is independently classified as excellent. This,
along with the Sunday Times' recognition of Motorpoint being one of the best
big places to work in 2025, provides evidence that we continue to make
excellent progress.
Outlook
Positive momentum has continued into FY26:
· Delivered retail volume growth across April and May (against
tougher prior year comparatives), and profitability increased on previous year
· Vehicle pricing remains generally stable
· Metal margins further strengthening, aided by data insight
· Growing supply from our Sell Your Car (SYC) channel
· Ancillary product performance positive, supported by new products
· NPS running at all time high
We expect ongoing macroeconomic pressures to generally ease, with further,
moderate reductions in interest rates and supply of nearly new used vehicles
should continue to slowly increase. However, we remain mindful consumer
confidence in the near term remains uncertain. We will continue to prudently
manage the cost base despite labour inflation headwinds.
Mark Carpenter
Chief Executive Officer
12 June 2025
FINANCIAL REVIEW
Group financial performance headlines
We experienced strong retail volume growth of 13.9% with 59.9k vehicles sold
(FY24: 52.6k) and significantly outperformed the used car market. Growth was
supported by some easing of economic headwinds. Revenue increased to
£1,173.1m (FY24: £1,086.6m).
Gross profit was £90.8m (FY24: £73.1m). Gross margin improved in the year to
7.7% (FY24: 6.7%). Increased metal margin (the difference between selling and
buying price of a vehicle), through use of data and improved stock management,
and ancillary product performance, offset the impact of lower finance
commissions. Finance attachment rates influenced by higher cost of finance.
Operating expenses (before the exceptional items which were incurred in FY24)
increased by 7.1% to £78.1m (FY24: £72.9m), largely reflecting a rise in
headcount to keep up with demand driven by the growth in retail sales and
general inflation, along with the part year costs of an additional store.
There were no exceptional items in FY25 (FY24: Net exceptional items before
taxation £(2.2)m).
Profit before taxation improved to £4.1m (FY24: Loss before taxation
£(10.4)m). Finance costs reduced moderately to £9.4m from £9.8m in FY24.
Cash remained in a good position, supported by a return to profitability, and
despite the completed share buyback programme, which resulted in a total cash
cost of £4.7m in the year, and the purchase of shares to satisfy Employee
Benefit Trust (EBT) obligations of £3.8m. Significant cash was also incurred
on the expansion of our Derby site, including the purchase of the freehold and
surrounding land (£4.7m). Cash at 31 March 2025 was £6.6m (31 March 2024:
£9.2m), and this reduction was further influenced by high levels of vehicle
purchasing towards the end of the month to satisfy demand (there is a short
delay while stock finance is secured against the purchase).
The financial statements as at 1 April 2023 and at 31 March 2024 have been
restated to reflect the impact of a misstatement in the previous years'
financial statements. Specifically, the restatement corrects an understatement
of right of use assets and lease liabilities for the periods mentioned. As a
result, both right of use assets and lease liabilities have increased by
£2.3m as at 1 April 2023 and both have increased by £0.3m as at 31 March
2024. This resulted from the receipt of back dated rent review invoices. There
is no restatement required to the statement of comprehensive income.
Retail customers Wholesale customers Total
FY25 FY24 FY25 FY24 FY25 FY24
£m £m £m £m £m £m
Revenue 1,028.4 931.1 144.7 155.5 1,173.1 1,086.6
Gross profit 80.0 64.3 10.8 8.8 90.8 73.1
Trading performance
The Group has two key revenue streams, being (i) vehicles sold to retail
customers via the Group's stores, call centre and digital channels, and (ii)
vehicles sold to wholesale customers via the Group's Auction4Cars.com website.
Retail
Revenue from retail customers was up 10.5% to £1,028.4m (FY24: £931.1m),
with 59.9k (FY24: 52.6k) vehicles sold (an increase of 13.9%). The strong
growth moderated in the final quarter when we started to lap tougher prior
year comparatives. Consumer demand improved in FY25, and we benefited from
keener pricing and a more affordable stock mix, along with continued digital
enhancements to improve the customer experience.
Gross margin of 7.8% was a significant improvement on the previous year (FY24:
6.9%). This reflected our focus on data led pricing, stock management and a
better ancillary product performance, in part offset by lower finance
commission. We would expect finance attachment rates to improve as and when
interest rates reduce. Ancillary performance was helped by the introduction of
a new warranty product, and post year end we also introduced alloy wheel and
paint protection offers.
Retail gross profit per unit increased to £1,335 (FY24: £1,222), reflecting
the above. Preparation and transport costs increased slightly due to vehicle
age and quality standard targets, and the increased number of vehicle moves to
avoid stock ageing issues.
Our 21st store opened in December 2024 in Norwich and is trading well. This
store marks the recommencement of our new store opening programme, and a
return to larger pitch capacity sites. Our original store at Derby was also
significantly enhanced during the year at a cost of £4.7m.
Wholesale
Wholesale revenue via Auction4Cars.com, which sells vehicles that have been
part exchanged by retail customers, or directly purchased from consumers,
decreased by 6.9%. However, unit sales of 27.8k were up 9.4% (FY24: 25.4k).
The growth disparity to overall revenue reflects changes to retail age and
mileage criteria, since higher end product was sold through the retail
platform. Overall profitability increased significantly, with profit per unit
of £388 (FY24: £346), as focus remained on understanding reasons for loss
making vehicles at every location.
Operating expenses before exceptional items in FY24
In the previous year, notable savings had been achieved in people costs
following FY24's rightsizing programme and efficiencies resulting from
technology investment. This cost scrutiny remained in FY25.
Operating expenses before exceptional items increased from £72.9m in FY24 to
£78.1m. Full time equivalent employees increased to 779 at year end from 710
at 1 April 2024, as we cautiously recruited additional team members to satisfy
increased demand. Therefore, basic salary costs, as well as bonus and
commission payments accounted for much of the increase. Our costs incurred at
site level fell following the cost focus in the year, despite inflationary
pressures, with notable decreases in energy and bank card charges, resulting
from a reduction in card payments. Property costs increased which reflected
the new store and a rise in insurance costs. Marketing costs were at similar
levels to last year (£10.6m versus £10.0m in FY24), but the customer
acquisition cost per retail unit dropped to £177 (FY24: £190) as we continue
to embrace technology to assess spend returns.
Other Income before exceptional items in FY24
Other income of £0.8m largely related to final business interruption
insurance receipts following the Derby flood last year (FY24: £1.3m).
Exceptional items
There were no exceptional items in FY25.
Net exceptional items before taxation of £(2.2)m in FY24 constituted
restructuring costs for various redundancies associated with the headcount
rightsizing programme (£1.1m), the write down of delivery vehicles which were
being disposed of following the driver redundancies associated with the above
(£0.2m), and cost relating to the disposal of the Milton Keynes lease
(£0.5m), along with the net of assets written off following the Derby flood
not covered by insurance.
On a gross basis in FY24, exceptional operating expenses were £7.7m which
included the flood damaged assets written off and the restructuring costs.
Exceptional other income of £5.6m included insurance receipts against those
written off assets.
Interest
The Group's finance expense was £9.4m (FY24: £9.8m); reflecting prevailing
interest rates.
Total interest charges on the stocking facilities in the period were £6.9m
(FY24: £7.1m). Interest on lease liabilities was £2.1m (FY24: £2.0m) and on
banking facilities £0.4m (FY24: £0.7m).
Taxation
The tax charge (FY24: credit) in the period is for the amount assessable for
UK corporation tax in the year net of prior year adjustments and deferred tax
credits. The return to profitability resulted in a tax charge of £0.9m (FY24:
£2.0m credit, reflecting the loss in FY24).
Earnings per share
Basic earnings per share were 3.7p and diluted earnings per share were 3.6p
(FY24: both loss per share (9.3)p).
Dividends
No dividend was paid in the period (FY24: £Nil). The Board has recommended a
final dividend of 1 penny per share, with an associated cash cost of £0.9m
(FY24: £Nil). Subject to approval at the AGM, this will be paid on 1 August
2025, to those shareholders on the register at close of business on 4 July
2025 (the record date).
Capital expenditure and disposals
Cash capital expenditure increased to £7.6m (FY24: £2.6m). This increase
reflected a return to strategic investment in the year. Notable spends
included the new store at Norwich, the expansion of the Derby site, including
the freehold purchase, MOT testing ramps in preparation centres and various
tech projects. The only notable disposal was the sale of several home delivery
trucks.
Balance sheet
Net assets at year end fell from £31.1m to £26.9m. The return to
profitability was offset by the impact of the cancellation of own shares and
purchase of shares to satisfy EBT requirements. Working capital was
proactively managed, ensuring that stock purchasing was fully maximised
through the funding facilities.
The Group successfully completed the £5.0m purchase and cancellation of 3.6m
shares during the year (which commenced in March 2024) and post year end the
Board announced a further programme to purchase and cancel another 3.0m
shares. In addition, 2.8m shares were bought in the year at a cash cost of
£3.8m to satisfy future share scheme (EBT) requirements up until January
2028.
At the year end issued share capital comprised 86,619,822 ordinary shares
(FY24: 89,969,630).
Non-current assets were £70.7m (31 March 2024 restated: £67.0m) made up of
£15.4m of property, plant and equipment, £51.0m of right of use assets,
intangible assets of £3.0m and a deferred tax asset of £1.3m (31 March 2024:
£8.8m, £53.1m (restated), £3.7m and £1.4m respectively). The Group
currently owns two freehold plots; land in Glasgow and the trading Derby site.
All other properties are on leases of various lengths.
The Group closed the period with £151.4m of inventory, up from £102.4m at 31
March 2024. Days in stock for the year reduced to 43 days (FY24: 45 days). The
inventory increase reflects a concerted effort to purchase more vehicles to
satisfy demand.
As at 31 March 2025, the Group had £165.0m (31 March 2024: £150.0m) of
stocking finance facilities available of which £122.4m (31 March 2024:
£74.5m) was drawn. The Group had available stocking facilities with Black
Horse Limited of £90.0m, and £75.0m with Lombard North Central Plc. During
the year it was agreed with Black Horse Limited to increase the amount
available to £90.0m, to reflect the increased inventory holdings.
The Group also has a £20.0m (FY24: £20.0m) facility with Santander UK Plc,
split between £6.0m available as an uncommitted overdraft and £14.0m
available as a revolving credit facility. At 31 March 2025 £Nil (31 March
2024: £Nil) was drawn on the facility, with cash and cash equivalents of
£6.6m (31 March 2024: £9.2m). Post year end it was agreed with Santander UK
Plc to extend the length to the arrangement by a further year until June 2027.
Trade and other receivables have reduced to £13.4m (31 March 2024: £19.2m),
due to the favourable timing of receipts.
Trade and other payables, inclusive of the stock financing facilities, have
increased during the year to £155.2m (31 March 2024: £107.1m) mainly
reflecting the increased stocking facility utilisation.
Total lease liabilities of £57.4m (31 March 2024 restated: £59.6m) reflect
the repayments made during the period, additions in Norwich and Chingford and
the removal of the Derby lease following the purchase of the main site.
Cash flow
Cash reduced by £2.6m, and this fall was influenced by heavy stock buying in
March as we built up for the busy Easter period, and the impact of the share
buyback programme and purchase of shares for future share scheme requirements,
along with increased capital expenditure to satisfy strategic requirements.
Cash flow generated from operations was £29.0m inflow (FY24: £19.3m inflow)
and therefore remains strong.
Capital Allocation
The Group's objective when managing working capital is to ensure adequate
working capital for all operating activities and liquidity, including
comfortable headroom to take advantage of opportunities, or to weather short
term downturns. The Group also aims to operate an efficient capital structure
to achieve its business plan.
Our Capital Allocation Policy is aligned to strategy, whilst rewarding
shareholders by maximising return through a disciplined deployment of cash
generated.
Organic Growth and Margin Expansion
· Grow retail volumes ahead of used car market, and margins, by
investing in new stores, data, brand, technology and new income streams
Treatment of Excess Capital
· The Board is committed to maintaining an efficient balance sheet;
its expectation is that excess cash, over and above investment opportunities
to support growth, will be returned to shareholders, in the form of share
buybacks or dividends
Acquisitions
· Consider only if earnings per share accretive, attractive risk
profile and clear industry logic
In April 2025, the Company embarked on a second share buyback programme, with
the aim of purchasing and cancelling 3.0m shares. This follows the recent
successful buyback programme which resulted in the purchase and cancellation
of 3.6m shares which completed in September 2024. In addition, the Board also
proposed the payment of a final dividend of 1p per share at a cash cost of
£0.9m.
Finance commission
Following the FCA Motor Market Review in March 2019, the Financial Conduct
Authority ("FCA") issued a policy statement in July 2020 prohibiting the use
of discretionary commission models from 28 January 2021, which the Group
adhered to. The Group continues to believe that its historical practices were
compliant with the law and regulations in place at that time.
On 11 January 2024, the FCA announced a section 166 review of historical motor
finance commission arrangements and sales and planned at that time to
communicate a decision on next steps in the second half of 2024, based on the
evidence collated in the review. The FCA indicated that such steps could
include establishing an industry wide consumer redress scheme and/or applying
to the Financial Markets Test Case Scheme, to help resolve any contested legal
issues of general importance.
Subsequently, on 25 October 2024, the Court of Appeal's judgment in Hopcraft v
Close Brothers Ltd, Johnson v Firstrand Bank Ltd, and Wrench v Firstrand Bank
Ltd stated that a broker could not lawfully receive a commission from a lender
without the customer's fully informed consent to the payment.
The FCA has extended the time period of its review into 2025. Since the ruling
on 25 October 2024, the Group altered its selling processes to comply with new
requirements from its lenders, which includes upfront full commission
disclosure.
The Supreme Court reviewed the judgements in April 2025 and its outcome is
awaited.
The Group is not directly involved in the selling of finance products to
consumers; instead refers consumers to third parties who administer and are
responsible for the finance product themselves. As a result, the Directors do
not consider that provisions are required to be made in respect of any
exposures in this area.
Chris Morgan
Chief Financial Officer
12 June 2025
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
Note 2025 2024 2024 2024
£m £m £m £m
Before exceptional items Exceptional items (1) Total
Revenue 3 1,173.1 1,086.6 - 1,086.6
Cost of sales 4 (1,082.3) (1,013.5) - (1,013.5)
Gross profit 90.8 73.1 - 73.1
Operating expenses 4 (78.1) (72.9) (7.7) (80.6)
Other income 0.8 1.3 5.6 6.9
Operating profit / (loss) 13.5 1.5 (2.1) (0.6)
Finance expense (9.4) (9.7) (0.1) (9.8)
Profit / (loss) before income tax 4.1 (8.2) (2.2) (10.4)
Income tax (expense) / income (0.9) 1.8 0.2 2.0
Profit / (loss) for the year 3.2 (6.4) (2.0) (8.4)
Other comprehensive income / (expense):
Items that will not be reclassified to profit or loss
Tax relating to items which will not be reclassified to profit or loss
0.1 (0.1) - (0.1)
Other comprehensive income / (expense) 0.1 (0.1) - (0.1)
Total comprehensive income / (expense) for the year attributable to equity 3.3 (6.5) (2.0) (8.5)
holders of the parent
Earnings per share attributable to equity holders of the parent (pence)
Basic 6 3.7p (9.3p)
Diluted 6 3.6p (9.3p)
1 Detail on exceptional items is provided in note 5
The Group's activities all derive from continuing operations.
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2025
Note 2025 Restated* Restated*
£m As at 31 March 2024 As at 1 April 2023
£m £m
ASSETS
Non-current assets
Property, plant and equipment 15.4 8.8 13.1
Right-of-use assets 51.0 53.1 60.7
Intangible assets 3.0 3.7 3.7
Deferred tax assets 1.3 1.4 -
Total non-current assets 70.7
67.0 77.5
Current assets
Inventories 151.4 102.4 148.6
Trade and other receivables 13.4 19.2 18.4
Current tax receivable - - 1.3
Cash and cash equivalents 6.6 9.2 5.6
Assets classified as held for sale - 2.6 -
Total current assets 171.4
133.4 173.9
TOTAL ASSETS 242.1
200.4 251.4
LIABILITIES
Current liabilities
Trade and other payables (155.2) (107.1) (143.8)
Borrowings 7 - - -
Lease liabilities (6.0) (6.6) (6.7)
Current tax liabilities (0.5) - -
Total current liabilities (161.7) (113.7) (150.5)
Net current assets 9.7 19.7 23.4
Non-current liabilities
Lease liabilities (51.4) (53.0) (59.2)
Provisions (2.1) (2.6) (2.6)
Deferred tax liabilities - - (0.2)
Total non-current liabilities (53.5) (55.6) (62.0)
TOTAL LIABILITIES (215.2) (169.3) (212.5)
NET ASSETS 26.9 31.1 38.9
EQUITY
Called up share capital 8 0.9 0.9 0.9
Capital redemption reserve 0.1 0.1 0.1
Capital reorganisation reserve (0.8) (0.8) (0.8)
EBT reserve (8.5) (5.1) (5.3)
Retained earnings 35.2 36.0 44.0
TOTAL EQUITY 26.9 31.1 38.9
*See note 9 for explanation of restatements as at 31 March 2024 and 1 April
2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
Called up share capital Capital Capital EBT reserve Retained Total equity
redemption reserve
reorganisation reserve
earnings
£m
£m
£m
£m £m £m
Balance at 1 April 2023 0.9 0.1 (0.8) (5.3) 44.0 38.9
Loss for the year - - - - (8.4) (8.4)
Other comprehensive expense for the year - - - - (0.1) (0.1)
Total comprehensive expense for the year - - - - (8.5) (8.5)
Transactions with owners in their capacity as owners:
Share‑based payments - - - - 1.0 1.0
Buyback and cancellation of shares - - - - (0.3) (0.3)
EBT share purchases and commitments - - - - - -
Share-based compensation options satisfied through the EBT - - - 0.2 (0.2) -
- - - 0.2 0.5 0.7
Balance at 31 March 2024 0.9 0.1 (0.8) (5.1) 36.0 31.1
Profit for the year - - - - 3.2 3.2
Other comprehensive income for the year - - - - 0.1 0.1
Total comprehensive income for the year - - - - 3.3 3.3
Transactions with owners in their capacity as owners:
Share‑based payments - - - - 1.0 1.0
Buyback and cancellation of shares - - - - (4.7) (4.7)
EBT share purchases and commitments - - - (3.8) - (3.8)
Share-based compensation options satisfied through the EBT - - - 0.4 (0.4) -
- - - (3.4) (4.1) (7.5)
Balance at 31 March 2025 0.9 0.1 (0.8) (8.5) 35.2 26.9
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
2025 2024
£m £m
Profit / (loss) for the year attributable to equity shareholders 3.2 (8.4)
Adjustments for:
Taxation charge / (credit) 0.9 (2.0)
Finance expense 9.4 9.8
Operating profit / (loss) 13.5 (0.6)
Share-based payments 1.0 1.0
Impairment of assets held for sale - 0.2
Loss made on assignment of lease - 0.2
Depreciation and amortisation charges 10.4 9.9
Profit on disposals of property, plant and equipment and right-of-use assets (0.4) -
Cash flow from operations before movement in working capital 24.5 10.7
(Increase) / decrease in inventory (49.0) 46.2
Decrease / (increase) in trade and other receivables 5.8 (0.8)
Increase / (decrease) in trade and other payables 47.7 (36.8)
Cash generated from operations 29.0 19.3
Interest paid on borrowings and financing facilities (7.3) (7.8)
Interest paid on lease liabilities (2.1) (2.0)
Income tax (paid) / received (0.2) 1.6
Net cash generated from operating activities 19.4 11.1
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets (7.6) (2.6)
Proceeds from disposal of property, plant and equipment and right-of-use 0.3 -
assets
Net cash used in investing activities (7.3) (2.6)
Cash flows from financing activities
Payments to acquire own shares for cancellation (4.7) (0.3)
Payments to acquire own shares for share schemes (3.8) -
Proceeds from exercise of share-based payments 0.2 -
Repayment of principal element of leases (6.4) (4.6)
Repayment of borrowings (33.0) (24.0)
Proceeds from borrowings 33.0 24.0
Net cash used in financing activities (14.7) (4.9)
Net (decrease) / increase in cash and cash equivalents (2.6) 3.6
Cash and cash equivalents at the beginning of the year 9.2 5.6
Cash and cash equivalents at end of year 6.6 9.2
Net cash and cash equivalents comprises: Cash at bank 6.6 9.2
1. General information
Motorpoint Group Plc (the 'Company') is incorporated and domiciled in the
United Kingdom under the Companies Act 2006.
The Company is a public company limited by shares and is listed on the London
Stock Exchange; the address of the registered office is Champion House,
Stephensons Way, Derby, England, United Kingdom, DE21 6LY. The consolidated
financial statements of the Group as at and for the year ended 31 March 2025
comprise the Company, all of its subsidiaries and the Motorpoint Group Plc
Employee Benefit Trust (the 'EBT'), together referred to as the 'Group'. These
financial statements are presented in pounds sterling because that is the
currency of the primary economic environment in which the Group operates. All
amounts have been rounded to the nearest one hundred thousand unless otherwise
indicated.
Basis of preparation
The annual financial information presented in this preliminary announcement
does not constitute the Company's statutory accounts for the years ended 31
March 2025 or 2024 but is based on, and consistent with, that in the audited
financial statements for the year ended 31 March 2025, and those financial
statements will be delivered to the Registrar of Companies following the
Company's Annual General Meeting. Statutory financial statements for the year
ended 31 March 2024 have been delivered to the Registrar of Companies, the
auditors reported on those financial statements; their report was unmodified
and did not contain a statement under either Section 498(2) or Section 498(3)
of the Companies Act 2006.
The preliminary financial report for the year ended 31 March 2025 follows the
same accounting policies as the 2024 Annual Report. This preliminary financial
report does not include all of the notes of the type normally included in an
annual financial report and should therefore be read in conjunction with the
Motorpoint Group PLC 2024 Annual Report.
Going concern
In accordance with the UK Corporate Governance Code 2024, the Board has
assessed the prospects of the Group over a period in excess of 12 months from
the date of signing the Group financial statements as required by the 'Going
Concern' provision, by selecting the period to the end of December 2026.
The Group has managed its net debt comfortably, with the revolving credit
facility (RCF) undrawn at the year end. Total headroom, including undrawn
stocking and banking facilities, and available cash, was £69.2m at the year
end. During the year the Company renegotiated the terms of one of its stocking
facilities, increasing its available headroom from £75.0m to £90.0m and thus
total headroom from £150.0m to £165.0m.
Scenarios:
In making their assessment the Directors considered the Group's current
balance sheet and operational cash flows, the availability of facilities, and
stress testing of the key trading assumptions within the Group's plan. A range
of scenarios have been assessed by the Directors, including various possible
downside scenarios against the base case. The Directors opted to model a
specific scenario designed to create the conditions required to breach
covenants within the going concern period as well as a plausible downturn on
the base case.
Scenario Outcome
Base case The Group is not in breach of any financial covenants and is able to operate
within the finance facility arrangements. The Group is able to meet all
Based upon the Group's most recent approved forecasts. forecast obligations as they fall due.
The base model assumes continued growth in unit volumes based on current run
rates of year on year unit volume growth uplifted to account for the opening
of new stores, and a prudent estimate based on growth in the used car market.
Severe but plausible downside The Group is not in breach of any financial covenants and is able to operate
within the finance facility arrangements. The Group is able to meet all
Top down stress testing was applied to the base case model, taking into forecast obligations as they fall due.
account a severe but plausible downside to business performance, relative to
possible economic pressure and stagnation in the growth of the used car
market.
This included volume and margin pressure, reducing volume by 24% and an
overall gross profit reduction compared to the base case of 33%.
Reverse stress test This scenario is designed to result in a covenant breach at the end of the
assessed viability period.
A scenario created to model the circumstances required to breach the Group's
banking covenants at the end of the viability period. Management believes that the combination of severe downsides to be remote, and
that there are numerous mitigating factors over and above those built into the
The Board considered the potential impacts in preparing the stress test. The reverse stress test modelling which the Board would consider to avoid a
below scenario was analysed: covenant breach.
Reducing unit volumes by 53% from the base case and decreasing gross profit
overall by 67% through additional margin pressure.
The selection of the assumptions or the sensitised case is inherently
subjective, and whilst the Board considered these assumptions to reflect a
downside scenario, the future impact of economic downturn, interest rate rises
or inflating overhead costs is impossible to predict with absolute accuracy.
Whilst the same applies to the reverse stress test, we note that this scenario
is specifically designed to demonstrate the point at which the covenants
breach during the going concern period. The reverse stress test reflects, in
the Board's opinion, a remote circumstance and numerous mitigating factors
could be implemented to avoid a covenant breach in this scenario.
Scenario modelling has been considered throughout the year and at year end by
management to formulate response options against moderate or severe downturns
in sales volumes, potential margin pressures and possible cost challenges.
The Group's available headroom stands at £14.0m (FY24: £14.0m) through its
revolving credit facility 'RCF' agreement. The Group also has an uncommitted
overdraft facility of £6.0m which remains in place and was undrawn at the
year end. Both are until June 2027 with the option to extend for a further one
year if both parties are agreed. With respect to the Group's stocking
facilities, these have increased from £150.0m to £165.0m during the year
which the Board deem appropriate given current market conditions. In the
eventuality of a period of prolonged economic downturn resulting in material
reductions in sales volume or prices, as well as rising overhead costs, it is
possible that the Group would need to negotiate changes to its current banking
covenants, but such an extreme downturn is not currently considered plausible.
The Group continues to consider and monitor further potential mitigation
actions it could take to strengthen its cash position and reduce operating
costs in the event of a more severe downside scenario. Such cost reduction and
cash preservation actions would include but are not limited to: reducing spend
on specific variable cost lines including marketing and store trading
expenses; team costs, most notably sales commissions; pausing new stock
commitments; and reviewing expansionary capital spend, dividend and share
buyback activity.
The Group has continued to demonstrate a flexible approach to trading, both in
times of economic uncertainty and where opportunities exist. The current
economic uncertainty may have downstream effects on the UK nearly new and used
car market, but these remain uncertain. The Group has considered both
restriction and ease of supply in its viability assessment as well as a range
of other macroeconomic factors.
The Directors have also made use of the post year end trading performance to
confirm that performance is in line with expectation. Whilst only a short
period has passed since the year end, this evidence suggests that this is
the case.
Based on this assessment, the Board confirms that it has a reasonable
expectation that the Group will be able to continue in operation and meet its
liabilities as they fall due over the period to 31 December 2026.
The Board has determined that the period to December 2026 constitutes an
appropriate period over which to provide its going concern assessment. This is
the period detailed in our base case model which we approve each year as part
of the strategic review. Whilst the Board has no reason to believe the Group
will not be viable over a longer period, given the inherent uncertainty
involved we believe this presents users of the Annual Report and Accounts with
a reasonable degree of confidence while still providing a medium term
perspective.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company, entities controlled by the Company (its subsidiaries) and the
Motorpoint Group Plc Employee Benefit Trust made up to 31 March each year.
The EBT is consolidated on the basis that the Company has control, thus the
assets and liabilities of the EBT are included in the balance sheet and shares
held by the EBT in the Company are presented as a deduction from equity. The
EBT has been solely set up for the purpose of issuing shares to Group
employees to satisfy awards under the various share-based schemes and has no
ability to access or use assets, or settle liabilities, of the Group.
Subsidiaries are all entities over which the Group has control. The Group
controls an entity when the Group is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect
those returns through its power over the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They
are deconsolidated from the date that control ceases. Intercompany
transactions and balances between Group companies are eliminated on
consolidation.
2. Segmental reporting
The Group has prepared segmental reporting in accordance with IFRS 8
'Operating Segments'. The Group's chief operating decision maker is considered
to be the Board of Directors. Segmental information is presented on the same
basis as the management reporting. An operating segment is a component of the
business where discrete financial information is available and the operating
results are regularly reviewed by the Group's chief operating decision maker
to make decisions about resources to be allocated to the segment and to assess
its performance.
Operating segments are aggregated into reporting segments to combine those
with similar characteristics.
The Group operates its omnichannel vehicle retailer offering through a store
network and separate financial information is prepared for these individual
store operations. These stores are considered separate 'cash generating units'
for impairment purposes. However, it is considered that the nature of the
operations and products is similar and they all have similar long term
economic characteristics and the Group has applied the aggregation criteria of
IFRS 8. In addition, the Group operates an independent trade car auction site
offering a business-to-business entirely online auction market place platform
which is assessed by the Board as a separate operation and thus there are two
reportable segments: retail (Motorpoint) and wholesale (Auction4Cars).
Retail Retail Wholesale Wholesale Total Total
2025 2024 2025 2024 2025 2024
£m £m £m £m £m £m
Revenue 1,028.4 931.1 144.7 155.5 1,173.1 1,086.6
Cost of sales (948.4) (866.8) (133.9) (146.7) (1,082.3) (1,013.5)
Gross profit 80.0 64.3 10.8 8.8 90.8 73.1
Cost of sales are specific and therefore directly attributable to each
segment. Operating and financial expenses are not segregated for internal
reporting purposes and hence have not been disclosed here.
3. Revenue recognition
Revenue represents amounts chargeable, net of value added tax, in respect of
the sale of goods and services to customers. Revenue is measured at the fair
value of the consideration receivable, when it can be reliably measured, and
the specified recognition criteria for the sales type has been met. The
transaction price is determined based on periodically reviewed prices and are
separately identified on the customer's invoice. There are no estimates of
variable consideration.
The transaction price for motor vehicles and motor related services is at fair
value as if each of those products are sold individually.
(i) Sales of motor vehicles
Revenue from the sale of retail motor vehicles is recognised when the control
has passed; that is, when the vehicle has been collected by, or delivered to,
the customer. Payment of the transaction price is due immediately when the
customer purchases the vehicle. Sales of accessories, such as mats, are
recognised in the same way.
Revenue from the sale of wholesale vehicles is recognised when the control has
passed; that is, when full payment has been made for the vehicle. The Group
also sells wholesale vehicles in bulk transactions to auction houses. When
this is the case revenue is recognised upon collection of the vehicles.
The Group operates a return policy which is consistent with the relevant
consumer protection regulations. This includes a 14 day money back guarantee
for home delivery customers. A returns provision is made against the estimated
value of the products likely to be returned.
(ii) Sales of motor related services and commissions
Motor related services sales include commissions on finance introductions,
extended guarantees and the sale of paint protection products. Sales of paint
protection products are recognised when the control has passed; that is, the
protection has been applied and the product is supplied to the customer.
The assessment is based on whether the Group controls the specific goods and
services before transferring them to the end customer, rather than whether it
has exposure to significant risks and rewards associated with the sale of
goods or services.
The Group receives commissions when it arranges finance, insurance packages,
extended warranty and paint protection for its customers, acting as agent on
behalf of a limited number of finance, insurance and other companies. For
finance and insurance packages, commission is earned and recognised as revenue
when the customer draws down the finance or commences the insurance policy
from the supplier which coincides with the delivery of the product or service.
Commissions receivable for all motor related services are paid typically in
the month after the finance is drawn down. For extended warranty and paint
protection, the commission earned by the Group as an agent is recognised as
revenue at the point of sale on behalf of the principal.
Vehicle extended guarantees and asset protection where the Group is
contractually responsible for future claims
Historically the Group sold vehicle extended guarantees and asset protection
('GAP insurance') where the Group is contractually responsible for future
claims, and are accounted for by deferring the guarantee income received along
with direct selling costs, and then releasing the income on a straight line
basis over the remaining life of the guarantee. Costs in relation to servicing
the extended guarantee income are expensed to the statement of comprehensive
income as incurred. The Group has not sold any of these policies in the
current or prior period but continues to release income in relation to legacy
sales.
Vehicle extended guarantees and asset protection where the Group is not
contractually responsible for future claims
Vehicle extended guarantees and asset protection ('GAP insurance') where the
Group is not contractually responsible for future claims, are accounted for by
recognising the commissions attributable to Motorpoint at the point of sale to
the customer. GAP insurance where the Group is not contractually responsible
for future claims is no longer sold with the last sale occurring in FY24.
Finance commission
Where the Group receives finance commission income, primarily arising when the
customer uses third party finance to purchase the vehicle, the Group
recognises such income on an 'as earned' basis.
2025 2024
£m £m
Revenue analysis
Revenue from sale of motor vehicles 1,119.2 1,037.5
Revenue from motor related services and commissions 50.8 45.9
Revenue recognised that was included in deferred income at the beginning of 0.1 0.2
the year - Sale of motor vehicles
Revenue recognised that was included in deferred income at the beginning of 3.0 3.0
the year - Motor related services and commissions
Total revenue 1,173.1 1,086.6
4. Operating profit / (loss)
Analysed as:
Operating profit / (loss) includes the effect of charging / (crediting): 2025 2024
£m £m
Inventory recognised as expense 1,077.0 1,007.8
Movement in provision against inventory 0.8 0.2
Employee benefit expense 39.4 33.1
Depreciation of property, plant and equipment and right-of-use assets 9.2 8.8
Amortisation of intangible assets 1.2 1.1
Expense on short term and low value leases 0.3 0.4
Profit on disposals of property, plant and equipment and right-of-use assets (0.4) -
Exceptional income - (5.6)
Exceptional costs - 7.7
Total expenses before exceptional items comprise: 2025 2024
£m £m
Cost of sales 1,082.3 1,013.5
Operating expenses:
Selling and distribution expenses 22.0 19.4
Administrative expenses 56.1 53.5
Total operating expenses before exceptional items 78.1 72.9
Total expenses before exceptional items 1,160.4 1,086.4
5. Exceptional items
2025 2024
£m £m
Restructuring costs - 1.7
Asset write off - 6.0
Insurance proceeds - (5.6)
Total exceptional items before finance expense and income tax - 2.1
No exceptional items in FY25. Exceptional items in FY24 detailed below.
Restructuring costs
A business efficiency review in FY24 resulted in restructuring costs of
£1.7m. This included a review and subsequent reduction in headcount, which
resulted in redundancy costs of £1.1m. As part of this, the home delivery
team was restructured and a related loss on disposal of home delivery trucks
and an impairment of the remainder, totalling £0.2m (included within assets
held for sale as at 31 March 2024) was incurred. Also, as part of this
restructure, a decision was made to not progress with the opening of a new
site. The cost of assignment of the lease, which included a one off payment to
the new lease holder, and overhead costs incurred from the date a decision was
made to dispose of the site, resulted in a loss on disposal of £0.4m. All
restructuring was completed in FY24.
Asset write off
As a result of the flood which occurred at the Derby store on 21 October 2023,
some fixed assets, and most of the inventory on site at the time was damaged
and subsequently written off. Fixed assets and inventory written off
totalled £5.4m with £0.6m relating to other costs incurred as a result of
the flood.
Insurance proceeds
Insurance proceeds relate to amounts received against insured written off
fixed assets and inventory following the flood at the Derby store.
Income tax income
The tax implications of the exceptional items in FY24 was a credit of £0.2m.
6. Earnings per share (EPS)
Basic and diluted EPS are calculated by dividing the earnings attributable to
equity shareholders by the weighted average number of ordinary shares during
the year.
2025 2024
Profit / (loss) attributable to ordinary shareholders (£m) 3.2 (8.4)
Weighted average number of ordinary shares in issue ('000) 87,447 90,180
Basic EPS (pence) 3.7 (9.3)
Diluted weighted average number of ordinary shares in issue ('000) 87,946 90,180
Diluted EPS (pence) 3.6 (9.3)
The difference between the basic and diluted weighted average number of shares
represents the dilutive effect of the currently operating schemes and the
vested but not yet exercised options. This is shown in the reconciliation
below. No dilution in FY24 due to the Group making a loss for the year.
There is a maximum of 2,239,636 additional options which have not been
included in the dilutive calculation in relation to the SAYE schemes.
2025 2024
Weighted average number of ordinary shares in issue ('000) 87,447 90,180
Adjustment for share options ('000) 499 -
Weighted average number of ordinary shares for diluted earnings per share 87,946 90,180
('000)
7. Borrowings
During the year the Company renegotiated the terms of one of its stocking
facilities, increasing available headroom from £150.0m to £165.0m. As at the
reporting date £Nil of the revolving credit facility (FY24: £Nil) and £Nil
of the overdraft (FY24: £Nil) was drawn down. The terms of the revolving
credit facility and overdraft require a full repayment for a period of at
least one day or more in each financial year and half year with no less than
one month between repayments.
The finance charge for utilising the revolving credit facility was dependent
on the Group's borrowing ratios as well as the base rate of interest in
effect. During the year ended 31 March 2025 interest was charged at 7.0%
(FY24: 6.0%) per annum. The interest charged for the year of £0.4m (FY24:
£0.7m) has been expensed as a finance cost.
8. Share capital
2024
2025
Number Amount Number Amount
'000 £m '000 £m
Allotted, called up and fully paid ordinary shares of 1p each
Balance at the beginning of the year 89,970 0.9 90,190 0.9
Bought back and held as treasury shares during the year - - (30) -
Released from treasury awaiting cancellation 30 - - -
Cancelled treasury shares (30) -
Bought back and cancelled during the year (3,350) - (190) -
Balance at the end of the year ((1)) 86,620 0.9 89,970 0.9
1 During the period 3,349,808 shares were purchased by the Company
in accordance with the terms of its share buyback programme, as announced on
26 January 2024. All of these shares were cancelled at 31 March 2025 as well
as the 30,254 shares held in treasury as at 31 March 2024. The shares were
acquired at an average price of 140.2p per share, with prices ranging from
132.0p to 144.5p.
In total the 3,570,063 shares bought back and cancelled represent 4.0% of the
issued ordinary shares, at a purchase cost of £5.0m (FY24: 190,001 shares at
a cost of £0.3m).
Shares are held on behalf of employees within the Employee Benefit Trust
(EBT).
The Group does not have a limited amount of authorised capital.
9. Prior Year Restatement
Right-of-use assets and lease liabilities
The financial statements as at 1 April 2023 and for the year ended 31 March
2024, have been restated to reflect the impact of a misstatement in the
previous years' financial statements. Specifically, the restatement corrects
an understatement of right-of-use assets and lease liabilities for the periods
mentioned. As a result, both right-of-use assets and lease liabilities have
increased by £2.3m in the year ended 31 March 2023 and have increased by
£0.3m in the year ended 31 March 2024.
The increase in right-of-use assets and lease liabilities relate to rent
reviews which took place in the period of restatement. The variance arose this
year with the receipt of back dated rent invoices in FY25 and late in FY24 in
relation to prior rent reviews. Whilst there is a misstatement in the
statement of financial position, the statement of comprehensive income and net
reserves was materially correct in both of the previous accounting periods,
and as such, no restatement is required to the statement of comprehensive
income.
The following tables summarise the impact on the Group's consolidated
financial statements:
Consolidated Statement of Financial Position (extract) As at 1 April 2023 (as previously reported) Total adjustments As at 1 April 2023 (restated)
£m £m £m
Right-of-use assets 58.4 2.3 60.7
Total assets 249.1 2.3 251.4
Lease liabilities (current) (3.4) (3.3) (6.7)
Lease liabilities (non-current) (60.2) 1.0 (59.2)
Total liabilities (210.2) (2.3) (212.5)
Net assets 38.9 - 38.9
Consolidated Statement of Financial Position (extract) As at 31 March 2024 (as previously reported) Total adjustments As at 31 March 2024 (restated)
£m £m £m
Right-of-use assets 50.5 2.6 53.1
Total assets 197.8 2.6 200.4
Lease liabilities (current) (4.0) (2.6) (6.6)
Lease liabilities (non-current) (53.0) - (53.0)
Total liabilities (166.7) (2.6) (169.3)
Net assets 31.1 - 31.1
Undiscounted cash flows Within 180 days Between 180 days and 1 year Between 1 and 2 years Between 2 and 5 years Over 5 years Total
2024 £m £m £m £m £m £m
Lease liabilities as at 31 March 2024 3.5 3.6 7.2 21.0 36.1 71.4
Total adjustments 0.2 0.2 0.2 0.8 1.2 2.6
Lease liabilities as at 1 April 2024 (restated) 3.7 3.8 7.4 21.8 37.3 74.0
Total undiscounted cash flows (restated) 105.4 3.8 7.4 21.8 37.3 175.7
10. Post balance sheet events
On 3 April 2025, the Group announced that a share buyback programme would
commence to repurchase up to 3 million ordinary shares of 1 penny each, with
an aggregate purchase price of no more than approximately £4.0m.
Arrangements relating to the unsecured loan facility provided by Santander UK
Plc (£20.0m split between £6.0m available as an uncommitted overdraft and
£14.0m available as a revolving credit facility) were extended in May 2025 to
June 2027 (previously June 2026), with the option to extend for a further one
year period if agreed by both parties.
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