REG - Motorpoint Group plc - Half-year Report
27/11/2024 07:00
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RNS Number : 7636N Motorpoint Group plc 27 November 2024
27 November 2024
Motorpoint Group PLC
("Motorpoint" or the "Group")
Interim Results
Strong market outperformance with double digit year on year volume growth and
a return to profitability, leaving the Group well positioned to accelerate
strategic growth plans
Motorpoint Group PLC, the UK's leading independent omnichannel vehicle
retailer, today announces its unaudited interim results for the six months
ended 30 September 2024 ("H1 FY25").
H1 FY25 Financial Summary
Financial KPIs 6 months to 30 September 2024 6 months to 30 September 2023 Change 12 months to 31 March 2024
Revenue £563.1m £607.2m -£44.1m £1,086.6m
Gross profit £44.7m £37.7m +£7.0m £73.1m
Underlying((1)):
Operating expenditure £(38.6)m £(36.1)m -£2.5m £(72.9)m
Profit / (Loss) before taxation £2.0m £(3.7)m +£5.7m £(8.2)m
Profit / (Loss) for the period £1.5m £(2.8)m +£4.3m £(6.4)m
Reported:
Operating expenditure £(38.6)m £(37.1)m -£1.5m £(80.6)m
Finance expense £(4.1)m £(5.3)m +£1.2m £(9.8)m
Profit / (Loss) before taxation £2.0m £(4.7)m +£6.7m £(10.4)m
Profit / (Loss) for the period £1.5m £(3.5)m +£5.0m £(8.4)m
Net cash((2)) £11.2m £11.2m £Nil £9.2m
(1) Excluding any exceptional operating expenses, exceptional other
income, exceptional tax expense and exceptional tax income in H1 FY24 and
FY24. None in H1 FY25
(2) Cash less any borrowings, excluding lease liabilities
· Return to profitability driven by strong growth in retail volumes in
the period of 17.4% with 30.3k retail vehicles sold (H1 FY24: 25.8k). Growth
in Q2 FY25 further improved to 26.8%
· Revenue decrease reflects more affordable vehicle mix and price
deflation (notably in H2 FY24)
· Gross profit improvement aided by greater use of data-led pricing
and improved stock management
· Interest rates remained high and continued to impact finance
penetration rates
· Increased operating expenditure reflects rise in headcount to
support strong volume growth and wage inflation
· Cash position remains strong following the £5m spend on the
successful share buyback programme. Bank facility of £20m undrawn at period
end
· Whilst the finance commission temporary withdrawal caused short term
challenges, no material adverse impact on trading and FY25 profit expectations
Operational and Strategic Highlights
Operational KPIs 6 months to 30 September 2024 6 months to 30 September 2023 Change
Market share July - September (0-6 year old) 2.5% 2.0% +50 bps
Vehicles sold 43.3k 39.3k +10.2%
Retail 30.3k 25.8k +17.4%
Wholesale 13.0k 13.5k -3.7%
Days in stock 41 47 -6 days
Gross profit margin 7.9% 6.2% +170 bps
Retail gross profit per unit £1,317 £1,267 +£50
Wholesale gross profit per unit £369 £370 -£1
Customer acquisition cost ((1)) £147 £198 -£51
Orders from digital leads 13.7k 11.8k +16%
Website sessions 8.15m 6.55m +24%
(1) Total marketing cost per retail unit
sold
· Used car prices remained broadly stable as macroeconomic
headwinds eased in H1 FY25
· Supply of new vehicles remains subdued, particularly at newer end
of market
· Returned to market share outperformance. Market share based on
SMMT data (up to six year old cars) for the most recent quarter (July to
September 2024) was 2.5%, compared to 2.0% for the same quarter in FY24
· Increased retail margins supported by data-led pricing and stock
management, including focus on aged vehicles. Days in stock reduced to an
industry-leading 41 days, a 13% improvement year on year
· Technology investment continued to focus on improvements to our
website, enhancing the customer experience and product information, leading to
an estimated 16% increase in digitally led sales
· Website sessions increased 24% from 6.55m to 8.15m
· Flexible approach to targeted marketing, enabling us to reduce our
customer acquisition cost by 26%
· Continued strong progress against ESG objectives, with Scope 1 and
2 emissions down 11% on previous period
· Recommencement of new store opening programme; our 21(st) store
will open in Norwich in December 2024
· Significant investment to relaunch and extend the first Motorpoint
store in Derby
Finance Commission Changes
As widely reported, and following the landmark High Court rulings on 25
October 2024 that a broker could not lawfully receive a commission from a
lender without the customer's fully informed consent, lenders temporarily
withdrew product arrangements to finance vehicle purchases across the
industry. This temporary pause was to allow lenders the appropriate time to
update documentation to clearly explain the commission position to customers.
On 29 October 2024, our primary finance provider withdrew their 10.9% APR
product, which paid a commission to Motorpoint. They replaced this with a 7.9%
APR product, with no commission due to Motorpoint.
As a result, we operated for around 10 days with this arrangement whilst we
explored alternative options and ensured our commission disclosure was robust.
From 8 November 2024, we reinstated our arrangement with our primary provider,
with the same 10.9% APR rate and pre-existing commission, with enhanced
disclosure to customers.
These events are not expected to have any material impact on our full year
profit expectations.
Current Trading and Outlook
· Strong momentum has continued into H2 FY25:
· Delivered retail volume growth of 27% in October and remained
profitable in month
· Metal margins remain strong and used car prices stable
· Returned to pre-existing arrangement on 8 November with primary
provider following the 10 day temporary finance commission pause
· No material impact on trading to date, post the commission
reintroduction. No adverse feedback from customers in respect of commissions
disclosed
· Expect macroeconomic pressures to generally ease, with further,
moderate reductions in interest rates
· Supply of nearly new used vehicles should continue to slowly
increase
· Acceleration of strategic growth plans
Mark Carpenter, Chief Executive Officer of Motorpoint Group PLC commented:
"I am pleased with our solid performance in the first half of FY25, which was
marked by a return to profitability following several years of considerable
headwinds that have impacted our industry. Brilliant Basics, our right sizing
and margin improvement programme, delivered what it needed to in FY24,
ensuring foundations for future growth. As well as strong year on year volume
growth and market outperformance, margins strengthened, and stock turn
improved to an industry-leading 41 days in stock.
Following the challenges faced in recent times, we remain cautious as supply
slowly improves and macroeconomic pressures continue to ease, while
demonstrating our return to profitability, as we plan courses of action to
accelerate this growth. In response to higher demand for Motorpoint cars, we
have bolstered our team and have the firepower to restart investment in our
estate, including the opening of new stores. I am very excited by our plans to
unlock further profitable growth, and we are in a strong position to continue
increasing our share of the used car market."
Analyst & investor webinar
There will be a webinar for sell-side analysts and investors at 9:00am BST
today, the details of which can be
obtained from FTI Consulting via motorpoint@fticonsulting.com.
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 20 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, service and quality for customers.
Non-Executive Chair's statement
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. Reaching
these goals would require transformative levels of investment in new
capabilities including technology, data and analytics, digital commerce,
marketing, new sales and service stores and its omnichannel customer
proposition.
Beginning soon after these announcements, and continuing through today,
significant economic challenges have negatively impacted the used car market
and Motorpoint in particular. Motorpoint's capacity to invest in its
strategic plans has naturally been constrained. We have made modest but
targeted strategic progress while trying to balance our ambitions with
responsible financial management and remaining committed to our strategic
direction and to our belief in the size of our opportunity.
Our long term strategy is 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. 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.
Navigating a difficult market
The used car industry has faced difficult market conditions for an extended
period. High interest rates, periods of car price volatility, depressed
consumer demand and constrained vehicle supply combined to reduce our
profitability and cause upheaval in the industry. After a particularly
challenging FY23, and facing similar conditions in FY24, Motorpoint moved
quickly in that year to implement a right sizing and margin improvement
programme with the aim to limit losses and preserve cash. We aimed to
position the business for success in a smaller, contracted market, as well to
position it to extend its profitability and cash generation as the market
improved. By the end of FY24 conditions began improving and Motorpoint
looked ahead to an improved FY25.
Macroeconomic headwinds did in fact begin to ease in H1 FY25, used car prices
remained broadly stable and customer sentiment improved along with reductions
in interest rates. Our retail sales grew strongly, our margins increased and
days in stock improved to an industry-leading 41 days. This, coupled with our
more efficient cost base, ensured a return to profitability.
As much as we would like to put the challenges behind us and fully return to
our ambitious agenda of strategic investments, that is not yet a responsible
path. The supply of used vehicles remains subdued, interest rates remain
high, and the pace of the market's return to normalcy is unclear.
Nevertheless, during the remainder of FY25 we will make targeted investments
toward our long term strategic plans, including continued improvements to our
website, returning to our programme of adding stores, developing selective key
technology infrastructure, building data tools in pricing, transport and
allocation, 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.
I would like to thank the Motorpoint team for their continued agility and
resilience over the past few years which has positioned the business well, and
I am delighted that their hard work has been rewarded in FY25 with a return to
profitability and market share outperformance.
John Walden
Non-Executive Chair, Motorpoint PLC
26 November 2024
Chief Executive's statement
Overview
As macroeconomic headwinds eased in H1 FY25, used car prices remained broadly
stable and customer sentiment improved. Interest rate reductions in August and
November were welcome and future cuts will further aid profitability. The
supply of used vehicles remains subdued, particularly at the newer end of the
market. However, the increased customer demand, coupled with the successful
execution of our Brilliant Basics programme during FY24, resulted in a return
to profitability in FY25, and provides the Board with increasing confidence to
establish strategic plans to accelerate growth.
Brilliant Basics has laid firm foundations for growth
We launched Brilliant Basics last year to focus on driving operational
excellence, which has 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 into FY25.
Retail units grew strongly in the first half and August was our best
performing retail volume month since March 2022. We also significantly
outperformed peers with market share growth of 25% in Q2. We remained focused
on ensuring we stock the best value, affordable used cars for customers,
lowering our price points, as well as reinforcing our "Double the Difference"
lowest price guarantee. We also took a flexible approach to finance APRs and
lowered our rates for more expensive vehicles.
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 to an
industry-leading 41 days in the period (H1 FY24: 47 days). Strong metal margin
performance helped offset lower finance commissions impacted by high interest
rates.
As previously reported, our headcount had been significantly reduced in FY24,
following the thorough review of requirements and accountabilities to right
size the business. Since the year end, we have grown our teams in certain
stores and preparation centres to a total of 746 FTEs (710 at year end), in
response to material increases in demand for Motorpoint cars. The current
headcount remains significantly below the high of almost 950 in early FY23,
with technology improvements having increased efficiency and productivity.
Strategy update
Despite the market challenges during last year (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 short 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.
We have continued to invest in FY25, further enhancing our digital
capabilities and upscaling our E-commerce offering and recommencing our new
store opening programme. 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 again increased, by 16% on previous period, and we are becoming
increasingly more efficient in how the marketing budget is spent (£4.4m spent
in the first half, compared to £5.1m in H1 FY24). Customer acquisition cost
per retail unit fell from £198 to £147 over this same period. Website
sessions increased 24% from 6.55m to 8.15m.
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.
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. Further, completion of the buyback programme, coupled
with our strong cash position, allows the Group to invest (including trials
where needed), to accelerate our plans. These plans will include looking at
how we develop our supply chain channels, opening new stores and investing in
our existing estate, ensuring data intelligence becomes fundamental to how we
operate, broadening our brand reach, furthering technology advancement and
developing an aftersales offer.
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 will again measure team
satisfaction in the second half of FY25, but based on the last survey in early
2024, there continues to be strong satisfaction levels across all teams. Our
values scored highly, with 95% of the team who responded saying that they were
Proud to work for Motorpoint. Our staff turnover also improved to 23% from 32%
in the previous period.
We sponsor multiple initiatives to enhance our team's experience with
Motorpoint. Our 'One Big Dream' initiative has been a huge success, with our
people using two paid hours per month for their own fulfilment. Further to
this, nobody works on their birthday, when it falls on a working day; a
benefit which is extremely popular with the team.
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 continued to deliver what we believe is a market
leading proposition of Choice, Value, Service and Quality to our loyal
customers with an unerring focus on customer satisfaction. Our NPS for sold
vehicles (77) did dip slightly in the first half to levels last seen in FY19
and FY20. While this remains a good score, we are focused on improvements to
bring this back to above 80 in the second half. During the first half, we also
responded to the increased customer demand by recruiting into our busier
locations, which should support an improvement in NPS.
The final piece of our Virtuous Circle is delivering for our shareholders. We
are delighted that we have turned a corner and are profitable again. Cash
generation has been strong which is why we were able to successfully execute
the share buyback programme.
Environmental, Social and Governance (ESG)
The Group's ESG Committee has played a pivotal role in establishing ESG
targets. We are committed to being recognised as the most environmentally
friendly used car retailer and have made good strides in achieving our ESG
goals during this period.
We are proud to continue our strong collaboration with supply chain partners,
driving environmentally conscious decision-making. A standout achievement is
that all tyres removed from vehicles are repurposed as groundwork materials
for children's play parks, delivering both environmental benefits and
meaningful social impact at no additional cost.
We have achieved further reductions in energy consumption, with Scope 1 and 2
emissions and business travel in total down 11% compared to the previous
period. Additionally, we reduced our total waste by over 100 tonnes (30%),
with less than 1% of waste sent to landfill.
We also have made further improvements to support inclusion and remove
unconscious bias, and our new diversity, inclusion and equality training has
been recently completed by our teams.
Outlook
Our strong momentum has continued into H2 FY25 and we expect macroeconomic
pressures to generally ease, with further, moderate reductions in interest
rates. The supply of nearly new used vehicles should continue to slowly
increase, and we look forward to the acceleration of our strategic growth
plans.
Mark Carpenter
Chief Executive Officer
26 November 2024
FINANCIAL REVIEW
Group financial performance headlines
The period saw strong retail unit sales growth of 17.4% with 30.3k retail
vehicles sold (H1 FY24: 25.8k). Revenue for the six months ended 30 September
2024 reduced to £563.1m (H1 FY24: £607.2m) reflecting the more affordable
vehicle mix and price deflation, notably in H2 FY24.
Gross profit was £44.7m (H1 FY24: £37.7m). Gross margin increased to 7.9%
(H1 FY24: 6.2%). During the period, increased metal margin, through use of
data and improved stock management, offset the impact of lower finance
commissions.
Operating expenditure (before exceptional items in H1 FY24) increased by 6.9%
to £38.6m (H1 FY24: £36.1m), reflecting a rise in headcount to keep up with
the demand driven by the growth in retail sales, and wage inflation of c.3%.
Other variable costs were tightly controlled.
There were no exceptional items in H1 FY25.
Profit before taxation improved to £2.0m (H1 FY24: Loss before taxation
£(4.7)m). Finance costs reduced to £4.1m (H1 FY24: £5.3m), due to lower
borrowing requirements in the period.
Net cash remained in a strong position, supported by the return to
profitability, and we also successfully completed the share buyback programme,
which resulted in a cash cost of £5.0m. Net cash at 30 September 2024
improved to £11.2m (31 March 2024: £9.2m).
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 Wholesale
Total
H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24
£m £m £m £m £m £m
Revenue 502.2 509.8 60.9 97.4 563.1 607.2
Gross profit 39.9 32.7 4.8 5.0 44.7 37.7
Retail
Retail units sold increased by 17.4% in the period, with a total of 30.3k
units being sold (H1 FY24: 25.8k). Volumes in Q2 FY25 rose 26.8% compared to
Q2 FY24. Revenue from retail customers decreased slightly reflecting the more
affordable stock mix and price deflation (notably in H2 FY24). Average selling
price was £15.5k, down 17% on the previous period. 31.4% of retail units were
sold online and we continue to see around two thirds of customers choosing the
in-store experience for their vehicle purchase.
Gross margin of 7.9% showed a large improvement (H1 FY24: 6.4%), with our
greater focus on data-led pricing and stock management. Days in stock reduced
to an industry-leading 41 days in the period (H1 FY24: 47 days). Retail gross
profit per unit increased to £1,317 (H1 FY24: £1,267). We also removed our
£199 administration fee in October, to make our pricing absolutely
transparent for consumers.
Finance per vehicle sold decreased in the period by 14% to £639, influenced
by the impact of high interest rates. Our APR finance rates continue to be
competitive and as of 1 October 2024 we are offering 10.9% APR on all
vehicles. We continue to monitor this as we manage APR rates versus
commissions and affordability for consumers. The improved extended warranty
programme has compensated for the loss of GAP insurance.
Preparation costs per unit have increased in the period, which reflects the
move to selling more older vehicles.
Wholesale
The expansion of our retail vehicle age criteria has had a knock-on effect for
the wholesale business, since more vehicles are now sold through the retail
platform. Wholesale revenue via Auction4Cars.com, which sells vehicles that
have been part exchanged by retail customers, or directly purchased from
consumers, decreased by 37.5%. 13.0k vehicles were sold via this purely online
platform (H1 FY24: 13.5k). Wholesale gross profit per unit was consistent with
the previous period at £369 (H1 FY24: £370).
Operating expenses
Operating expenses before exceptional items (incurred in H1 FY24) increased
from £36.1m in H1 FY24 to £38.6m. Full time equivalent employees increased
to 746, from 693 at 30 September 2023, as we responded to increased demand.
Marketing costs decreased from £5.1m to £4.4m as we continue to target a
more strategic approach. Customer acquisition cost per retail unit dropped
sharply to £147, from £198 in the previous period. Other variable costs were
tightly controlled.
Exceptional items
Exceptional items were £nil in the period (H1 FY24: £1.0m; which constituted
one off restructuring costs, as a result of redundancies incurred during the
summer of 2023, with a reduction of around 85 employees).
Interest
The Group's net finance expense was £4.1m (H1 FY24: £5.3m); interest rates
remained high in the period, and the drop reflects lower borrowing
requirements. This was despite the £5.0m incurred on the share buyback.
Total interest charges on the stocking facilities in the period were £3.0m
(H1 FY24: £3.8m), reflecting lower inventory holding. Interest on lease
liabilities was £1.0m (H1 FY24: £1.1m) and interest on banking facilities
was a minimal £0.1m (H1 FY24: £0.4m).
Taxation
The tax charge 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
effective rate of tax in the year of 25.0% (H1 FY24: 25.0%) is in line with
the charge which would result from the standard rate of corporation tax in the
UK of 25.0% (effective from 1 April 2023).
Shares
At 30 September 2024, 86,619,822 ordinary shares were outstanding, and
1,478,469 were held in the Employee Benefit Trust. The share number decreased
by 4.0% from 90,189,885 from when the buyback started in March 2024.
Earnings per share
Basic and diluted earnings per share were both 1.7p (H1 FY24: both (3.9)p).
Dividends
No dividend was paid in the period (H1 FY24: £Nil) and the Board has not
declared an interim dividend (H1 FY24: £Nil).
Capital expenditure and disposals
Capital expenditure was £2.3m (H1 FY24: £1.9m); the biggest single item
being the purchase of land necessary to expand our Derby site (£0.9m). In
addition, in October 2024, we purchased the freehold of our Derby trading site
for consideration of £2.0m (before tax and fees). Other spend includes
technical investment and the introduction of MOT testing bays. The only
notable disposal was the sale of several home delivery trucks, at a small
profit.
Balance sheet
Net assets decreased since year end by £2.7m to £28.4m, which was due to the
share buyback completed during the period. Working capital was proactively
managed, with an improvement in the net cash position, supported by the return
to profitability, and despite the buyback.
Non-current assets were £65.6m (31 March 2024: £64.4m) made up of £9.7m of
property, plant and equipment, £51.4m right-of-use assets, intangible assets
of £3.1m and a deferred tax asset of £1.4m (31 March 2024: £8.8m, £50.5m,
£3.7m and £1.4m respectively). With the exception of the land for sale at
Glasgow, and the acquired additional land in Derby, all properties are on
leases of various lengths at 30 September 2024. A new lease was signed in
October for the H2 FY25 opening of our 21(st) store in Norwich.
The Group closed the period with £129.3m of inventory, up from £102.4m at 31
March 2024. Days in stock for the period were 41 days (H1 FY24: 47 days and
FY24: 45 days).
At 30 September 2024 the Group had £150.0m (31 March 2024: £150.0m) of
stocking finance facilities available of which £104.5m (31 March 2023:
£74.5m) was drawn. (Split Black Horse Limited £75.0m, and £75.0m with
Lombard North Central Plc).
The Group also has a £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 30 September 2024 £Nil (31 March 2024: £Nil)
was drawn on this facility, with net cash (excluding lease liabilities) of
£11.2m (31 March 2024: £9.2m).
Trade and other receivables of £17.9m were broadly similar to previous year
end (31 March 2024: £19.2m).
Trade and other payables, inclusive of the stock financing facilities, have
increased to £137.1m (31 March 2024: £107.1m) with most of the movement
being due of the increase in the stocking facility balance.
The slight increase in total lease liabilities to £58.0m (31 March 2024:
£57.0m) reflects the renegotiation of the lease at Chingford, less repayments
made during the period.
Finance commission
Following the FCA Motor Market Review in March 2019, the 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 Financial Conduct Authority (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 now extended the time period of its review into 2025. Since the
ruling on 25 October, the Group altered its selling processes to comply with
new requirements from its lenders, which includes upfront full commission
disclosure.
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.
Cash flow
Cash flow from operations was £16.0m inflow (H1 FY24: £13.1m inflow). The
higher inflow largely reflects the return to profitability. Both periods saw
improved working capital utilisation.
Other main items in the cash flow include capital expenditure of £2.3m (H1
FY24: £1.9m), principal lease repayments of £2.9m (H1 FY24: £1.9m),
interest payments of £4.1m (H1 FY24: £5.3m) and share buyback payments of
£4.7m (H1 FY24: £Nil).
Capital structure and treasury
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.
The Group's long term funding arrangements consist primarily of the stocking
finance facilities with Black Horse Limited and Lombard North Central Plc (to
a maximum of £150.0m) and an unsecured loan facility provided by Santander UK
plc, split between £6.0m available as an uncommitted overdraft and £14.0m
available as a revolving credit facility. This facility runs until June 2026
with the option to extend for two further one year extensions if agreed by
both parties.
Chris Morgan
Chief Financial Officer
26 November 2024
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE FY25 UNAUDITED
INTERIM RESULTS
The Directors confirm that these condensed consolidated interim financial
statements have been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the European Union
and that the interim management report includes a fair review of the
information required by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during the
first six months and their impact on the condensed consolidated interim
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
· material related-party transactions in the first six months and
any material changes in the related-party transactions described in the last
annual report.
A list of current Directors and their biographies is maintained on the
Motorpoint Group PLC website www.motorpointplc.com
(https://url.avanan.click/v2/___http:/www.motorpointplc.com___.YXAxZTpzaG9yZWNhcDphOm86OGZlYTEwOWYwMWQ1M2FiOWFhYTQ1NWE5NDEyNDc0Mzk6NjoxMjQ3OjM1NWJiOWE4NzcyMjJkMTk1NGU1OWQxOWE2Nzg4MmJlNzRiNTU1OTAxYzljMjU5NDZhYTA2YzdjZTY5OTk4MWY6cDpU)
By order of the Board
Mark
Carpenter
Chief Executive Officer
26 November 2024
Statement of Comprehensive Income
For the six months ended 30 September 2024
Unaudited Six Months ended 30 September 2024 Unaudited Six Months ended 30 September 2023
Total
Before Exceptional Items Exceptional Items Total
Note £m £m £m £m
Revenue 6 563.1 607.2 - 607.2
Cost of sales (518.4) (569.5) - (569.5)
Gross profit 44.7 37.7 - 37.7
Operating expenses (38.6) (36.1) (1.0) (37.1)
Operating profit / (loss) 6.1 1.6 (1.0) 0.6
Finance costs 7 (4.1) (5.3) - (5.3)
Profit / (Loss) before taxation 2.0 (3.7) (1.0) (4.7)
Taxation 8 (0.5) 0.9 0.3 1.2
Profit / (Loss) for the period 1.5 (2.8) (0.7) (3.5)
Total comprehensive income / (expense) for the period attributable to equity 1.5 (2.8) (0.7) (3.5)
holders of the parent
Earnings per share
Basic 9 1.7p (3.9)p
Diluted 9 1.7p (3.9)p
The Group's activities all derive from continuing operations.
Total comprehensive income / expense for the period is all attributable to the
shareholders of the Company.
Condensed Consolidated Balance Sheet
As at 30 September 2024
30 September 2024 (unaudited) 30 September 2023 (unaudited) 31 March 2024
Note £m £m £m
ASSETS
Non-current assets
Property, plant and equipment 11 9.7 12.4 8.8
Right-of-use assets 12 51.4 55.4 50.5
Intangible assets 10 3.1 4.2 3.7
Deferred tax assets 1.4 - 1.4
Total non-current assets 65.6 72.0 64.4
Current assets
Inventories 129.3 143.8 102.4
Trade and other receivables 13 17.9 18.1 19.2
Current tax receivable - 0.9 -
Cash and cash equivalents 11.2 11.2 9.2
Assets held for sale 2.4 - 2.6
Total current assets 160.8 174.0 133.4
TOTAL ASSETS 226.4 246.0 197.8
LIABILITIES
Current liabilities
Trade and other payables, excluding contract liabilities 15 (137.1) (107.1)
(145.6)
Lease liabilities 14 (4.5) (4.2) (4.0)
Current tax liabilities (0.3) - -
Total current liabilities (141.9) (149.8) (111.1)
NET CURRENT ASSETS 18.9 24.2 22.3
Non-current liabilities
Lease liabilities 14 (53.5) (57.5) (53.0)
Provisions 16 (2.6) (2.6) (2.6)
Deferred tax liabilities - (0.2) -
Total non-current liabilities (56.1) (60.3) (55.6)
TOTAL LIABILITIES (198.0) (210.1) (166.7)
NET ASSETS 28.4 35.9 31.1
EQUITY
Share capital 0.9 0.9 0.9
Capital redemption reserve 0.1 0.1 0.1
Capital reorganisation reserve (0.8) (0.8) (0.8)
Employee Benefit Trust reserve (4.7) (5.3) (5.1)
Retained earnings 32.9 41.0 36.0
TOTAL EQUITY 28.4 35.9 31.1
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 September 2024
Six Months Ended 30 September Share capital Capital redemption reserve Capital reorganisation reserve EBT reserve Retained earnings Total equity
2024 (Unaudited)
£m £m £m £m £m £m
At 1 April 2024 0.9 0.1 (0.8) (5.1) 36.0 31.1
Total comprehensive income for the period - - - - 1.5 1.5
Transactions with
owners in their capacity
as owners:
Share-based payments - - - - 0.5 0.5
Buyback and cancellation of shares - - - - (4.7) (4.7)
Share-based compensation options satisfied through EBT - - - 0.4 (0.4) -
At 30 September 2024 0.9 0.1 (0.8) (4.7) 32.9 28.4
Six Months Ended 30 September Share capital Capital redemption reserve Capital reorganisation reserve EBT reserve Retained earnings Total equity
2023 (Unaudited)
£m £m £m £m £m £m
At 1 April 2023 0.9 0.1 (0.8) (5.3) 44.0 38.9
Total comprehensive expense for the period - - - - (3.5) (3.5)
Transactions with
owners in their capacity
as owners:
Share-based payments - - - - 0.5 0.5
Share-based compensation options satisfied through EBT - - - - - -
At 30 September 2023 0.9 0.1 (0.8) (5.3) 41.0 35.9
Condensed Consolidated Cash Flow Statement
For the six months ended 30 September 2024
Unaudited Six Months ended 30 September 2024 Unaudited Six Months ended 30 September
2023
£m £m
Profit / (Loss) attributable to equity shareholders 1.5 (3.5)
Adjustments for:
Taxation charge / (credit) 0.5 (1.2)
Finance costs 4.1 5.3
Operating profit 6.1 0.6
Share-based payments 0.5 0.1
Depreciation and amortisation charges 5.0 5.1
Profit on disposals of property, plant and equipment (0.1) -
Cash flow from operations before movements in working capital 11.5 5.8
(Increase) / Decrease in inventory (26.9) 4.8
Decrease in trade and other receivables 1.3 0.7
Increase in trade and other payables 30.1 1.8
Cash generated from operations 16.0 13.1
Interest paid on borrowings and financial facilities (3.1) (4.2)
Interest paid on lease liabilities (1.0) (1.1)
Income tax received - 1.6
Net cash generated from operating activities 11.9 9.4
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets (2.3) (1.9)
Net cash used in investing activities (2.3) (1.9)
Cash flows from financing activities
Payments to acquire own shares (4.7) -
Repayment of leases (2.9) (1.9)
Repayment of borrowings (14.0) (19.5)
Proceeds from borrowings 14.0 19.5
Net cash used in financing activities (7.6) (1.9)
Net increase in cash and cash equivalents 2.0 5.6
Cash and cash equivalents at the beginning of the period 9.2 5.6
Cash and cash equivalents at end of the period 11.2 11.2
Net cash and cash equivalents comprises:
Cash at bank 11.2 11.2
The notes form an integral part of these Condensed Consolidated Interim
Financial Statements.
1. Basis of Preparation
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, DE21 6LY. The Condensed Consolidated Interim Financial
Statements of the Company as at and for the six months ended 30 September 2024
comprise the Company, all of its subsidiaries and the Motorpoint Group Plc
Employee Benefit Trust (the 'EBT'), together referred to as the "Group". These
Interim financial statements are presented in pounds sterling because that is
the currency of the primary economic environment in which the Group operates.
The Condensed Consolidated Interim Financial Statements for the six months
ended 30 September 2024 are unaudited and the auditors have not performed a
review in accordance with ISRE 2410, Review of Interim Financial Information
Performed by the Independent Auditor of the Entity.
Going concern
The interim financial statements are prepared on a going concern basis. The
Group regularly reviews market and financial forecasts and has reviewed its
trading prospects in its key markets.
The Group has managed its net debt comfortably, with headroom at the period
end of £14.0m on the Revolving Credit Facility and £6.0m on the uncommitted
overdraft, both of which were undrawn at the period end. The Board considers
that the available headroom, coupled with the highly cash generative nature of
the business and the available cash levers provide a strong degree of
financial resilience and flexibility.
The Board has reviewed the latest forecasts of the Group, including the impact
of multiple scenarios, and considered the obligations of the financing
arrangements.
For the purpose of considering going concern the Group focuses on a period of
at least 12 months from the point of signing the interim results.
The Board has considered a severe but plausible downside scenario, when
compared with the base model, in considering the going concern status of the
Group, reducing volumes and prices, and increasing interest rates and
comparing with headroom available against banking covenants and liquid
resources required to continue trading. In this case, the business would make
efforts to reduce expenditure at both current sites and consider the capital
expenditure for any new sites. This scenario demonstrates that the Group would
comply with the relevant covenants.
The Board is aware of the impact of potential economic headwinds and worldwide
vehicle supply chain challenges as described previously, but after assessing
these risks do not believe there to be a material risk to the going concern of
the Group.
Given the continued historical liquidity of the Group and sufficiency of
reserves and cash in the stressed scenarios modelled, the Board has concluded
that the Group has adequate resources to continue in operational existence
over the going concern period and into the foreseeable future thereafter.
Accordingly, they continue to adopt the going concern basis in preparing the
interim results.
2. Statement of Compliance
These Condensed Consolidated Interim Financial Statements have been prepared
in accordance with UK adopted IAS 34 Interim Financial Reporting and the
Disclosure and Transparency Rules sourcebook of the UK's Financial Conduct
Authority. The financial information included does not constitute statutory
accounts within the meaning of section 434 of the Companies Act 2006 ('the
Act') and do not include all the information required for full annual
financial statements. Accordingly, they should be read in conjunction with the
Annual Report and Financial Statements of Motorpoint Group PLC for the year
ended 31 March 2024. These condensed consolidated interim financial statements
were approved by the Board of Directors on 26 November 2024.
3. Significant Accounting Policies
The same accounting policies, presentation and methods of computation which
were followed in the preparation of the Annual Report and Financial Statements
for Motorpoint Group PLC for the period ended 31 March 2024 have been applied
to these Condensed Consolidated Interim Financial Statements where applicable.
The accounting policies and details of new standards adopted in the year ended
31 March 2024 are listed in the Motorpoint Group PLC Annual Report and
Financial Statements on pages 132-141.
4. Comparative Figures
The comparative figures for the financial year ended 31 March 2024 are
extracted from the Motorpoint Group PLC Annual Report and Financial Statements
for that financial year. The accounts have been reported on by the Company's
auditor and delivered to the Registrar of Companies. The report of the auditor
was (i) unqualified, (ii) did not include a reference to any matters to which
the auditor drew attention by way of emphasis without qualifying their report
and (iii) did not contain a statement under section 498(2) or (3) of the Act.
5. 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 marketplace platform
which is assessed by the Board as a separate operation and thus there are two
reportable segments: retail and wholesale.
Retail Retail Wholesale Wholesale Total Total
30 September 2024 30 September 2023 30 September 2024 30 September 2023 30 September 2024 30 September 2023
£m £m £m £m £m £m
Revenue 502.2 509.8 60.9 97.4 563.1 607.2
Cost of sales (462.3) (477.1) (56.1) (92.4) (518.4) (569.5)
Gross profit 39.9 32.7 4.8 5.0 44.7 37.7
6. Revenue
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 operates a return policy which is consistent with the relevant
consumer protection regulations. This is offered in the form of a 14 day money
back guarantee for home delivery customers.
(ii) Sales of motor related services and commissions
Motor related services sales include commissions on finance introductions,
extended guarantees and vehicle asset protection as well as 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.
Vehicle extended guarantees and asset protection ('GAP insurance') where the
Group is contractually responsible for future claims 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 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
was terminated in H2 FY24.
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.
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.
Six Months ended 30 September 2024 Six Months ended 30 September 2023
£m £m
Revenue from sale of motor vehicles 536.2 578.1
Revenue from motor related services and commissions 23.8 25.9
Revenue recognised that was included in deferred income at the beginning of 0.1 0.2
the period - Sale of motor vehicles
Revenue recognised that was included in deferred income at the beginning of 3.0 3.0
the period - Motor related services and commissions
Total Revenue 563.1 607.2
7. Finance costs
Six Months ended 30 September 2024 Six Months ended 30 September 2023
£m £m
Interest on bank borrowings 0.1 0.4
Interest on stocking finance facilities 3.0 3.8
Other interest payable 1.0 1.1
Total Finance costs 4.1 5.3
8. Taxation
The tax charge for the period is provided at the effective rate of 25.0% (H1
FY24: 25.0%) representing the best estimate of the average annual tax rate for
the full year profit.
9. Earnings per share
Basic and diluted earnings per share are calculated by dividing the earnings
attributable to equity shareholders by the weighted average number of ordinary
shares at the end of the period.
No dilution in H1 FY24 due to the Group making a loss before taxation.
Six Months ended 30 September 2024 Six Months ended 30 September 2023
Profit / (Loss) Attributable to Ordinary Shareholders (£m) 1.5 (3.5)
Weighted average number of ordinary shares in issue ('000) 88,261 90,190
Basic Earnings per share (pence) 1.7 (3.9)
Diluted number of shares in issue ('000) 88,600 90,190
Diluted Earnings per share (pence) 1.7 (3.9)
The difference between the basic and diluted weighted average number of shares
represents the dilutive effect of the various Group share plans. This is shown
in the reconciliation below.
Six Months ended 30 September 2024 Six Months ended 30 September 2023
Weighted average number of ordinary shares in issue ('000) 88,261 90,190
Adjustment for share options ('000) 339 -
Weighted average number of ordinary shares for diluted earnings per share
('000)
88,600 90,190
10. Intangible assets
Work in Progress IT projects Total
£m
£m £m
At 1 April 2024 - 3.7 3.7
Additions 0.1 - 0.1
Amortisation - (0.7) (0.7)
At 30 September 2024 0.1 3.0 3.1
11. Property, plant and equipment
Land Short term leasehold improvement Plant and machinery Fixtures and fittings Office equipment Total
Work in Progress
£m £m £m £m £m £m £m
At 1 April 2024
Cost - 15.2 2.3 3.9 5.1 - 26.5
Accumulated depreciation - (9.1) (1.9) (2.4) (4.3) (17.7)
-
Net book value - 6.1 0.4 1.5 0.8 - 8.8
Opening net book value - 6.1 0.4 1.5 0.8 - 8.8
Additions 0.9 0.3 0.5 0.3 0.1 0.1 2.2
Depreciation - (0.7) (0.1) (0.2) (0.3) - (1.3)
Closing net book value 0.9 5.7 0.8 1.6 0.6 0.1 9.7
At 30 September 2024
Cost 0.9 15.5 2.8 4.2 5.2 0.1 28.7
Accumulated depreciation
- (9.8) (2.0) (2.6) (4.6) - (19.0)
Net book value 0.9 5.7 0.8 1.6 0.6 0.1 9.7
12. Right-of-use assets
30 September 2024 30 September 2023 31 March 2024
£m £m £m
Balance brought forward 50.5 58.4 58.4
Additions 3.9 - -
Disposals - - (2.0)
Depreciation (3.0) (3.0) (5.9)
51.4 55.4 50.5
13. Trade and other receivables
30 September 30 September 31 March
2024 2023 2024
Due within one year £m £m £m
Trade receivables 9.3 9.6 9.7
Prepayments 1.6 2.1 4.6
Accrued income 7.0 6.4 4.9
17.9 18.1 19.2
The Directors' assessment is that the fair value of trade and other
receivables is equal to the carrying value. Accrued income relates to
commissions earned from finance companies.
14. Lease liabilities
30 September 30 September 31 March
2024 2023 2024
Lease liabilities £m £m £m
Balance brought forward 57.0 63.6 63.6
Additions to lease liabilities 3.9 - -
Disposals of lease liabilities - - (2.0)
Repayment of lease liabilities (including interest element) (3.9) (3.0) (6.6)
Interest expense related to lease liabilities 1.0 1.1 2.0
58.0 61.7 57.0
Current 4.5 4.2 4.0
Non-current 53.5 57.5 53.0
58.0 61.7 57.0
15. Trade and other payables
Due within one year
30 September 30 September 31 March
2024 2023 2024
£m £m £m
Trade payables
- Trade creditors 14.7 20.8 13.1
- Stocking finance facilities 104.5 102.3 74.5
Other taxes and social security
- VAT payable 1.8 4.3 1.4
- PAYE/NI payable 0.9 0.7 0.9
Other creditors 0.2 1.5 0.1
Accruals and deferred income 15.0 16.0 17.1
137.1 145.6 107.1
The Directors' assessment is that the fair value of trade and other payables
is equal to the carrying value.
16. Provisions
30 September 30 September 31 March
2024 2023 2024
£m £m £m
Make good provision(1) 2.6 2.5 2.5
Onerous leases(2) - 0.1 0.1
2.6 2.6 2.6
Current - - -
Non-current 2.6 2.6 2.6
2.6 2.6 2.6
(1) Make good provision
The Group may be required to restore leased premises to their original
condition at the end of the respective lease terms. A provision has been
recognised for the present value of the estimated expenditure required to
remove any leasehold improvements. These costs have been capitalised as part
of the cost of right-of-use assets and are amortised over the shorter of the
term of the lease and the useful life of the assets.
The timing of the cash outflow relating to the make good provision is in line
with the life of the relevant lease. The remaining term on existing leases
ranges from two to 15 years with a weighted average of nine years.
There is judgement associated with the potential cost of remediation of each
property and estimated provisions have been based on the past experience of
the Group.
(2) Onerous leases
The Group operates across a number of locations and if there is clear
indication that a property will no longer be used for its intended operation,
a provision may be required based on an estimate of potential liabilities for
periods of lease where the property will not be used at the end of the
reporting period, to unwind over the remaining term of the lease. The onerous
lease has been disposed of in the current period.
17. Share Capital
30 September 2024 30 September 2023 31 March 2024
Number Amount Number Amount Number Amount
'000 £m '000 £m '000 £m
Allotted, called up and fully paid ordinary shares of 1p each
Balance at the beginning of the period 89,970 0.9 90,190 0.9 90,190 0.9
Bought back and held as treasury shares during the period - - - - (30) -
Treasury shares released for cancellation 30 - - - - -
Cancelled treasury shares (30) - - - - -
Bought back and cancelled during the period (3,350) - - - (190) -
Balance at the end of the period 86,620 0.9 90,190 0.9 89,970 0.9
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 as at 30 September, 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 (H1 FY25: 3,349,808
shares at a cost of £4.7m).
The Group does not have a limited amount of authorised capital.
18. Post balance sheet events
After the period end, an eight year lease agreement was signed for a new site
in Norwich for an annual rent of £235k. In addition, the freehold of our
trading site in Derby was purchased for consideration of £2.0m, excluding tax
and fees.
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