REG - Motorpoint Group plc - Half Year Trading Update

MotorpointAnnouncement

08/10/2024 07:00

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RNS Number : 2374H  Motorpoint Group plc  08 October 2024

8 October 2024

Motorpoint Group PLC

("Motorpoint" or the "Group")

 

Half Year Trading Update

 

Year on year volume growth of 17% and return to profitability in H1 FY25

 

Motorpoint Group PLC, the UK's leading independent omnichannel vehicle
retailer, provides an update on its trading performance for the six months
ended 30 September 2024 ("H1 FY25").

 

Highlights

 ·         Strong retail volume growth of 17% in H1 FY25 compared with H1 FY24
           Returned to profitability in H1 FY25; Profit before taxation is expected to be
           c.£2.0m (H1 FY24: £(3.7m) loss before taxation and exceptional items). No
           exceptional items in H1 FY25
 ·         Industry leading stock turn: days in stock improved to 41 days (H1 FY24: 47
           days)
 ·         Successful completion of share buyback programme and, despite buying back 3.6m
           shares at a cost of £5.0m, net cash at 30 September was £11.2m, in line with
           expectations
 ·         Our 21(st) store is expected to open in Norwich in H2 FY25
 ·         Strong momentum going into H2 FY25

 

Profitability

 

As macroeconomic headwinds eased in H1 FY25, used car prices and margins
remained broadly stable and customer sentiment improved. The first reduction
of interest rates in August was encouraging and future cuts should 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 to
drive operational excellence and right size the business, has resulted in a
return to profitability in FY25, and provides the Board with confidence to
establish plans to accelerate growth.

 

Share Buyback

 

The Board is pleased to announce that the share buyback programme, which
commenced on 11 March 2024, has been successfully completed. Between 11 March
2024 and 6 September 2024, 3,570,063 ordinary shares in the Company were
repurchased on the London Stock Exchange for cancellation, at an average price
of 139.7 pence per share and a total cost, excluding expenses, of £4.987m.
This represented 4.0 per cent of the issued share capital of the Company when
the buyback programme commenced. The completion of the buyback programme
allows for further investment to support organic, profitable growth, given the
significant opportunities identified.

 

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

 

"The resilience of the Motorpoint business model has been proven once again
and I am delighted to confirm that the successful execution of our Brilliant
Basics programme during FY24, alongside the easing of macroeconomic pressures,
has resulted in a return to profitability. We also welcomed the first interest
rate cut in August, the same month that we achieved our highest performing
retail volume since March 2022.

 

This solid performance in the first half of the year stands us in good stead
as we look to progress our strategy to accelerate growth, and I would like to
thank our incredibly hardworking colleagues for what they have delivered so
far this year. I am confident that we are entering the second half with strong
momentum."

 

The Group expects to announce its Interim Results on 27 November 2024.

 

ENDS

 

Enquiries:

 

 Motorpoint Group PLC                      via FTI Consulting

 Mark Carpenter, Chief Executive Officer

 Chris Morgan, Chief Financial Officer

 FTI Consulting (Financial PR)             020 3727 1000

 Alex Beagley

 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 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, service and quality for customers.

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