REG - Motorpoint Group plc - Q4 Trading Update

MotorpointAnnouncement

04/04/2024 07:00

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RNS Number : 2321J  Motorpoint Group plc  04 April 2024

4 April 2024

Motorpoint Group PLC

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

 

Q4 Trading Update

 

 

Motorpoint Group PLC, the UK's leading independent omnichannel vehicle
retailer, provides an update on its trading performance for the quarter ended
31 March 2024 ("Q4") ahead of announcing its Final Results for the year ended
31 March 2024.

 

Q4 Highlights:

 

·    Strong and profitable Q4 performance with retail volume up c.9% year
on year and continued margin recovery

·    Loss Before Tax for the full year therefore anticipated to be at the
favourable end of management expectations

·    Balance sheet robust with no structural debt and c.£9m of cash at 31
March 2024

·    Share buyback initiated to repurchase and cancel up to 5m shares;
220,255 repurchased as at 31 March 2024

 

Profitability

 

As anticipated in our Q3 Trading Update, the positive momentum experienced at
the start of the calendar year continued through February and March, with Q4
retail volume increasing by c.9% year on year. As a consequence, January,
February and March were all profitable months. Consumer demand has picked up,
and we have benefitted from the numerous enhancements made to our digital
presence during the past year which, among other things, is generating strong
website traffic. Margins gradually improved through Q4 as we increased stock
turn and sold through stock affected by the abrupt Q3 correction in used car
values.

 

Our cost management remains tightly controlled, with savings achieved in
people costs following FY24's rightsizing programme and efficiencies resulting
from technology investment.

 

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

 

"I am delighted that the difficult conditions experienced in 2023 have eased
in Q4 and, combined with our focus on driving operational excellence through a
programme we call Brilliant Basics, has meant that Q4 was characterised by
consistent profitability. We are achieving growth, increasing stock turn and
improving margins, and this is expected to continue into FY25 as supply
improves following recent new car registration growth. I am therefore
optimistic for FY25 and look forward to Motorpoint making the most of the
growth opportunities ahead."

 

Inside Information: This announcement contains inside information for the
purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018
("MAR").

 

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 E-commerce led omnichannel vehicle
retailer, focused on giving retail and trade customers the easiest, most
affordable and seamless way of buying, selling and financing their car whether
online, in store or a combination of both. Through its leading B2C platform
Motorpoint.co.uk and UK network of 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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