Motorpoint lifts FY expectations after record interims

25 November 2021

(Sharecast News) - Vehicle retailer Motorpoint reported record-breaking first-half revenue and profit on Thursday as it said full-year numbers were set to be "significantly ahead" of its expectations.
In the six months to 30 September, pre-tax profit increased 39.2% to £13.5m on revenue of £605.2m, up 56.1% from the same period a year ago. This reflects a record performance after reopening, continued strong consumer demand for used vehicles and strong market share gains, it said.

Basic earnings per share rose 34.1% to 11.8p.

"Despite the ongoing constriction in the supply of new vehicles, which is expected to continue into 2022 and beyond, in recent weeks we have been able to use our market position to access more stock to satisfy customer demand, both online and in branch," Motorpoint said.

"This increased demand reinforces our belief that our customer-centric, omnichannel proposition remains the most appropriate business model for the used car market."

The company said revenue and profit in October remain "well ahead" of the same periods in FY21 and FY20. As a result, it is confident it will deliver revenue ahead of plan for the full year, meaning that pre-tax profit will be "significantly ahead" of its expectations.

Motorpoint also announced the appointment of John Walden as its new executive chairman with effect from 10 January 2022, as Mark Morris has decided to step down after 11 years with the group.

Walden is currently chairman of Snowfox Topco, the parent company of the Yo! group and the Snowfox group and has had prior roles including chairman of Naked Wines, chairman of the parent company of Holland & Barrett, chief executive of Argos and its parent company Home Retail, and several senior roles with Best Buy Co.

At 0825 GMT, the shares were down 1% at 353.22p.