Motorpoint has returned to profitability on the back of a 17% increase in sales volumes and a ‘back to basics’ approach to operational excellence.
Mark Carpenter, Motorpoint Group chief executive said the successful execution of its “Brilliant Basics programme” during financial year 2024, alongside the easing of macroeconomic pressures, has resulted in a return to profitability.
The company provided a trading update for its performance for the six months ended September 30 and said profit before taxation is expected to be around £2 million compared to a £3.7m loss for the first half of its 2024 financial year.
Motorpoint said it is currently enjoying an “industry leading” stock turn at 41 days on average, compared with 47 days year-on-year for the same period.
The strong momentum the company is now experiencing is reflected in the launch of its 21 store in Norwich, which is expected to open in the second half of its financial year.
Carpenter said: “The resilience of the Motorpoint business model has been proven once again.
“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.”
Motorpoint launched a share buyback programme in March this year, which has now completed. Over 3.5 million ordinary shares in the business 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% of the issued share capital of the company when the buyback programme commenced.
Motorpoint said the completion of the buyback programme “allows for further investment to support organic, profitable growth, given the significant opportunities identified”.
The business expects to announce its interim results on November 27, 2024.
Motorpoint had to cut jobs, redce stock purchase costs and rightsize the business following a diffcult 2023, which it blamed on difficult macroeconomic conditions.
