Repeat business drives Motorpoint revenue higher
Motorpoint Group
138.00p
16:50 19/04/24
Independent vehicle retailer Motorpoint Group returned an impressive fourfold increase in pre-tax profit over the six months leading to 30 September as an uptick in return customers pushed revenues ahead.
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Revenue grew 18% to end the half at £483.2m and, combining that figure with the "more normalised margin levels" that Motorpoint witnessed throughout the half; pre-tax profits rocketed 300% from £2.4m at the midway point of 2016 to £9.7m.
Motorpoint generated strong cash flow of £20.5m throughout the period, a 225.4% year-on-year increase, boosting cash and equivalents from £6.5m to £21.4m.
The firm grew to 12 sites in the half after the opening of its Sheffield retail location, bolstering its presence in the Midlands and the North, and putting it on track to open its 20th retail site in the UK in the medium-term.
Mark Carpenter, chief executive officer, said on Wednesday, "The group has delivered a strong first half of the financial year with significant increases across all KPIs."
"The second half has started well and the group's resilient business model and focus on delivering choice, value and service leaves it ideally positioned to continue its market share growth of nearly new car sales.
"Whilst market conditions are always subject to external changes, the supply of stock coming into the business remains good and management are comfortable with the group's trading performance so far in H2," he added.
The firm separately announced a share buyback programme for as much as £10m that was expected to end no later than 30 June as the group looked to reduce its share capital.
Earnings per share gained 62.3% to 8.6p in the first half.
As of 0830 GMT, shares had gained 4.65% to 180p.