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
Mark Carpenter, Chief Executive
Officer
Chris Morgan, Chief Financial
Officer
|
via FTI Consulting
|
FTI
Consulting (Financial PR)
Alex Beagley
Harriet Jackson
Amy Goldup
|
020 3727 1000
|
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.