Motorpoint announces share buyback programme as pre-tax profit shoots up by 304 per cent

Motorpoint announces share buyback programme as pre-tax profit shoots up by 304 per cent

MOTORPOINT today announced half-year pre-tax profits of £9.7 million – a rise of 304 per cent against the first half’s £2.4m.

In the unaudited interim results for the six months to the end of September, which also confirmed earlier expectations that profit before tax and exceptional items would go up by 64 per cent to £10.5m, it said revenue had risen by 18 per cent to £483.2m.

Among its operational highlights, it listed the opening of its 12th retail site, which took place in Sheffield in April, as well as the number of repeat customers increasing by 20.5 per cent.

Chief executive Mark Carpenter, pictured, said: ‘The group has delivered a strong first half of the financial year with significant increases across all key performance indicators. The new sites that have opened in the last two years continue to deliver an improving performance as they gain awareness in their local markets and increase our share in the nearly new market.

‘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. The board is therefore confident of delivering full-year results in line with market expectations.’

The UK’s largest independent vehicle retailer also announced today that it was launching a share buyback programme of up to £10 million to reduce its share capital and return funds to shareholders who sell their shares. Any repurchased shares will be cancelled. The programme is expected to end by June 30, 2018.

Carpenter said: ‘This has been possible due to the group’s robust balance sheet position and cash-generative business model.’

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