Motorpoint’s profits fall by 35 per cent despite increased revenue

Motorpoint’s profits fall by 35 per cent despite increased revenue

MOTORPOINT’S post-tax profits dropped by 35 per cent over the past financial year, it revealed today in its final results. 

The independent vehicle retailer said that profit before tax and exceptional items fell from £18.2m in the 2015-2016 financial year to £15.2m in the year ending March 31, 2017 – a decrease of 13.7 per cent.

Removing exceptional items from the equation saw an even greater dip in pre-tax profit of nearly 31 per cent from £16.9m to £11.7m (30.8 per cent), while operating profit after tax plummeted from £13.4m to £8.7m – down by 35 per cent.

However, revenue rose by 12.7 per cent from £729.2m to £822.0m.

As such, the board has recommended a first full-year dividend of 2.90p per share, giving a total dividend of 4.23p for the year. This will be tabled for approval at the annual meeting on July 26, with payment expected to be made in September. An interim dividend of 1.33p per share was paid on March 17.

Chief executive Mark Carpenter, pictured, said: ‘The group continued to make progress during the year, particularly in the second half and I am encouraged by the performance of our two new site openings. Customer satisfaction scores have increased across the group, demonstrating the effectiveness of our unique business model which is built around the cornerstones of choice, value and service.

‘Whilst we remain mindful of the current uncertain economic environment, trading at the beginning of the new financial year has started to plan and continued the positive trend from Q4 FY17. We remain well placed to continue growing the Motorpoint brand and to extend our compelling, value-focused proposition to more customers across the UK.

‘Our market-leading position, combined with our focus on nurturing talent within the business and commitment to delivering exceptional customer service, leave us confident about the group’s trading prospects for the year ahead.’

He added: ‘Customer satisfaction remains a key priority for the group and we measure this using Net Promoter Score. Our Net Promoter Score for the year increased from 72 per cent to 77 per cent, and has increased from 59 per cent in FY14, something of which we are very proud. Our repeat customers continue to grow, allowing our marketing costs to remain modest in established sites.’ He attributed the rise to ‘ the continued hard work of our colleagues’.

This was the first full-year financial review for Motorpoint Group plc, which was incorporated in April 2016 ahead of its admission to trading on the London Stock Exchange the following month, and chief financial officer James Gilmour said today that the group’s financial position remained strong.

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