9:32 am, July 23, 2019
INDEPENDENT vehicle retailer Motorpoint is bracing itself for a drop in half-year profit, it announced this morning.
In a statement issued ahead of its annual meeting, taking place at 11am today, chairman Mark Morris said company revenue had grown over the first three months of the financial year in the face of a ‘challenging consumer environment and ongoing uncertain political backdrop’, which reflected ‘further encouraging market share gains against a declining market’.
But he added: ‘Gross margin has performed below last year’s strong comparative period, impacted by unusually high supply levels. This margin pressure is expected to result in Motorpoint reporting a profit for the six months ending 30 September 2019 below the same period last year.’
There is still optimism, though, with Morris also saying: ‘The company has experienced a strengthening margin trend in July and, combined with the impact of improved business processes, the board believes Motorpoint is well placed to continue to take market share and remains confident in its full year outlook.’
Last month, Motorpoint reported a profit rise for the year ending March 31.
MORE: Motorpoint sees revenue top £1bn and profit increase for year
