8:15 am, January 27, 2023
Motorpoint has given a bullish third quarter trading update, but said it’s felt the effects of plummeting used electric car values.
The used car supermarket business said revenue for the nine months ended December 31, 2022, came to £1.06bn, up 17 per cent year on year.
The gains in revenue were helped by ‘vehicle mix and price inflation’, Motorpoint said in an update to the London Stock Exchange this morning (Jan 27).
December 2022 and January 2023 also saw a return to year on year retail volume growth.
However, falling values of used electric cars were felt by Motorpoint with gross profit per unit taking a hit. Higher financing costs also had an impact.
It added that these factors will ‘continue to impact sales and profitability for the foreseeable future’.
The company said Q3 helped it continue its ‘strong progress’ on its medium-term growth plan of achieving over £1bn in e-commerce sales and over £2bn in total sales.
Motorpoint also said it will open two new supermarkets – Ipswich and Milton Keynes – in the first half of FY24.
CEO Mark Carpenter was bullish on the company’s exit from the current economic difficulties, saying: ‘Motorpoint will emerge from the current depressed consumer market a more efficient business, having made progress on multiple key strategic initiatives.
‘Over the long term we will make further investments in technology, digital development and national marketing, which will be offset to a degree by efficiencies across the business.
‘In a period when some of the group’s competitors are retreating or lacking financial capability and when current macro headwinds are forecast to continue, the board believes that there is significant opportunity to continue making targeted strategic investment to grow market share and become a highly profitable market leader.’
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