Motorpoint today (Oct 7) said its pre-tax profit for the six months to September 30 grew by more than 30 per cent to over £13m versus the same period last year.
In a half-year trading update issued via the London Stock Exchange, the used car supermarket chain said the upswing had come about despite investing heavily in infrastructure and talent during its digital transformation journey
Gross profit went up by about 58 per cent, while revenue rose by approximately 57 per cent, thanks to strong demand for vehicles.
Online retail sales increased by about 53 per cent.
The announcement follows industry rumours that online used car dealer Cinch is circling to snap up Motorpoint in a £500m deal to take it off the stock market and make it a private concern.
In the update, Motorpoint highlighted the fact that during the second quarter of April to June, it massively outperformed the SMMT’s report of 109 per cent market growth, achieving 242 per cent.
A downturn in supply of used cars led to it expanding its vehicle offering from under three years old to between three and four years, which saw it soon gain a 1.4 per cent market share, it said.
Revenue from its Auction4Cars.com division went up by circa 38 per cent compared with last year, in spite of the group selling more vehicles through its retail sales channel instead of feeding them on to the Auction4Cars.com platform.
Its car-buying service, which sees it buy vehicles directly from the public, was successfully launched on July 6, it said, and was increasing vehicle supply and the volume of transactions via Auction4Cars.com, with 12.5 per cent of retail vehicles sold being sourced from consumers during the six months – up from 7.6 per cent last year.
The listed group said its new branch in Manchester opened successfully on October 1, following the new preparation centre in Motherwell in August.
As well as a Maidstone branch, it has also secured a site in Milton Keynes, with more under negotiation.
Motorpoint expects to release its half-year results – when other and exact figures will be given – on Thursday, November 25.
Chief executive Mark Carpenter said: ‘Since fully reopening in April, our omnichannel proposition has excelled, providing the whole used vehicle market with our renowned choice, value, service and quality.
‘With record revenues, employee engagement and customer service across the group, Motorpoint continues to be the leading independent used vehicle retailer in the UK.
‘Our business continues to be agile and agnostic – qualities that allow us to take advantage of strategic opportunities – and our transition to e-commerce is just one example of this.
‘We are firmly fixed on significant growth targets, and the investments made to date in technology and marketing will continue to grow to realise our goal of doubling revenues in the medium term.’