MOTORPOINT today said it expected to report revenue growth of about one per cent when it publishes its interim results next month.
In its half-year trading update and notice of results, the independent vehicle retailer said the rise for the half-year to September 30 2019 – against the same period last year – was ‘a significant outperformance of the nearly-new car market’, representing ‘a material increase in market share’.
The group pointed to ‘unusually high pressure on car margins over the early summer months’ that had now eased off, adding that the car supermarket’s gross margin for the first half was ‘expected to be broadly in line with the prior year’, while overheads for the period will be some £2m above the same period in 2018, although half of it was said to be non-recurring.
In its outlook, the board said it was continuing to keep a close eye on consumer confidence because of the ‘ongoing economic and political uncertainty’ but was confident that its recent trading performance and strong current stock profile had left Motorpoint in a good position to carry on increasing its market share while looking at possibly opening new sites.
‘As a result, the board remains comfortable with its full-year expectations,’ it said, adding that it was launching a new share buyback programme of up to £10m that reflected its ‘continued strong cash generation’.
Motorpoint will publish its half-year results on November 28.