AGM Trading Update

RNS Number : 5170G

Motorpoint Group plc

27 July 2021

 

27 July 2021

Motorpoint Group PLC

("Motorpoint" or the "Group")

AGM Trading Update

Motorpoint Group PLC, the UK's leading independent omnichannel vehicle retailer, is pleased to announce that Mark Morris, Chairman of Motorpoint, will make the following statement at the Company's Annual General Meeting, to be held at 10:00am BST today, which is an update on trading for the first quarter of the financial year ending 31 March 2022:

The Group enjoyed record sales in the first two months of the financial year, both online and in branch, significantly ahead of the same period in FY20 (which represents a more meaningful comparative than FY21). A reduced supply of vehicles, driven by the fall in new car production, has contributed to a moderation of revenues during June, and into July. However, throughout the first quarter, gross profit margins remained strong due to appreciation of vehicle values, and trading is in line with the Board's expectations for the full year.

Following the announcement of the Group's updated strategic goals in the Final Results on 16 June 2021, good progress continues to be made with 61% of vehicles sold online in Q1. Volumes on Auction4Cars.com, our purely online wholesale platform, were significantly ahead of FY20, with record margins.  The Group has continued to increase its investment in technology and marketing, in particular growing the strength and expertise of the technology team as well as building lasting partnerships with technology suppliers. The Motorpoint car buying service, purchasing vehicles direct from consumers, was successfully launched on 6 July 2021 and this will be an important enabler to increase the supply of retail vehicles and the volume of transactions on Auction4Cars.com.

Another of our strategic goals is to accelerate the opening of branches in new markets and we have made strong progress, securing new branches in Manchester, which will open in the Autumn, and Maidstone, which will open later in the year.  Several more branches are under negotiation and are expected to be acquired during 2021.

Customer service remains at the forefront of what we do and the Board was pleased that the Group's Net Promoter Score further increased to a record 84 in June (FY21 H2: 83).

It is important to note that some uncertainty persists given the well documented vehicle supply shortage, the potential continued disruption from COVID-19, and a realignment of used vehicle margins.  However, progress on the Group's strategic goals means it is well placed to deal with any potential headwinds and the Board continues to look to the future with confidence, as the Group continues its exciting transformation into an E-commerce led business with huge potential.

Enquiries:

Motorpoint Group PLC Mark Carpenter, Chief Executive Officer Chris Morgan, Chief Financial Officer	via FTI Consulting
FTI Consulting (Financial PR) Alex Beagley James Styles Sam Macpherson	020 3727 1000 [e-mail];

Notes to editors

Motorpoint is the UK's leading independent E-commerce led omnichannel vehicle retailer, focused on giving retail and trade customers the easiest, most affordable and seamless way of buying, selling and financing their car whether online, in-store or a combination of both. Through its leading B2C platform Motorpoint.co.uk and UK network of 14 sales and collection branches, the Group provides an unrivalled offering in the nearly new car market, where consumers can effortlessly browse, buy or finance their next car and collect or have it delivered directly to their homes. Motorpoint's purely online wholesale platform Auction4Cars.com sells vehicles into the wholesale B2B market that have been part exchanged by retail customers, or purchased directly from them by the Group as part of its online car buying service. Motorpoint's diversified business model, underpinned by its established brand, industry leading technology and sophisticated marketing infrastructure, always delivers the best value, choice, quality and service for customers. The Group is proud to have been recognised for seven consecutive years as one of the Sunday Times' Top 100 Best Companies to Work For.

 

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