AGM Trading Update

RNS Number : 8890T

Motorpoint Group plc

27 July 2022

 

27 July 2022

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 John Walden, Chair 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 (Q1) of the financial year ending 31 March 2023:

Revenue

Revenue in Q1 FY23 was c.£402m, up c.30% on Q1 FY22, with this strong growth supported by vehicle price inflation. Whilst we believe that we continue to outperform the market, volumes in April and May 2022 were down against the previous year, when we enjoyed strong demand following branch re-openings. We returned to positive year on year volume growth in June 2022, and this continues into July.

Customer service remains at the forefront of what we do and the Board is pleased that the Group's Net Promoter Score remained at a record 84 in Q1.

Gross Margins

Gross margins in Q1 are down against the record levels in the previous year when vehicle appreciation significantly inflated margins, and are more in line with the second half of FY22. Notwithstanding wider interest rate rises, we are pleased to be able to continue to hold our finance APR at 8.9%, albeit since the beginning of July 2022 we have received lower commission from the finance providers to fund this. Our customer proposition is central to everything we do at Motorpoint and we are pleased to be helping keep costs down for our customers while simultaneously reinforcing our price leadership market position.

Strategy Update

We are confident that this is the right time to push ahead on our strategic objectives and their associated investments and are pleased to announce that we have secured a further new branch in Coventry.  This will be opened later in 2022, in addition to the already announced locations in Edinburgh and Milton Keynes. We remain encouraged by the pipeline of opportunities to expand our portfolio and thus increase market share.  We will continue to invest in our customer proposition to gain market share in a relatively weakened competitive landscape.

Outlook

As part of our recent Final Results announcement on 15 June 2022, we highlighted that the impacts of rising inflation and worldwide vehicle supply chain challenges were likely to continue to affect our markets, and this remains the case. Despite the ongoing uncertainty, we will continue to invest with the consumer front of mind, in order to drive our strategy of significantly increasing our market share through price leadership, whilst continuing to deliver appropriate levels of profitability.  

Enquiries:

Motorpoint Group PLC Mark Carpenter, Chief Executive Officer Chris Morgan, Chief Financial Officer	via FTI Consulting
FTI Consulting (Financial PR) Alex Beagley Sam Macpherson Harriet Jackson Amy Goldup	020 3727 1000

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 17 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 choice, value, service and quality for customers. The Group is proud to have been recognised for eight consecutive years as one of the Top 100 Best Companies to Work For and for the second consecutive year the Number One in the Automotive sector.

 

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