Q3 Trading Update

RNS Number : 0294O

Motorpoint Group plc

27 January 2023

 

27 January 2023

Motorpoint Group PLC

("Motorpoint" "Company" or the "Group")

Q3 Trading Update

Motorpoint Group PLC, the UK's leading independent omnichannel vehicle retailer, provides an update on its trading performance for the nine months ended 31 December 2022 (YTD).

Q3 FY23 Highlights:

· Revenue of £1,064m, up 17%  helped by vehicle mix and price inflation

· Return to year-on-year retail volume growth in December and into January

· Gross profit per unit below expectations due to higher financing costs and falling value of electric vehicles

· Two further store openings (at Ipswich and Milton Keynes) are planned in first half of FY24

· Net Promoter Score remained at an industry leading 84

Strategy Update

Notwithstanding the difficult current environment, the Group has continued to make strong progress on its targeted strategic investments in FY23 in order to meet the medium-term growth objectives outlined in June 2021 - over £1 billion in e-commerce sales and over £2 billion in total sales - and to better position the Company for the long-term with a lower cost base, a stronger brand, and improved customer experiences. YTD, we have invested an incremental c.£5m compared to the equivalent FY22 period to grow market share, investing in our growing digital and technology capability, and our roll out of more stores in new catchment areas. Including the two new planned stores noted above, seven in total will have opened since the strategy was announced in June 2021 and more are in the pipeline as we continue to grow share by investing in new market areas.

Profitability

Macroeconomic conditions continue to promote consumer uncertainty, thereby reducing used car demand.  Although the Company does not provide specific profit guidance, recent reductions in finance commissions and lower gross margin, largely due to the well documented fall in electric vehicle values will negatively impact profitability and the Board believes these macro factors will continue to impact sales and profitability for the foreseeable future. As stated in our Interim Results, the Group will continue to invest in its strategy prudently and expects to remain profitable for the full year.

Mark Carpenter, Chief Executive Officer of Motorpoint Group PLC commented:

"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.

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	020 3727 1000

Inside information:     This announcement contains inside information as defined in Article 7 of the retained EU law version of the Market Abuse Regulation No 596/2014 ("UK MAR") and has been announced in accordance with the Company's obligations under Article 17 of UK MAR.

Forward looking statements:     The information in this release is based on management information. This announcement includes statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Company undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date of this announcement.

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 19 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.

 

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