Q4 Trading Update

Motorpoint Group plc

04 April 2024

 

4 April 2024

Motorpoint Group PLC

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

Q4 Trading Update

Motorpoint Group PLC, the UK's leading independent omnichannel vehicle retailer, provides an update on its trading performance for the quarter ended 31 March 2024 ("Q4") ahead of announcing its Final Results for the year ended 31 March 2024.

Q4 Highlights:

·    Strong and profitable Q4 performance with retail volume up c.9% year on year and continued margin recovery

·    Loss Before Tax for the full year therefore anticipated to be at the favourable end of management expectations

·    Balance sheet robust with no structural debt and c.£9m of cash at 31 March 2024

·    Share buyback initiated to repurchase and cancel up to 5m shares; 220,255 repurchased as at 31 March 2024

Profitability

As anticipated in our Q3 Trading Update, the positive momentum experienced at the start of the calendar year continued through February and March, with Q4 retail volume increasing by c.9% year on year. As a consequence, January, February and March were all profitable months. Consumer demand has picked up, and we have benefitted from the numerous enhancements made to our digital presence during the past year which, among other things, is generating strong website traffic. Margins gradually improved through Q4 as we increased stock turn and sold through stock affected by the abrupt Q3 correction in used car values.

Our cost management remains tightly controlled, with savings achieved in people costs following FY24's rightsizing programme and efficiencies resulting from technology investment.

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

"I am delighted that the difficult conditions experienced in 2023 have eased in Q4 and, combined with our focus on driving operational excellence through a programme we call Brilliant Basics, has meant that Q4 was characterised by consistent profitability. We are achieving growth, increasing stock turn and improving margins, and this is expected to continue into FY25 as supply improves following recent new car registration growth. I am therefore optimistic for FY25 and look forward to Motorpoint making the most of the growth opportunities ahead."

Inside Information: This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Enquiries:

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

Forward looking statements:  The information in this release is based on management information. This report 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 report.

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 20 sales and collection stores, 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.

 

END