Trading Update and Notice of Results

RNS Number : 0620P

Motorpoint Group plc

08 October 2019

 

8 October 2019

Motorpoint Group PLC

("Motorpoint" or the "Group")

Half Year Trading Update and Notice of Results

Motorpoint Group PLC, the UK's largest independent vehicle retailer, is pleased to announce the following trading update ahead of its Interim Results for the half year ended 30 September 2019.

The Group expects to report revenue growth of circa 1% compared to the same period last year, which management believes is a significant outperformance of the nearly-new car market, and therefore represents a material increase in market share.

As has been well-documented across the sector, there was unusually high pressure on car margins over the early summer months. This pressure has now abated, and Motorpoint's gross margin for the first half is expected to be broadly in line with the prior year.   Overheads for the period are anticipated to be circa £2m higher than the comparable period last year, although half of this cost is non-recurring in nature.

Outlook

The Board continues to closely monitor consumer confidence in light of the ongoing economic and political uncertainty.  The Board remains confident that the Group's recent trading performance and strong current stock profile leaves Motorpoint well placed to continue to increase market share while management evaluate further potential new site opportunities. As a result, the Board remains comfortable with its full-year expectations. The Board is also pleased to have separately announced the launch of a new, up to £10 million, share buyback programme today which reflects the Group's continued strong cash generation.

Interim Results

The Group will publish its Interim Results for the half year ended 30 September 2019 on 28 November 2019.

Enquiries:

Motorpoint Group PLC Mark Carpenter, Chief Executive Officer James Gilmour, Chief Financial Officer	via FTI Consulting
FTI Consulting (Financial PR) Jonathon Brill Alex Beagley James Styles Sam Macpherson	020 3727 1000

Notes to editors

Motorpoint is the largest independent vehicle retailer in the United Kingdom. The Group's principal business is the sale of nearly-new vehicles, the majority of which are up to two years old and which have covered less than 15,000 miles. Motorpoint sells vehicles from brands representing over 95 per cent of new vehicle sales in the United Kingdom, with models from Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi and BMW being amongst the top sellers. The Group operates from 12 retail sites across the United Kingdom; Derby, Burnley, Glasgow, Newport, Peterborough, Chingford, Birmingham, Widnes, Birtley, Castleford, Oldbury and Sheffield of which five have opened in the last five years; together with a national contact-centre dealing with online enquiries.

More information is available at www.motorpointplc.com and www.motorpoint.co.uk.

 

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