Motorpoint ends year in line amid global supply challenges

Motorpoint Group said in a trading update on Wednesday that it was expecting to report revenues of £1.32bn for the financial year just ended - up 82% year-on-year - with profits in line with forecasts.

The London-listed independent vehicle retailer said the number of retail units grew 45% year-on-year in the 12 months ended 31 March, despite a “well-documented” reduced supply of vehicles during the period.

Wholesale units at its Auction4Cars division, meanwhile, grew by 35%.

Motorpoint said it continued to grow its market share, reporting that in the nine months to December, its share of the up-to four-year-old vehicle market was 3%, compared to 2.6% in the prior year.

Customer satisfaction also rose, with the firm’s net promoter score reaching a record 84, from 83 in the second half of the 2021 financial year.

As planned, strategic capital and operating costs increased in the period as Motorpoint further invested in future growth, with a priority on technology and marketing.

Notwithstanding those investments, the group said it expected to report operating profit and profit before tax in line with its own expectations.

Looking ahead, Motorpoint said the impact of rising inflation and global vehicle supply challenges was likely to affect markets and its performance, although predicting the extent of those impacts was difficult in the short-term.

However, the board said it anticipated rising inflation would place further pressure on discretionary spending power and consumer sentiment.

In such an uncertain environment, the company said it would invest in revenue and market share growth, in strategic future capabilities, and in providing an “exceptional” omnichannel customer experience.

“Despite the uncertain consumer outlook, the group's continuing confidence allows it to invest in its future growth strategies across multiple initiatives,” said chief executive officer Mark Carpenter.

“The expansion of our technology team dramatically increases our capability to innovate and scale our Motorpoint and Auction4Cars platforms which both have huge future growth potential.”

Carpenter said Motorpoint, as “the UK's largest independent omnichannel vehicle retailer”, had a value-based proposition that still resonated with customers.

“We remain confident in our medium-term strategic objectives and are excited in our potential to grow substantially as we continue to invest in our brand, infrastructure and technology.”

At 0917 BST, shares in Motorpoint Group were down 1.85% at 265p.