Motorpoint profits rise but outlook cautious
Motorpoint reported a jump in interim revenue and profit on Thursday as it struck a rather cautious note on its outlook.
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Motorpoint Group
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16:40 24/04/24
In the six months to 30 September, pre-tax profit rose 22.7% to £11.9m on revenue of £528.6m, up 9.4% on the same period a year ago. Adjusted earnings per share ticked up 11.6% to 9.6p and the interim dividend was lifted by 25% to 2.5p a share.
The vehicle retailer said it saw record levels of repeat customers, increasing to 29.5% of total customers from 25.1% in FY18.
Chief executive officer Mark Carpenter said: "In spite of the challenging market backdrop, our value-orientated, customer-friendly proposition combined with the strength of our people and quality of our multi-channel offering, has enabled us to grow and to welcome record levels of repeat customers through our doors.
"In line with our site opening strategy we are in advanced discussions on several premises, we expect to be able to announce contractual completion for at least one of these in the near future. We are also excited about the opening of our new preparation centre in Peterborough, expected early in the new calendar year, which will increase the efficiency of the group's operations and maximise retail space at our neighbouring sites in Peterborough and Chingford."
The group said current trading is consistent with market expectations for the full year. However, it remains "mindful" of political uncertainty and pointed out that its fourth financial quarter is the most material of its full-year performance.
Numis, which rates the stock at 'buy', said the results are "solid" and in line with its forecasts.
"While the outlook statement is understandably cautious given the macro uncertainty, we leave our FY19 profit before tax estimate unchanged and continue to believe Motorpoint should, over the medium term, deliver premium earnings growth and cash generation. On 11x FY19 PE, we remain positive."
At 1100 GMT, the shares were down 0.7% to 216p.