Motorpoint confirms return to profitability as retail volumes surge

Motorpoint has swung again to profitability, buoyed by a close to 14% improve in retail car gross sales and sharper operational execution.

The used automobile grocery store specialist indicated earlier this yr that its Sensible Fundamentals operational effectivity plans would convey it again to profitability, after some difficult years for the enterprise.

The group posted a £4.1 million revenue earlier than tax, a big turnaround from a £10.4 million loss the earlier yr.

This restoration was fuelled by sturdy retail momentum, with 59,900 automobiles bought, up from 52,600 in FY24, and a data-led method to pricing and inventory administration.

Gross revenue rose 24% to £90.8 million, reflecting each larger volumes and improved margins.

Retail gross revenue per unit climbed by £113 to £1,335, whereas wholesale margins additionally strengthened.

Income elevated 8% to £1.17 billion, aided by constant demand throughout each retail and wholesale channels.

Motorpoint additionally gained market share within the 0–6-year-old automobile phase, which rose to 2.37% over the yr and peaked at 2.46% within the closing quarter.

Regardless of excessive rates of interest persevering with to affect finance penetration, the enterprise stated it benefited from tight value management, together with vitality and card price financial savings.

The corporate had beforehand paused its plans to open new places because it went via its operational evaluate, however was capable of push forward with plans to open its new Norwich location on the finish of final yr.

Rightsizing the enterprise and bettering margin efficiency

Mark Carpenter, Motorpoint Group chief government, stated: “I’m extraordinarily happy with our efficiency in FY25.

“Motorpoint has skilled a number of years of appreciable financial headwinds which have hampered our trade.

“We responded in FY24 with our Sensible Fundamentals programme which rightsized the enterprise and improved margin efficiency.

“This efficiently laid the foundations for development and in FY25 resulted in double digit yr on yr quantity development, vital good points in market share, quicker inventory flip, and a welcome return to profitability.

“I’m additionally delighted that our buyer NPS improved via the yr, reaching file ranges within the closing quarter, and that we have now been recognised as one of many Sunday Occasions’ greatest massive locations to work.”

Carpenter stated current falls in rates of interest are welcome, though they continue to be “relativley excessive”, whereas provide of used inventory continues to slowly enhance, with extra bulk offers out there for newer inventory.

He added: “We stay cautious whereas situations for the patron stay unsure however are effectively positioned to proceed to develop profitably and outperform the market.

“This may permit us to proceed to spend money on our strategic goals, and speed up exercise over time as situations permit, along with returning extra capital to shareholders.”