Motorpoint Group, an independent used car supermarket specialist, has revealed a positive performance improvement for the fourth quarter of 2023 and the first quarter of this year following what it called “difficult conditions” in the previous year.
The trading performance update, issued ahead of its final results, highlighted a 9% year-on-year increase in quarterly retail volumes and a profitable first quarter for 2024.
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While Motorpoint anticipates a loss before tax for the full year, it expects it to be “at the favourable end of management expectations.” The company had previously forecasted 2024 profits to decline by up to £6 million due to a significant drop in used car prices.
Motorpoint CEO Mark Carpenter underlined the company’s robust financial position, noting no structural debt and £9 million in cash as of March 31, 2024.
The improvement in used car margins during Q4 was attributed to increased stock turnover and the sale of inventory affected by the abrupt correction in used car values witnessed in Q3.
In its update statement, Motorpoint highlighted a resurgence in consumer demand and emphasised the success of its digital offerings, resulting in strong website traffic.
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By GlobalDataCarpenter expressed satisfaction with the easing of challenging conditions in Q4. He outlined growth plans, increased stock turnover, and improved margins, anticipating continued progress into FY25 as supply improves following recent growth in new car registrations.
Despite last year’s challenges, including costs related to redundancies as part of its FY24’s ‘rightsising programme,’ Carpenter said Motorpoint remains optimistic about future growth opportunities in FY25.
On its website, Motorpoint describes itself as an omnichannel retailer of 0-5 year nearly new vehicles driven under 50,000 miles. The business is headquartered in Derby, UK.
