Motorpoint has swung again to profitability, buoyed by a close to 14% enhance in retail car gross sales and sharper operational execution.
The used automobile grocery store specialist indicated earlier this 12 months that its Sensible Fundamentals operational effectivity plans would carry it again to profitability, after some difficult years for the enterprise.
The group posted a £4.1 million revenue earlier than tax, a major turnaround from a £10.4 million loss the earlier 12 months.
This restoration was fuelled by sturdy retail momentum, with 59,900 autos offered, up from 52,600 in FY24, and a data-led strategy to pricing and inventory administration.
Gross revenue rose 24% to £90.8 million, reflecting each increased 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 12 months and peaked at 2.46% within the closing quarter.
Regardless of excessive rates of interest persevering with to affect finance penetration, the enterprise mentioned it benefited from tight price management, together with power and card charge financial savings.
The corporate had beforehand paused its plans to open new places because it went via its operational evaluate, however was in a position to push forward with plans to open its new Norwich location on the finish of final 12 months.
Rightsizing the enterprise and bettering margin efficiency
Mark Carpenter, Motorpoint Group chief government, mentioned: “I’m extraordinarily happy with our efficiency in FY25.
“Motorpoint has skilled a number of years of appreciable financial headwinds which have hampered our business.
“We responded in FY24 with our Sensible Fundamentals programme which rightsized the enterprise and improved margin efficiency.
“This efficiently laid the foundations for progress and in FY25 resulted in double digit 12 months on 12 months quantity progress, important positive factors in market share, sooner inventory flip, and a welcome return to profitability.
“I’m additionally delighted that our buyer NPS improved via the 12 months, reaching report ranges within the closing quarter, and that now we have been recognised as one of many Sunday Instances’ greatest large locations to work.”
Carpenter mentioned latest 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 circumstances for the buyer stay unsure however are effectively positioned to proceed to develop profitably and outperform the market.
“It will permit us to proceed to spend money on our strategic targets, and speed up exercise over time as circumstances permit, along with returning extra capital to shareholders.”
