Motorpoint sees H1 profit performance boost despite continued revenue pressure
Motorpoint has continued to drive profits within the business through strong retail volume growth, despite a 7.3% drop in revenues over the six months ended September 30, 2024.
The business has posted its unaudited results for H1 where it showed a PS7 million boost in gross profit performance, despite a PS44m revenue drop year-on-year.
Mark Carpenter, Motorpoint Group chief executive (pictured), said: “I am pleased with our solid performance in the first half of FY25, which was marked by a return to profitability following several years of considerable headwinds that have impacted our industry.
“Brilliant Basics, our right sizing and margin improvement programme, delivered what it needed to in FY24, ensuring foundations for future growth.
“As well as strong year on year volume growth and market outperformance, margins strengthened, and stock turn improved to an industry-leading 41 days in stock. Carpenter “
Motorpoint recently opened its 21st centre in Norwich, following on from the company’s opening of its Ipswich car showroom in May 2023.
Motorpoint referenced the the landmark High Court rulings on 25 October 2024 that a broker could not lawfully receive a commission from a lender without the customer’s fully informed consent, but said that after a 10 day period where the business “explored its options” it returned to its pre-existing agreement with its primary finance provider on November 8.
It said its position on commission disclosure is “robust” and it doesn’t expect to see any material impact on its full year profit expectations as a result of the situation around finance regulation.
