Motorpoint has announced results for the six months ended 30 September 2016, with profits down 32% to £7.0m on revenues that increased by 11.5% to £408.9m.
The group incurred exceptional costs relating to IPO expenses during the 6 month period under review of £4.0m, however the 32% decline in operating profits does not include this one off hit. The firm’s profit before taxation and after exceptional items was just £2.4m, compared to £10.2m in the same period of the previous financial year.
Mark Carpenter, Chief Executive Officer of Motorpoint Group plc commented: “The uncertainty around the result of the EU referendum contributed to the Group’s disappointing performance in the first half; however we managed stock levels carefully thereby maintaining our industry leading stock turn despite the short term impact on margins. Whilst some uncertainty around Brexit remains, the three new sites that we have opened in the last 12 months are performing well and we anticipate they will deliver a solid performance in the second half.
“Despite the softening in consumer confidence, market conditions since the period end have remained stable with a good level of stock availability and margins have returned to normal levels. We continue to invest in opening new sites, and we have recently acquired a leasehold site in Sheffield which will open in Spring 2017. The Group’s differentiated proposition, strong employee and customer focus and industry leading scale leave us well positioned to deliver a full year performance in line with expectations. I feel that the Company’s dedication to offering choice, value and service will ensure that Motorpoint remains the Car Buyers’ Champion.”
Motorpoint operates from 11 retail sites across the United Kingdom; Derby, Burnley, Glasgow, Newport, Peterborough, Chingford, Birmingham, Widnes, Birtley, Castleford and Oldbury, of which six have opened in the last five years; together with a national contact-centre dealing with online enquiries.
