Motorpoint has made a remarkable turnaround, achieving a pretax profit of £2m after last year’s losses.
- The improvement is attributed to easing macroeconomic pressures and increased customer demand.
- Used car prices remained stable, aiding profitability despite challenges in vehicle supply.
- Motorpoint’s retail volume surged by 17% in the first six months, setting a positive trend.
- Shares rose by 40%, highlighting investor confidence in the company’s strategy.
Motorpoint has successfully shifted back into profitability, reporting a pretax profit of around £2m in the recent six-month period. This marks a significant recovery from the pretax loss of £3.7m recorded in the same timeframe last year. The company cites an environment of eased macroeconomic conditions and a revival in customer demand as primary contributors to this turnaround.
The used car market’s stability in prices and margins, despite certain challenges like a subdued supply of vehicles, has played a crucial role in this financial achievement. Motorpoint has reported a 17% increase in retail volume in the first half of the fiscal year, with strong momentum expected to persist moving forward.
The company’s strategic approach to adapt and ‘right size’ their operations has proven effective, even as the sector continues to face supply chain issues. Encouragingly, Motorpoint has welcomed recent interest rate cuts, suggesting that further reductions could enhance profitability.
Reflecting growing investor confidence, Motorpoint’s shares have soared by nearly 40% this year. CEO Mark Carpenter expressed confidence in the company’s resilience, highlighting the robust business model and the solid performance in the first half of the year as a solid foundation for accelerated growth.
Motorpoint is poised to announce its interim results on 27 November, with anticipation of continued success in the upcoming quarters.
Motorpoint’s strategic adaptations and favourable market conditions have underpinned its financial recovery, showcasing resilience and optimism for future growth.
