14th Jun 2023 11:34
Motorpoint Group PLC - Derby, England-based automotive retailer - Swings to a pretax loss of GBP300,000 for the financial year that ended on March 31 from a profit of GBP21.5 million the previous year. Revenue ticks up to GBP1.44 billion from GBP1.32 billion, but Motorpoint says the swing to loss is caused by rising financing costs, limited stock availability, and the fall in the value of electric vehicles. The company also increases strategic investment to GBP6.1 million from GBP1.0 million, and finance expense rises to GBP7.1 million from GBP3.5 million the year before.
Looking ahead, Motorpoint expects to emerge in a normalised market as a leaner and more "valuable business ready to seize a significant opportunity".
Chief Executive Mark Carpenter says: "Whilst the impact of higher interest rates and inflation will continue into FY24, new car registrations have been steadily increasing, with the fleet market driving much of the growth, which will in turn benefit used vehicle supply. This, coupled with continued market share gains and progress on our key initiatives, will enable Motorpoint to emerge from the current environment in a strong position to more aggressively pursue profitable market leadership."
Current stock price: 123.00 pence each, down 1.6% on Wednesday morning in London
12-month change: down 45%
By Xindi Wei, Alliance News reporter
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