8th Oct 2024 20:42
(Alliance News) - Motorpoint Group PLC on Tuesday said used car prices and margins remained broadly stable in the first half of financial 2025 as macro economic headwinds eased.
As a result, the car retailer expects a return to first-half profit in the six months ended September.
In response, shares in Motorpoint closed 4.6% higher at 160.00 pence each in London on Tuesday.
Motorpoint expects financial first half pretax profit of GBP2.0 million, swinging from a loss of GBP3.7 million. The prior year figure excludes exceptional items, of which there were none this time around. The improved performance reflects strong retail volume growth of 17% on-year.
"As macroeconomic headwinds eased in the first half, used car prices and margins remained broadly stable and customer sentiment improved. The first reduction of interest rates in August was encouraging and future cuts should further aid profitability," the company said.
The supply of used vehicles remains subdued, particularly at the newer end of the market, the company cautioned.
Nonetheless, Motorpoint said increased customer demand, coupled with the successful execution of its Brilliant Basics programme has resulted in a return to profitability and "provides the board with confidence."
Chief Executive Officer Mark Carpenter said the "solid performance in the first half of the year stands us in good stead as we look to progress our strategy to accelerate growth."
Motorpoint said days in stock improved to 41 days from 47 a year ago and that it had strong momentum going into the second half.
It said it had completed the share buyback while its 21st store is expected to open in Norwich in the second half.
The group expects to announce its interim results on November 27.
By Jeremy Cutler, Alliance News reporter
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