12th Jun 2018 09:36
LONDON (Alliance News) - Motorpoint Group PLC hiked its dividend 57% on Tuesday after profit jumped on strong revenue growth, as the car retailer said it remains confident for future growth despite a challenging market.
For the financial year that ended March, pretax profit jumped 71% to GBP20.0 million from GBP11.7 million the year prior. This is after revenue rose 21% to GBP991.2 million from GBP822.0 million the year before.
Motorpoint proposed a 4.6 pence per share final dividend, up 59% from 2.9p the year prior. For the full year, the dividend rose 57% to 6.6p from 4.2p the year before.
In late November, Motorpoint opened a GBP10.0 million share buyback programme. The company began buying shares in March and this continues.
"The group has delivered a strong performance over the year and I am pleased with the progress we continue to make as a business," Motorpoint Chief Executive Officer Mark Carpenter said. "With our 12th site in Sheffield having opened in the year, we remain focused on the geographic expansion of our compelling, value oriented proposition and winning further market share."
Motorpoint emphasised it was receiving "record" levels of repeat custom. 26.2% of total customers are returning customers, in contrast to 25.0% the year prior.
"Whilst we are mindful of the wider economic and political climate," Carpenter added, "thanks to our differentiated business model, we are well positioned to continue to grow and are confident about our prospects for the year ahead."
Shares in Motorpoint were 5.2% lower at 247.50 pence on Tuesday.
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