13th Jun 2024 12:20
(Alliance News) - Motorpoint Group PLC said it is confident in its ability to scale profitability but noted that the financial year just gone was the most difficult in company history.
The Derby, England-based automotive retailer said pretax loss widened sharply to GBP10.4 million in the financial year that ended March 31, from just GBP300,000 the year before, as revenue fell 25% to GBP1.09 billion from GBP1.44 billion.
Net cash as at March 31 rose 64% to GBP9.2 million from GBP5.6 million a year prior.
Motorpoint said the fall in annual revenue was "influenced by market headwinds, stock mix and vehicle price deflation," while retail volumes declined 8.2%. It noted however that retail sales recovered 8.9% from a year before in the final quarter of financial 2024.
Chief Executive Officer Mark Carpenter said: "The past financial year was the most difficult in our history, with multiple negative headwinds in the macro environment such as rising borrowing costs and subdued customer demand, coupled with industry specific issues such as lower inventory and deflation."
Looking ahead, Motorpoint said it made a "positive start" to financial 2025, noting that both April and May were profitable.
CEO Carpenter added: "Following the rightsizing exercise of FY24, we now have a lean, technology-enabled business. I am very confident in our ability to scale profitability and cash generation as the market improves, which will allow us to invest further in growth."
Motorpoint shares were down 2.5% to 138.96 pence each on late Thursday morning in London.
By Tom Budszus, Alliance News slot editor
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