28th Nov 2019 10:58
(Alliance News) - Motorpoint Group PLC on Thursday said profit declined in the first half of its financial year, suffering from a rise in cost overheads.
For the six months ended September 30, the vehicle retailer posted a pretax profit of GBP9.4 million, 18% lower than its GBP11.5 million profit the year before.
Chief Executive Mark Carpenter explained the fall, saying: "Group profit was impacted by increased overheads, which were approximately GBP2 million higher than the comparable period last year. Half of this increase will be non-recurring following process changes implemented in the period."
Despite a slight revenue rise of 1.0% to GBP533.9 million from GBP528.6 million, cost of sales rose to GBP493.7 million from GBP488.1 million, meaning gross profit actually dropped fractionally to GBP40.2 million from GBP40.5 million. On top of which, operating expenses rose 6.2% to GBP29.1 million from GBP27.4 million.
Motorpoint declared a 2.6 pence per share dividend, 4.0% higher than the prior year's 2.5p per share dividend.
Looking ahead, the company is planning to open a new five-acre site in Swansea in the fourth quarter of its financial year ending march 2020.
Carpenter commented: "Current trading is consistent with achieving management's full year expectations, albeit with a greater weighting towards H2, however potential outcomes from the Government's Brexit negotiations could influence our future performance in unpredictable ways.
"We believe our unrivalled choice of nearly new vehicles and ongoing dedication to choice, value and service positions us strongly to take advantage of any market disruption, as has been evidenced in the period by our growing market share."
Shares in Motorpoint were up 0.8% at 258.00p in London on Thursday morning.
It was separately announced that founder David Shelton will retire as a non-executive director at the end of December. He stepped down as an executive director in March 2018.
By Anna Farley; [email protected]
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