12th Jun 2025 10:10
(Alliance News) - Motorpoint Group PLC on Thursday said it would reintroduce a dividend as it swung to a profit and said positive momentum has continued in the new financial year.
The Derby, England-based car retailer said revenue increased 8.0% to GBP1.17 billion in the 12 months to the end of March from GBP1.09 billion a year prior.
Motorpoint swung to a pretax profit of GBP4.1 million from a GBP10.4 million loss a year ago.
It said the return to profitability was driven by "strong growth" in retail volumes with 59,900 retail vehicles sold, up 14% from 52,600 in financial 2024.
The improved profit was also helped by greater use of data-led analytics and improved stock management, it added.
Operating expenses fell 3.1% to GBP78.1 million from GBP80.6 million.
Motorpoint proposed the reintroduction of a 1.0 pence final dividend. It expects to follow a "progressive dividend policy" going forward, depending on capital allocation priorities.
Interest rates remained high and continued to impact finance penetration rates, Motorpoint noted.
"Motorpoint has experienced several years of considerable economic headwinds that have hampered our industry. We responded in [financial 2024] with our Brilliant Basics programme which rightsized the business and improved margin performance. This successfully laid the foundations for growth and in [financial 2025] resulted in double-digit year-on-year volume growth, significant gains in market share, faster stock turn, and a welcome return to profitability," said Chief Executive Officer Mark Carpenter.
The positive momentum has continued into the 2026 financial year, with retail volume growth against April and May, against tougher prior year comparatives.
Profitability has also increased on the previous year.
Motorpoint added that it expects ongoing macroeconomic pressures to ease over the course of the year, with further moderate reductions in interest rates. However, it said it is mindful that near-term consumer confidence remains uncertain.
The company said the supply of nearly new used vehicles should continue to slowly increase across the year.
CEO Carpenter said: "Recent falls in interest rates are welcome, although they remain relatively high, and supply continues to slowly improve, with more bulk deals available of newer stock. We remain cautious while conditions for the consumer remain uncertain but are well placed to continue to grow profitably and outperform the market. This will allow us to continue to invest in our strategic objectives, and accelerate activity over time as conditions allow, in addition to returning excess capital to shareholders."
Shares in Motorpoint were down 0.3% at 162.00 pence in London on Thursday morning.
By Michael Hennessey, Alliance News reporter
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