3rd Apr 2025 12:41
(Alliance News) - Motorpoint Group PLC on Thursday said it expects to return to profit for its recently ended financial year, boosted by strong retail volume growth, and announced a further GBP4 million share buyback programme.
Shares in Motorpoint were up 1.2% at 128.04 pence in London on Thursday.
The Derby, England-based car retailer said it expects pretax profit between GBP4.0 million and GBP4.3 million for the financial year ended March 31, swinging from a GBP10.4 million loss the year before. It also expects earnings before interest and tax of between GBP13.3 million and GBP13.6 million, compared to a loss of GBP600,000 in financial 2024.
Retail volumes for the year rose 14%, with growth moderating slightly in the fourth quarter due to "tougher" comparatives and a "subdued consumer backdrop". For the 12 months to December 31, Motorpoint said retail sales volumes in the 0 to 6 year used car category grew by 15%, outperforming the broader market's 2.8% growth.
Motorpoint also said positive momentum continued into the second half of the year, helped by stable margins and growing digital engagement. The firm noted that high interest rates continue to impact finance commissions and stock funding costs.
Chief Executive Officer Mark Carpenter said: "Having returned to profitability in the first half of FY25, I am very pleased with our performance across the full year, delivering profitable growth and significantly outperforming the wider used car market."
The group also announced a new share buyback programme of up to 3 million shares, representing around 3.5% of its issued share capital, with a maximum total value of around GBP4 million. It follows the completion of a GBP5 million buyback last year.
Motorpoint said it retains a strong balance sheet with no structural debt and around GBP6 million in cash as of March 31, despite high vehicle purchasing activity in the final month of the year. It said it remains well stocked heading into financial 2026 and continues to explore further store openings after the launch of its 21st store in Norwich in December.
By Eva Castanedo, Alliance News reporter
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