23rd Nov 2023 11:56
(Alliance News) - Motorpoint Group PLC on Thursday reported a weaker set of interim results as it swung to a loss and saw its revenue drop.
The Derby, England-based automotive retailer swung to a pretax loss of GBP4.7 million in the six months to September 30 from a GBP3.0 million profit a year prior, as revenue plunged by 23% to GBP607.2 million from GBP786.7 million the year before.
The decline in revenue was reflected by an 18% reduction in retail volumes, while wholesale volumes fell by 22%.
"The impact of high inflation, interest rates, and consumer uncertainty continues to affect demand for used cars. This is impacting the value of used cars, which has fallen since the end of the period, with a reduction in wholesale values of circa 6% in just the last six weeks," the company explained.
Looking ahead, Motorpoint pointed to a gloomy outlook, saying that the current environment is "likely to be volatile as new car supply into the used car market begins to increase".
Chief Executive Officer Mark Carpenter said: "The rapid fall in used car values since the period end is unquestionably a near term challenge, however it also provides reassuring signs of supply finally beginning to improve in the nearly new market that we have dominated in the past. I believe next year will be a key turning point for the market and I look to the future with confidence."
Shares in Motorpoint fell 4.4% at 74.00 pence each in London on Thursday around midday.
By Sabrina Penty, Alliance News reporter
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