Motorpoint: Used car supermarket returns to profitability after ‘most difficult year’ in its history
Motorpoint has returned to profitability thanks to easing macroeconomic headwinds and a recovery in customer demand.
The used car supermarket expects to deliver a pretax profit of around £2m in the six months to September, compared to a pretax loss of £3.7m in the same period last year.
It reported retail volume growth of 17 per cent in the first half with “strong momentum” going into the next six months.
“As macroeconomic headwinds eased in H1 FY25, used car prices and margins remained broadly stable and customer sentiment improved,” the firm said in a statement.
The firm welcomed August’s interest rate cut and suggested that further cuts would aid profitability.
Headwinds remain, with the supply of used vehicles still “subdued”. But the firm said that its efforts to “right size” the business, alongside recovering demand, had resulted in a return to profitability.
Its shares are up nearly 40 per cent this year.
Last year the firm suffered the “most difficult year” in its history due to a combination of broader economic headwinds and sector-specific issues. It reported a £10.4m loss in the year-to-March.
Mark Carptenter, Motorpoint’s boss, said the results proved “the resilience of the Motorpoint business model…one again.”
“This solid performance in the first half of the year stands us in good stead as we look to progress our strategy to accelerate growth,” he added.
The firm will announce its interim results on 27 November.