The Motorpoint used car supermarket group has revealed record revenues totalling £1.44 billion from its 2022 financial year in a trading update published this morning (April 6).
Motorpoint said that its performance had been boosted by its vehicle stock mix and price inflation, but it also swelled its physical footprint from 16 to 20 car retail locations during the 12-month period to March 31.
The car retail PLC’s most recent property development in the period came on the form of its new Ipswich car supermarket last month.
Despite 2022’s 9% growth in turnover, which takes it closer to its mid-term goal of generating annual sales of £2bn, Motorpoint said its profit before tax was expected to be “broadly break even”, however.
Chief executive Mark Carpenter was positive about the business’s progress and trajectory, however. He said: “Whilst the impact of higher interest rates and inflation will continue into FY24, new car registrations rose 18% in March, with the fleet market driving this eighth consecutive month of growth, which will in turn benefit used vehicle supply.
“This, coupled with continued market share gains and progress on our key initiatives, will enable Motorpoint to emerge from the current environment a highly profitable market leader.”
Motorpoint reported a market share in the 0 to four-year-old used car market up 3.5% in the 12 months to December 2022.
And, despite a flurry of new site openings it said that its balance sheet remained strong with over £5m cash at year end, and “significant borrowing headroom”.
It had started the trading period with the £5 million sale of the used car supermarket group’s Stockton site, a move which Carpenter said would provide the business with “further firepower” for growth.
The business also announced that I t had followed its recent appointment of Kal Singh, a former executive of the Dreams retailer, as its new chief operating officer, with the recruitment of a new chief technology officer.
Appointed in March, Tom Tang has over 20 years of experience in technology leadership and has led technology organisations with his recent roles as CIO, Alliant Energy, CTO – customer experience at Sainsbury’s and CIO of Argos.
Motorpoint said that Tang was an advocate of the benefits of AI capabilities which benefit the customer and employee, advancing the goals of the business.
The group is targeting over £1bn in e-commerce sales alongside its plans to lower its cost base, create a stronger brand and improve customer experience as part of its strategic plan.