19 October 2016
Motorpoint Group plc
("Motorpoint" or the "Group")
Half Year Trading Update
Motorpoint, the largest independent vehicle retailer in the UK, provides an update on trading for the six months to 30 September 2016.
The Group expects to report c.11% revenue growth underpinned by a positive LFL performance in the first half. Because of the uncertainty around the result of the EU referendum, management has invested in margin to protect the Group's good level of stock turn, and managed its stock levels carefully. Accordingly, the volume and margin performance in the first half is behind original management expectations.
The Group has opened three new sites in the last twelve months and although these are yet to make a positive contribution, are performing broadly to plan. Management is confident that these new sites will deliver a solid performance in the second half and beyond.
The Group's unique and flexible stock sourcing model, combined with new car registration figures from the Society of Motor Manufacturers and Traders ("SMMT"), which show continued growth in fleet registrations, provides a strong supply outlook as a significant proportion of stock is sourced from fleet companies. Early indications in H2 are also showing improving margin trends.
With an improved contribution from the new site openings, good supply and an improving margin outlook, management foresees a stronger H2 weighting with net margins moving back to more normal levels. The pipeline of potential new sites remains encouraging, and positive progress is being made on a number of options.
Motorpoint will release Interim Results for the six months to 30 September 2016 on 29 November 2016.
Motorpoint Group plc
Mark Carpenter, Chief Executive Officer
James Gilmour, Chief Financial Officer
via FTI Consulting
FTI Consulting (Financial PR)
020 3727 1000
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
Notes to editors
Motorpoint is the largest independent vehicle retailer in the United Kingdom. The Group's principal business is the sale of nearly-new vehicles, the majority of which are up to two years old and which have covered less than 15,000 miles. Motorpoint sells vehicles from brands representing over 95 per cent. of new vehicle sales in the United Kingdom, with models from Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi and BMW being amongst the top sellers. The Group operates from 11 retail sites across Great Britain; Derby, Burnley, Glasgow, Newport, Peterborough, Chingford, Birmingham, Widnes, Birtley, Castleford and Oldbury, of which six have opened in the last five years, together with a national call-centre dealing with online enquiries.
This information is provided by RNS