6 April 2018
Motorpoint Group PLC
("Motorpoint" or the "Group")
Full Year Trading Update
Strong full year performance
Motorpoint Group PLC, the UK's largest independent vehicle retailer, is pleased to announce the following trading update ahead of its preliminary results for the year ended 31 March 2018 ("FY18").
· The Board expects to report full year revenue growth of over 18%, as Motorpoint's first half growth rate has continued through the second half
· Gross margins per unit remained stable throughout the year, with good availability across all sourcing channels
· The Group's most recent openings (Castleford, Oldbury and Sheffield) are all performing in line with management's new site contribution model
· Secured a new £20m unit stocking facility with Lombard North Central PLC to support the Group's ongoing volume growth
· The Board expects to report Underlying Profit Before Tax for FY18 at the upper end of market expectations
· Given the Group's strong cash generation, the Board reiterates its commitment to the share buyback programme of up to £10m announced on 29 November 2017
Notwithstanding the macroeconomic uncertainty, the Board remains cautiously optimistic about the UK used vehicle market and is confident that Motorpoint's flexible stock sourcing model ensures the Group is well placed to continue to grow market share.
The Group continues to evaluate opportunities for its 13th retail site, with a pipeline of new site options under review.
Mark Carpenter, Chief Executive Officer, commented:
"We had a good end to our financial year and are pleased that our strong first half trading performance continued into the second half of the year, as we gained further market share across our sites.
"Motorpoint operates a compelling proposition and is well placed to continue building on the competitive advantages of its unique model. With four sites under three years' old and a number of potential new sites currently under review, we remain excited about the Group's prospects and the Board looks to the future with confidence."
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.
Motorpoint Group PLC
Mark Carpenter, Chief Executive Officer
James Gilmour, Chief Financial Officer
via FTI Consulting
FTI Consulting (Financial PR)
020 3727 1000
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 12 retail sites across the United Kingdom; Derby, Burnley, Glasgow, Newport, Peterborough, Chingford, Birmingham, Widnes, Birtley, Castleford, Oldbury and Sheffield of which four have opened in the last three years; together with a national contact-centre dealing with online enquiries.
This information is provided by RNS