Motorpoint delivers sharp H1 profit growth on higher volumes, record metal margins

(Sharecast News) - Automotive retailer Motorpoint said on Friday that trading had strengthened in the first half, with strategic investments in technology and new store growth driving a sharp improvement in profitability.

Motorpoint stated retail volumes rose 7.6% yearonyear, outperforming the wider usedcar market and benefiting from the opening of its Leeds site in July. It said its AI and datadriven operating platform continued to support better pricing, vehicle sourcing, customer acquisition and fulfilment, helping deliver record metal margins.

Underlying pre-tax profits for the six months ended 30 September were expected to be around £6.5m, up 81% on the prior year, aided by disciplined cost control.

Motorpoint also highlighted the strength of its capitallight model, with return on capital employed over the past 12 months expected to rise to roughly 80%, from 59% previously.

Looking ahead, Motorpoint said trading remained in line with recently upgraded market expectations and reiterated its confidence in the FY27 outlook for underlying pre-tax profits of between £9.8m and £10.8m.

Chief executive Mark Carpenter said: "Motorpoint has delivered another strong period of volume and profit growth. This is despite a backdrop of consumer uncertainty fuelled by inflation, high interest rates and the impending Government budget. The investments made in technology have driven tangible operational and financial benefits, helping us source the right vehicles and price them for optimised rate of sale, which results in consistently high metal margins.

"The competitive advantages resulting from this investment, along with strong financial performance in the first half of FY27 gives us confidence in the Group's prospects for the remainder of the year and beyond."

As of 1030 BST, Motorpoint shares were up 0.043% at 140.06p.

Reporting by Iain Gilbert at Sharecast.com

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