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(Sharecast News) - Motorpoint unveiled ambitious medium-term growth targets on Wednesday, including plans to more than double annual retail vehicle sales to over 120,000 units and expand its store network, as the used car retailer reported a sharp rise in first-half profits.
The company said it was targeting a network of 30 to 35 large-format stores, up from its current 21, alongside retail gross profit per vehicle of more than £1,550, compared with £1,431 in the first half.
It also aims to increase EBITDA per retail unit to over £550 from £460 and achieve return on capital employed of more than 100%, up from 81% currently.
Motorpoint said the ambitions would be supported by market share gains, new store openings and continued investment in its proprietary MotoAI technology platform, which uses AI and data analytics to improve vehicle pricing, allocation and productivity.
The targets accompanied a strong set of interim results, with pre-tax profit surging 80.6% to £6.5m in the six months to 30 September, up from £3.6m a year earlier.
Revenue rose 6% to £686.7m while EBITDA climbed 19.9% to £16.3m.
Retail vehicle sales grew 7.6% to a record 35,430 units, significantly outperforming growth of just 0.6% in the wider used car market, the company said.
Looking ahead, Motorpoint said strong trading momentum had continued into the second half, with retail volumes increasing 9.7% in October and demand remaining robust.
The company maintained its expectations for the financial year ending March 2027, following an upgrade to market consensus in September, despite continued economic uncertainty, elevated inflation and interest rates.
Chief executive Mark Carpenter said: "Strong momentum has continued into the second half, and I am confident that Motorpoint is well positioned to keep growing market share and to deliver sustainable value for shareholders."
The company also doubled its interim dividend to 2p per share.
Shares were up 1.5% at 142.16p by 1017 GMT.
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