Motorpoint Group has said that it expects to report a 6% increase in revenues and a 10% increase in underlying profit before tax in its forthcoming annual financial results to March 31, 2019.
The £991.2m turnover (FY2017/18) car supermarket operation, the ID50’s number one retail business, revealed its anticipates results ahead of the official publication of its preliminary annual results, on June 11, as part of a trading update issued by the London Stock Exchange.
Its results include sales from Motorpoint’s recently-updated Glasgow branch, which opened its doors in August.
The group has also announced that it has exchanged contracts on a brand new dealership site, which is anticipated to be its 13th retail site upon its planned opening in the second half of 2019.
In its trading update, the group said that it had seen margins soften as a result of “strong vehicle supply” across the sector but added that it expected to have continued to increase market share over the year, nonetheless.
Mark Carpenter, Motorpoint’s chief executive, added: “The Group experienced a slower second half but I am pleased that we have achieved double-digit profit growth for the full year and executed strong cost disciplines.
“Our resilient model is demonstrated through a Gross Profit to Overheads ratio of 144% and a robust closing balance sheet which is again absent of any structural debt.
“The agility of the Group’s business model enables management to react swiftly to the evolving political and economic situation and the Board believes that the Group is well placed to continue building on its compelling customer proposition.”
In its financial year ended March 31, 2018, Motorpoint recorded a 71% rise in pre-tax profits, to £20 million (2017: £11.7m), as it ramped up sales and won record levels of repeat business.
The 12-site group grew turnover by 20.6% to £991.2m during the same period.
Motorpoint said in this month’s trading update that in light of the continued volatile political environment and consumer uncertainty, the Board remains cautious on the outlook for the financial year ahead.
In spite of this it expects to make further progress in revenue and underlying profit, but notes that there will be “a c£2m (non-cash) profit headwind in FY20 compared to FY19 from historic deferred extended guarantee income”.
Motorpoint will report Preliminary results for the year ended March 31, 2019, on June 11.
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