Motorpoint has revealed revenue increased by 11.5% to £408.9m but operating profit before exceptional items down 32% to £7m in its half-year financial report.
In a statement issued via the Stock Exchange this morning Mark Carpenter, chief executive of Motorpoint Group plc conceded that uncertainty around the EU referendum had contributed to the group’s “disappointing performance” in the first half, but said that the business’ new sites were now performing well.
Motorpoint opened a 10th retail site in Castleford in April and added an 11th in Oldbury in July and a 12th will be added in Sheffield after a lease was signed on the new location.
The new sites helped to boost its number of repeat customers to 5,488 (2016 H1: 4,698) in H2 for the business which made its initial Public Offering on the London Stock Exchange on May 18th.
Carpenter said: “The uncertainty around the result of the EU referendum contributed to the Group's disappointing performance in the first half; however we managed stock levels carefully thereby maintaining our industry leading stock turn despite the short term impact on margins.
“Whilst some uncertainty around Brexit remains, the three new sites that we have opened in the last 12 months are performing well and we anticipate they will deliver a solid performance in the second half.
“Despite the softening in consumer confidence, market conditions since the period end have remained stable with a good level of stock availability and margins have returned to normal levels.
“We continue to invest in opening new sites, and we have recently acquired a leasehold site in Sheffield which will open in Spring 2017.
“The Group's differentiated proposition, strong employee and customer focus and industry leading scale leave us well positioned to deliver a full year performance in line with expectations.
“I feel that the Company's dedication to offering choice, value and service will ensure that Motorpoint remains the Car Buyers' Champion."
Among Motorpoint’s key financial results for the six months ended September 30th were: revenue increased 11.5% to £408.9m (2016 H1: £366.8m); oprofit before exceptional items down 32% to £7m (2016 H1: £10.3m); exceptional costs of £4m (2016 H1: £Nil) relating to IPO expenses; profit before tax and after exceptional items of £2.4m (2016 H1: £10.2m).
Underlying earnings per share stood at 5.29p, compared to 8p during H1, with cash flow from operations before exceptional items increased to £12.5m (2016 H1: £8.0m).
Motorpoint paid a maiden interim dividend of 1.33p (2016 H1: £Nil), to be p
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