Motorpoint rebounds after challenging 2023 with strong Q1 retail sales growth

Used car supermarket Motorpoint’s faith in the future is being rewarded after a difficult 2023 as it reports strong retail sales growth in the first quarter of its financial year.

Expecting to meet its full-year goals, the company noted its healthy net cash position of around £6.5 million following the repurchase and cancellation of 2.5 million shares for £3.5 million.

Motorpoint's revenue had plunged by a quarter in 2023 with loss widening by £10m in a year which chief executive Mark Carpenter called “the most difficult in our history” after stock mix and vehicle price deflation hit it badly, with annual retail volumes contracting by 8.2%.

The macro environment has damaged car demand, with annual sector sales for 0-4 year old cars falling from 2.5m before the pandemic to 1.5m. 

In a January full-year update Motorpoint had reported that pre-tax losses grew to £10.4m from £300,000 last time, with sales slumping by a quarter to £1.09 billion.