Motorpoint returns to profitable growth with retail volumes up 14%

Motorpoint is expecting to post a pre-tax profit performance of up to £4.3 million after recovering from a £10.4m loss last year.

The used car supermarket specialist has seen a 14% increase in retail volumes sold for its full year and saw particularly strength in the 0-6 year old market, with volumes up in this segment by 14.8%.

The group updated the stock market for the year ending March 31 ahead of posting its full results in June.

Motorpoint had paused its network expansion in the second half of 2023 due to financial difficulties as its profits plunged, but a restructuring and cost reduction programme has succesfully revitalised the business.

Mark Carpenter, Motorpoint chief executive, said: “Having returned to profitability in the first half of FY25, I am very pleased with our performance across the full year, delivering profitable growth and significantly outperforming the wider used car market.

“We recommenced our new store opening programme with the group’s 21st store opening in Norwich in December 2024.

“Notwithstanding the ongoing consumer and macroeconomic environment, Motorpoint is in a strong position to grow further, and I am cautiously optimistic for the FY26 outlook.”

Motorpoints improved  financial position has seen it launch a further share buyback announced to repurchase and cancel up to 3m shares.

The aggregate purchase price of all ordinary shares acquired under the programme will be no more than approximately £4m.

Motorpoint has ambitious plans for growth, with further investments earmarked for digital innovation, technology and “other capabilities that will help with our ambitions”.