Motorpoint swings to H1 loss

Automotive group Motorpoint said on Thursday that it had swung to an interim loss and warned of a marked decline in used car values early on in the second half.

Motorpoint said revenues were down 22.8% in the six months ended 30 September at £607.2m, with gross profits dropping a similar 22.6% to £37.7m. Retail volumes slumped 18.4%, while wholesale volumes were down 22.4%, and online sales were 36% lower.

As a result, Motorpoint fell from a pre-tax profit of £3.0m in 2022 to a pre-tax loss of £3.7m just one year later, principally due to finance expenses ballooning to £5.3m from £2.9m and costs associated with the group's restructurnig programme.

Chief executive Mark Carpenter said: "The rapid fall in used car values since the period end is unquestionably a near-term challenge, however, it also provides reassuring signs of supply finally beginning to improve in the nearly new market that we have dominated in the past.

"I believe next year will be a key turning point for the market and I look to the future with confidence."

Motorpoint added that the impact of high inflation, interest rates, and consumer uncertainty continued to affect demand for used cars, impacting their value, with a reduction in wholesale values of roughly 6% in just the last six weeks.

As of 0940 GMT, Motorpoint shares were down 5.68% at 73.0p.

Reporting by Iain Gilbert at Sharecast.com