Motorpoint has bounced back into profitability, attributing this to the easing of macroeconomic pressures and a resurgence in customer demand. The used car supermarket anticipates a pretax profit of approximately £2m for the six months leading up to September, a significant improvement from the pretax loss of £3.7m recorded during the same period last year.
The company reported a 17 per cent increase in retail volume during the first half of the year and expects this “strong momentum” to continue into the next six months, as reported by City AM.
The firm stated: “As macroeconomic headwinds eased in H1 FY25, used car prices and margins remained broadly stable and customer sentiment improved,” Motorpoint welcomed the interest rate cut in August and suggested that further reductions would boost profitability. Despite ongoing challenges with the supply of used vehicles remaining “subdued”, the company said its efforts to “right size” the business, coupled with recovering demand, have resulted in a return to profitability.
Motorpoint’s shares have seen an impressive rise of nearly 40 per cent this year. Last year, the company experienced what it described as the “most difficult year” in its history due to wider economic pressures and sector-specific issues, reporting a £10.4m loss for the year ending in March.
Mark Carpenter, Motorpoint’s CEO, said the results demonstrated “the resilience of the Motorpoint business model…once again.”
He added: “This solid performance in the first half of the year stands us in good stead as we look to progress our strategy to accelerate growth,” The company is set to announce its interim results on 27 November.
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