Last checked at 6 Apr 2017 07:00
6 April 2017
Motorpoint Group PLC
("Motorpoint" or the "Group")
Full Year Trading Update and Notice of Results
Trading in line with expectations
Motorpoint Group PLC, the UK's largest independent vehicle retailer, is pleased to announce the following trading update ahead of its final results for the year ended 31 March 2017 ("FY17").
Highlights
· Turnover for the year of approximately £820m, an increase of 12.5% on FY16
· The Board expects the Group's Profit Before Tax for FY17 to be at the upper end of the range of current market expectations, reflecting the improving trading performance in the second half (see note 1).
· The final quarter of the Group's financial year in particular has seen increased customer footfall and online traffic, driving improved volume performance both in like-for-like sales and sales at new sites.
· Management expect that the Group's two most recently opened sites, at Castleford and Oldbury, have made a positive profit contribution in the final quarter of FY17.
· Gross margins per unit have strengthened and returned to a normalised level in the second half.
New Sites
The second half of the year saw the Birtley site celebrate its one year anniversary having opened in November 2015, and start its contribution towards the Group's like-for-like performance.
The two new openings in the year, at Castleford and Oldbury, have delivered an encouraging performance in the second half, with the final quarter's results being particularly positive.
Outlook
There remains some macroeconomic uncertainty in the UK economy, with the EU referendum result prompting ongoing customer caution, and a more subdued new car market anticipated following last year's record performance.
The Board is cautiously optimistic regarding the UK used vehicle market and remains confident that Motorpoint's independent and flexible model ensures the Group is well placed to continue to grow market share.
The Group's 12th site is scheduled to open in Sheffield in late April 2017, a key strategic market for management to expand the Company's penetration across Yorkshire.
There remains a good pipeline of new site opportunities across the UK.
Mark Carpenter, Chief Executive Officer, commented:
"We are pleased with our improved trading performance in the second half of the year, with the business responding well following the pricing actions of the first half, thereby driving profit towards the top end of consensus range. We anticipate continued growth in revenues and profits, with an encouraging performance from our new sites.
"Motorpoint operates a compelling customer proposition and is well placed to continue building on the competitive advantages of its unique model. With four sites under three years old and our new Sheffield site opening in April, we are excited about the Group's prospects and look to the future with confidence."
Final Results
The Group will publish its final results for the year ended 31 March 2017 on 12 June 2017.
Enquiries:
Motorpoint Group plc Mark Carpenter, Chief Executive Officer James Gilmour, Chief Financial Officer
| via FTI Consulting |
FTI Consulting (Financial PR) Jonathon Brill Alex Beagley James Styles | 020 3727 1000 |
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
Notes:
1. The Board believes current market forecasts for adjusted profit before tax to be in the range of £14.6m to £15.5m, with a consensus of £15.0m.
Notes to editors
Motorpoint is the largest independent vehicle retailer in the United Kingdom. The Group's principal business is the sale of nearly-new vehicles, the majority of which are up to two years old and which have covered less than 18,000 miles. Motorpoint sells vehicles from brands representing over 95 per cent. of new vehicle sales in the United Kingdom, with models from Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi and BMW being amongst the top sellers. The Group operates from 11 retail sites across the United Kingdom; Derby, Burnley, Glasgow, Newport, Peterborough, Chingford, Birmingham, Widnes, Birtley, Castleford and Oldbury, of which six have opened in the last five years; together with a national contact-centre dealing with online enquiries.
More information is available at www.motorpointplc.com and www.motorpoint.co.uk.