Motorpoint plans to expand to 30 to 35 dealerships and sell more than 120,000 used cars annually as half-year pre-tax profit rose 80.6%.
The used car supermarket group has set out medium-term growth targets, combining new openings with increased sales through its existing network.
It said its Leeds dealership, which opened in July, was trading ahead of plan, while chief executive Mark Carpenter pointed to a strong pipeline of further openings. No timetable for reaching the targets or additional locations was announced.
Motorpoint is also expanding Norwich following the closure of its smaller, less profitable Ipswich dealership after the reporting period.
Carpenter said: “Leeds is already trading ahead of plan, and with a strong store pipeline we have the confidence to set clear targets for the next phase of our growth, including operating from 30 to 35 stores and selling more than 120,000 retail units a year.”
Profit and sales growth
The expansion ambitions accompanied results for the six months to September 30, 2026, showing pre-tax profit increased to £6.5 million from £3.6m a year earlier.
Revenue rose 6% to £686.7m, while gross profit increased 11.9% to £55.4m.
Retail sales reached a first-half record of 35,430 vehicles, up 7.6%. Motorpoint said this compared with growth of 0.6% across the used car market.
Including wholesale transactions through Auction4Cars.com, total vehicle sales increased 8.2% to 51,270.
Alongside its network and volume ambitions, Motorpoint is targeting retail gross profit of more than £1,550 per vehicle, compared with £1,431 in the first half.
It also aims to achieve EBITDA of more than £550 per retail unit, against £460 currently, and return on capital employed above 100%, compared with 81%.
AI pricing supports higher margins
Motorpoint reported a record metal margin of £1,266 per vehicle, up from £1,063 a year earlier. Retail gross profit per unit increased by £82 to £1,431.
The group attributed the improvement partly to its AI pricing models and the use of data across vehicle buying, pricing and allocation.
This helped offset lower finance commission after Motorpoint reduced its customer APR from 12.9% to 10.9% to support affordability.
Customer acquisition costs fell from £149 to £143 per retail vehicle sold.
Carpenter said: “Our integrated platform is improving profitability per vehicle, delivering a record metal margin in the half and reducing customer acquisition cost.”
Motorpoint refers to its combined data, software, AI and automation capabilities internally as MotoAI. It said AI was also generating additional sales by following up previously closed or inactive enquiries and matching customers with relevant vehicles.
October growth supports outlook
Average days in stock increased from 49 to 54, although this was unchanged from the March 2026 year end. Motorpoint said inventory had increased to support Leeds and prepare for third-quarter trading.
Operating expenditure rose 6.6% to £43.7m, reflecting the Leeds opening, additional employees to support higher volumes and wage inflation.
Wholesale volumes increased 9.5% to 15,840 vehicles, but wholesale gross profit per unit fell from £351 to £300 as more vehicles bought directly from consumers were sold through the retail channel.
Retail sales growth accelerated to 9.7% in October. Motorpoint said demand remained strong and it had increased inventory to support second-half trading.
Full-year expectations remain unchanged following September’s upgrade.
Net debt excluding lease liabilities increased to £14.3m from £8.8m at the March year end. The group doubled its interim dividend to 2p per share.