Motorpoint increased profit before tax by 83% in the year to March 31, as the used car retailer delivered record volumes and expanded its use of artificial intelligence (AI) to improve efficiency and margins.
The company reported profit before tax of £7.5 million, up from £4.1m a year earlier, while revenue increased 8.1% to £1.27 billion. EBITDA rose 15.1% to £27.5m.
Retail sales reached a record 64,600 units during the year, supported by gains in market share and improvements in vehicle sourcing, pricing and customer acquisition.
Mark Carpenter, chief executive of Motorpoint, described FY26 as “a step change year, where the use of data became fundamental and we embraced the tangible benefits of AI”.
The retailer increased its average metal margin per unit by 8.3% to £1,075, while return on capital employed improved to 67% from 47% a year earlier.
AI drives productivity gains
Motorpoint said investment in data and AI played a growing role in improving profitability and operational efficiency.
The retailer reduced customer acquisition costs to £163 per unit from £177 the previous year, citing efficiency improvements and AI adoption.
Among the initiatives introduced during the year were algorithm-based vehicle allocation, data-led pricing tools and an AI-powered digital discovery assistant.
The company also deployed agentic AI technology to re-engage customers with closed quotes, generating 877 incremental vehicle sales during FY26.
Motorpoint has also introduced QR code pricing displays across its stores, allowing customers to access vehicle information digitally while providing pricing and productivity insights for the business.
Carpenter said continued investment in data and AI was helping to drive profitable growth and support the retailer’s expansion plans.
Market share continues to grow
Motorpoint reported further gains in market share during the year, particularly in the younger used car market.
Its share of the 0-6 year-old used car market increased from 2.46% in calendar year 2025 to 2.53% in the first quarter of 2026. Within mature store catchments, market share rose to 7.4% from 7.1% a year earlier.
The retailer said the UK used car market remains highly fragmented and believes there is scope to continue growing market share through a combination of new store openings and operational improvements.
Motorpoint plans to open a new store in Leeds this summer, taking its network to 22 sites. It has also secured three additional markets for future openings planned during FY27 and FY28.
To support expansion, the business has secured an additional £10m property revolving credit facility.
Direct vehicle sourcing increases
The retailer continued to increase the proportion of vehicles sourced directly from consumers.
Sell Your Car purchases rose 85% year-on-year and now account for 10% of total vehicle purchases.
Including part-exchanges, Motorpoint bought 46,000 vehicles directly from consumers during FY26 and is targeting 12,000 Sell Your Car purchases in FY27.
The business also increased purchases through fleet and bulk channels, which it said improved efficiency while helping to secure newer stock and support margin growth.
Strong start to FY27
Motorpoint said trading momentum has continued into the new financial year despite wider economic uncertainty.
Retail volumes increased 15% during April and May, while profitability remained strong and metal margins stable.
Sell Your Car purchases have continued at more than 200 vehicles per week since the end of 2025.
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