Motorpoint has continued to drive profits within the business through strong retail volume growth, despite a 7.3% drop in revenues over the six months ended September 30, 2024.
The business has posted its unaudited results for H1 where it showed a £7 million boost in gross profit performance, despite a £44m revenue drop year-on-year.
Mark Carpenter, Motorpoint Group chief executive (pictured), said: “I am pleased with our solid performance in the first half of FY25, which was marked by a return to profitability following several years of considerable headwinds that have impacted our industry.
“Brilliant Basics, our right sizing and margin improvement programme, delivered what it needed to in FY24, ensuring foundations for future growth.
“As well as strong year on year volume growth and market outperformance, margins strengthened, and stock turn improved to an industry-leading 41 days in stock.”
Carpenter said that recent challenges does meant the business is remaining cautious as supply slowly improves and macroeconomic pressures continue to ease.
He added: “In response to higher demand for Motorpoint cars, we have bolstered our team and have the firepower to restart investment in our estate, including the opening of new stores.
“I am very excited by our plans to unlock further profitable growth, and we are in a strong position to continue increasing our share of the used car market.”
Motorpoint recently opened its 21st centre in Norwich, following on from the company’s opening of its Ipswich car showroom in May 2023.
Motorpoint referenced the the landmark High Court rulings on 25 October 2024 that a broker could not lawfully receive a commission from a lender without the customer’s fully informed consent, but said that after a 10 day period where the business “explored its options” it returned to its pre-existing agreement with its primary finance provider on November 8.
It said its position on commission disclosure is “robust” and it doesn’t expect to see any material impact on its full year profit expectations as a result of the situation around finance regulation.
However, it did say that interest rates remain high and continue to impact finance penetration rates across the business.
Motorpoint’s retail volumes increased by 17.4% in H1 with 30,300 retail units sold in the period. Growth in the company’s Q2 of its 2025 financial year has seen further progress in retail volumes up 26.8%.
The business said the reduction in revenues is reflective of a more affordable vehicle mix overall and price deflation in H2 of its 2024 financial year.
Motorpoint’s gross profit performance has been driven by using data-led pricing and an improved focus and approach to stock management. It said used car prices have remained “broadly stable” as macroeconomic headwinds eased in H1 FY25.