Motorpoint, the omnichannel used vehicle retailer, has slipped to a pre-tax loss despite record revenue, according to final results for the year ended 31 March 2023 (FY23).
The UK’s difficult macroeconomic conditions, and their knock-on effect on the used car market, impacted the Derby company’s growth and profitability in the year, particularly in the second half.
While revenue increased to £1.4bn from £1.3bn in the prior year, helped by vehicle mix and inflation, Motorpoint posted a loss before tax of £300,000, slipping from a pre-tax profit of £21.5m, influenced by rising financing costs, limited stock availability and the fall in value of electric vehicles, along with increased investment of £6.1m relating to delivery of strategic objectives.
Mark Carpenter, Chief Executive Officer of Motorpoint Group PLC, said: “Having recently celebrated our 25th anniversary, I have been reflecting on the Group’s performance and our journey to date. FY23 was marked by record revenues and further strategic investments as we endeavour to provide customers across the UK a seamless car buying experience.
“This investment is thus far delivering good results and has positioned the Group better for the future. This allows us to pause the level of ongoing investment, given the current consumer and macro environment, while enjoying the efficiencies we have now built into the business and continuing to deliver on our growth strategy within the market constraints.
“Whilst the impact of higher interest rates and inflation will continue into FY24, new car registrations have been steadily increasing, with the fleet market driving much of the growth, which will in turn benefit used vehicle supply. This, coupled with continued market share gains and progress on our key initiatives, will enable Motorpoint to emerge from the current environment in a strong position to more aggressively pursue profitable market leadership.”
