Revenues are set to surge at Motorpoint Group, the Derby-based omnichannel vehicle retailer, according to an update on its performance for the full year ended 31 March 2022 (FY22).
The company expects to report revenues of £1.3bn, an increase of 82% against the prior year (£722m). Meanwhile Motorpoint anticipates reporting operating profit and profit before tax for the year in line with the Board’s expectations.
The news comes as “planned, strategic capital and operating costs increased in FY22 as [Motorpoint] further invested in future growth with priority placed on technology and marketing.”
In June 2021, the business announced objectives to significantly increase its rate of growth, with the aim of at least doubling FY20 revenue to over £2bn in the medium term, by growing E-commerce revenue to over £1bn, opening 12 new sales and collection branches, leveraging its E-commerce platform Auction4Cars.com, and increasing operational efficiency through further automation and technology investment as customers migrate to E-commerce channels.
The firm says it is making good progress against these strategic objectives.
Around 58% of transactions were online in FY22, while E-commerce revenue grew to £600m (FY21: £419m). Three new branches opened in the second half of FY22; Manchester, Maidstone and Portsmouth.
Meanwhile, the Motorpoint car buying service is now a fully automated digital first offering and the Auction4Cars.com trading platform has now been upgraded to operate as an automated marketplace to include third party vendors.
Mark Carpenter, CEO of Motorpoint, said: “Despite the uncertain consumer outlook, the Group’s continuing confidence allows it to invest in its future growth strategies across multiple initiatives.
“The expansion of our technology team dramatically increases our capability to innovate and scale our Motorpoint.co.uk and Auction4Cars.com platforms which both have huge future growth potential. Motorpoint is the UK’s largest independent omnichannel vehicle retailer, and our value-based proposition continues to resonate as much today with our customers as it did 24 years ago.
“We remain confident in our medium-term strategic objectives and are excited in our potential to grow substantially as we continue to invest in our brand, infrastructure and technology.”
