Motorpoint Group, the independent omnichannel used vehicle retailer, has reduced its headcount by 10% as part of “streamlining [its] organisational structure.”
In a trading update the Derby company said the move will result in annualised savings of £3m.
Meanwhile the group’s performance has improved throughout the first quarter of its new financial year, which is expected to continue in Q2.
In a statement to London Stock Exchange, Motorpoint said: “The impacts of high inflation, rising interest rates, and consumer uncertainty continue to affect demand for used cars.
“However, like others in the industry, we are encouraged by the growing number of vehicle supply options which, coupled with our increased use of data to determine optimum selling prices, has resulted in an improvement in retail margin. This will, in part, be tempered by lower finance commission as consumer uptake for finance reduces due to increased APR rates.
“The group has also focused on the costs of the business to ensure they are aligned with current market activity and, utilising the investment in technology to date, we are able to maintain a lower headcount as we conserve cash and return to profitability, whilst ensuring we are ready to invest for growth as more favourable market conditions return.
“The group continues to be confident it will emerge in a normalised market as a leaner and more valuable business ready to seize a significant opportunity.”
