REG - Motorpoint Group plc - Full Year Trading Update & further share buyback

MotorpointAnnouncement

03/04/2025 07:00

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RNS Number : 4122D  Motorpoint Group plc  03 April 2025

 

3 April 2025

Motorpoint Group PLC

("Motorpoint" "Company " or the "Group")

 

Q4 and Full Year Trading Update, and

commencement of further share buyback

 

 

Motorpoint Group PLC, the UK's leading independent omnichannel vehicle
retailer, provides an update on its trading performance for the fourth quarter
and year ended 31 March 2025 ahead of announcing its Final Results in June
2025.

 

Highlights:

 

·    Strong return to profitable growth

·    Full year retail volumes up c.14.0% on FY24

·    Strong outperformance of the used car market. In the 0-6 year
category, for the 12 months to 31 December 2024, Motorpoint's retail sales
volumes grew 14.8% year on year, against 2.8% market growth

·    Group expects to report Earnings Before Interest and Tax and Profit
Before Tax for the full year within the ranges of £13.3m to £13.6m (FY24:
£(0.6)m), and £4.0m to £4.3m (FY24: £(10.4)m), respectively, representing
significant improvement

·    Our 21(st) store opened in Norwich in early December and is trading
well; we continue to evaluate further store opening opportunities

·    Balance sheet robust with no structural debt and c.£6m of cash at 31
March 2025, despite significant vehicle purchasing throughout March 2025.
Strong stock position as we commence FY26

·    Improving Net Promoter Score (NPS) and tracking over 80 in H2 FY25

·    A further share buyback announced to repurchase and cancel up to 3m
shares

 

Positive momentum continued through H2 FY25, with strong retail unit volumes,
which translated into profitable growth. For the 12 months to 31 December
2024, we significantly outperformed the 0-6 year used car market, growing
retail sales volumes by 14.8%. As anticipated, growth moderated in Q4 as we
lapped tougher comparatives alongside a continuing subdued consumer backdrop
although margins continued to be generally stable. High interest rates
continue to hamper finance commission performance and stock funding costs.

 

We continued to enhance our digital capabilities during the period, which
translated into increased website traffic and resultant leads. Our use of more
advanced data analytics continues to expand, and we expect to see further
benefits coming through in FY26, particularly in terms of car purchasing and
pricing. We are pleased with the performance of our 21(st) store, which opened
in Norwich in December 2024, and we are actively seeking further new store
opportunities in strategic locations across the UK to drive further growth.

 

We remain focused on providing an excellent customer service. Our commitment
to service and quality in H2 FY25 resulted in our NPS returning to above 80 in
the period.

 

Mark Carpenter, Chief Executive Officer of Motorpoint Group PLC commented:

 

"Having returned to profitability in the first half of FY25, I am very pleased
with our performance across the full year, delivering profitable growth and
significantly outperforming the wider used car market. We recommenced our new
store opening programme with the Group's 21(st) store opening in Norwich in
December 2024. Notwithstanding the ongoing consumer and macroeconomic
environment, Motorpoint is in a strong position to grow further, and I am
cautiously optimistic for the FY26 outlook.

 

I am also pleased to announce a further share buyback programme, following the
successful completion of last year's £5 million buyback. This reflects both
our ability to generate strong cash flow whilst achieving sustainable growth,
and our focus on delivering attractive returns to shareholders."

 

Commencement of share buyback

 

Motorpoint will shortly commence a share buyback programme (the "Programme")
to repurchase up to 3 million ordinary shares of 1 pence each in the capital
of the Company ("Ordinary Shares") representing approximately 3.5% of the
Company's Ordinary Shares. The aggregate purchase price of all Ordinary Shares
acquired under the Programme will be no more than approximately £4m
(excluding stamp duty and expenses).

 

The Company has appointed Numis Securities Limited ("Deutsche Numis") to
manage the Programme.

 

The Company continues to have ambitious plans for growth, and further
investments in digital, technology and other capabilities that will help it
realise its ambitions.  Even after taking into consideration the capital
required to fund planned organic growth, the Company's cash generation and the
strength of its balance sheet has led the Board to conclude that the Programme
is an attractive use of the Company's resources and is beneficial for all
shareholders.

 

The Board believes that the current level of liquidity in the issued Ordinary
Shares may impact the progress of the Programme. In order to complete the
Programme in an effective manner the Group, in discussions with its broker,
Deutsche Numis has agreed that on any given trading day a buyback of shares
under the Programme may exceed 25 per cent. of the aggregated average daily
trading volume across all trading platforms on which Motorpoint shares are
traded. On days where a buyback of shares exceeds 25 per cent. of the average
daily trading volume, the Group will not fall within the exemption contained
in Article 5(1) MAR.

 

The Programme will be conducted in accordance with the general authority to
repurchase shares granted by the Group's shareholders at the 2024 Annual
General Meeting, Chapter 12 of the UK Listing Rules and within the parameters
prescribed by the Market Abuse Regulation 596/2014/EU and the Commission
Delegated Regulation 2016/1052/EU. As noted above, on days where a buyback of
shares exceeds 25 per cent. of the average daily trading volume, the Group
will not fall within the exemption contained in Article 5(1) MAR.

 

Details of any Ordinary Shares repurchased will be notified to a Regulatory
Information Service by the Group following any repurchase as required by the
MAR and the Listing Rules of the FCA. The Company confirms that it currently
has no unpublished Inside Information.

 

Inside Information

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

 

 

Enquiries:

 

 Motorpoint Group PLC                      via FTI Consulting

 Mark Carpenter, Chief Executive Officer

 Chris Morgan, Chief Financial Officer

 FTI Consulting (Financial PR)             020 3727 1000

 Alex Beagley

 Harriet Jackson

 Amy Goldup

 

Forward looking statements:  The information in this release is based on
management information. This report includes statements that are forward
looking in nature. Forward looking statements involve known and unknown risks,
assumptions, uncertainties and other factors which may cause the actual
results, performance or achievements of the Group to be materially different
from any future results, performance or achievements expressed or implied by
such forward looking statements. Except as required by the Listing Rules and
applicable law, the Company undertakes no obligation to update, revise or
change any forward looking statements to reflect events or developments
occurring after the date of this report.

 

Notes to editors

Motorpoint is the UK's leading independent omnichannel vehicle retailer,
focused on giving retail and trade customers the easiest, most affordable and
seamless way of buying, selling and financing their car whether online, in
store or a combination of both. Through its leading B2C platform
Motorpoint.co.uk and UK network of 21 sales and collection stores, the Group
provides an unrivalled offering in the nearly new car market, where consumers
can effortlessly browse, buy or finance their next car and collect or have it
delivered directly to their homes. Motorpoint's purely online wholesale
platform Auction4Cars.com sells vehicles into the wholesale B2B market that
have been part exchanged by retail customers, or purchased directly from them
by the Group as part of its online car buying service. Motorpoint's
diversified business model, underpinned by its established brand, industry
leading technology and sophisticated marketing infrastructure, always delivers
the best choice, value, service and quality for customers.

 

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