Motorpoint FY revenues drop

13th Jun 2024 08:06

(Sharecast News) - Car retailer Motorpoint said on Thursday that revenues had dropped in the year ended 31 March as it faced a number of economic challenges throughout the period.

Motorpoint said revenues were down 24.6% at £1.08bn, while gross profits fell 14.7% to £73.1m and pre-tax losses widened from £300,000 to £8.2m. Gross profit margins improved 70 basis points to 6.7%.

The London-listed group said it had seen signs of recovery towards the end of the year, with a profitable Q4 performance and a positive start to FY25, stating it was optimistic about potential growth and cash generation, leveraging a leaner cost base and improved market conditions.

Chief executive Mark Carpenter said: "The past financial year was the most difficult in our history, with multiple negative headwinds in the macro environment such as rising borrowing costs and subdued customer demand, coupled with industry-specific issues such as lower inventory and deflation. The resilience of our cash generation evidences the strength of our business model and we now look forward to continuing our journey of profitable growth as the improving trends of Q4 have continued into Q1."

As of 0910 BST, Motorpoint shares were down 2.11% at 139.50p.

Reporting by Iain Gilbert at Sharecast.com