LONDON (ShareCast) - (ShareCast News) - Independent vehicle retailer Motorpoint warns that volume and margin performance in its first half is behind original management expectations, prompting a more than 20% share-price slide.
The company expected to report about 11% revenue growth, underpinned by a positive like-for-like performance in the first half.

Uncertainty surrounding UK's potential Brexit had seen management invest in margin to protect its good level of stock turn, and managed its stock levels carefully.

"Accordingly, the volume and margin performance in the first half is behind original management expectations," Motorpoint said in a trading statement for the half to Sept. 30.

It has opened three new sites in the last 12 months and -- although these were yet to make a positive contribution -- were performing broadly to plan.

"Management is confident that these new sites will deliver a solid performance in the second half and beyond," Motorpoint said.

"With an improved contribution from the new site openings, good supply and an improving margin outlook, management foresees a stronger second half weighting with net margins moving back to more normal levels.

"The pipeline of potential new sites remains encouraging, and positive progress is being made on a number of options."

At about 13:41 BST, shares in Motorpoint were down 22.16% to 130p.

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