Motorpoint Group warns on profits amid fall in electric vehicle values
By Iain Gilbert
Date: Friday 27 Jan 2023
(Sharecast News) - Vehicle retailer Motorpoint Group warned on Friday that profitability will be negatively impacted by a fall in electric vehicle values for the "foreseeable future".
Motorpoint said revenues had risen 17% in the nine months ended 31 December to £1.06bn as it witnessed a return to year-on-year retail volume growth in December and into January.
However, gross profit per unit was below expectations due to higher financing costs and a drop in the value of electric vehicles
Motorpoint stated that macroeconomic conditions continued to "promote consumer uncertainty", reducing used car demand, and opted not to provide specific profit guidance. It also highlighted that the fall in electric vehicle values would continue to negatively impact profitability.
Chief executive Mark Carpenter said: "Motorpoint will emerge from the current depressed consumer market a more efficient business, having made progress on multiple key strategic initiatives.
"In a period when some of the group's competitors are retreating or lacking financial capability and when current macro headwinds are forecast to continue, the board believes that there is significant opportunity to continue making targeted strategic investment to grow market share and become a highly profitable market leader.
As of 0900 GMT, Motorpoint shares were down 2.07% at 142.0p.
Reporting by Iain Gilbert at Sharecast.com
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