Motorpoint Group has seen an improvement in performance for Q4 2023 and in Q1 following what it described as “difficult conditions” last year.
The independent used car supermarket specialist made the trading performance update ahead of its final results, where it said it has seen its quarterly retail volumes increase by 9% year-on-year and a ‘profitable Q1’ for this year.
Motorpoint is expecting a loss before tax for the full year, but it’s anticipated to be “at the favourable end of management expectations”.
The business has previously said it is expecting 2024 profits to fall up to £6 million following a significant drop in used car prices.
The business has no structural debt and £9m of cash as of March 31, 2024.
Used car margins gradually improved through Q4 as the business increased stock turn and sold through stock affected by the abrupt Q3 correction in used car values.
In its update statement, Motorpoint said consumer demand has picked up and the business is capitalising on the investment made in its digital offering, which has generated ‘strong website traffic’.
Mark Carpenter, Motorpoint chief executive (pictured left), said: “I am delighted that the difficult conditions experienced in 2023 have eased in Q4 and, combined with our focus on driving operational excellence through a programme we call Brilliant Basics, has meant that Q4 was characterised by consistent profitability.
“We are achieving growth, increasing stock turn and improving margins, and this is expected to continue into FY25 as supply improves following recent new car registration growth.
“I am therefore optimistic for FY25 and look forward to Motorpoint making the most of the growth opportunities ahead.”
Motorpoint fought to stem its losses last year, with £1m in costs related to redundancies as part of its FY24’s ‘rightsizing programme’.