Business
Half Year Trading Update and Notice of Results
Half Year Trading Update and Notice of Results.
About this update from Motorpoint Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2741O\n Motorpoint Group plc\n 07 October 2021\n \n \n \n \n 7 October 2021\n \n \n \n Motorpoint Group PLC\n \n \n (\"Motorpoint\" or the \"Group\")\n \n \n \n Half Year Trading Update and Notice of Results\n \n \n \n Motorpoint Group PLC, the UK's leading independent omnichannel vehicle retailer, provides the following update on its trading performance for the half year ended 30 September 2021 (\"H1 FY22\").\n \n \n \n Revenue\n \n \n \n Group revenues grew by c.57% against H1 FY21 following continued strong consumer demand for used vehicles. Online Retail sales increased c.53% over the same period reflecting continued progress in our transformation to a digitally led business. As widely seen across the market, sales growth slowed from June due to the reduced supply of vehicles,following our record trading in April and May. The Society of Motor Manufacturers and Traders (SMMT) reported Q2 market growth of 109% (April to June 2021, versus same period 2020). Motorpoint significantly outperformed this, with growth of 242%. \n \n \n \n Due to the reduced supply of vehicles in the market, we expanded our offering from our core market of vehicles under three years old, to include 3-4 year old vehicles. We quickly gained a 1.4% share of this market, again showing our agility to successfully adapt at pace to changing market conditions.\n \n \n \n \n Auction4Cars.com revenue increased c.38% against H1 FY21, despite the Group selling more vehicles through the retail sales channel instead of feeding these vehicles onto the Auction4Cars.com platform.\n \n \n \n Gross Profit and Operating Expenses\n \n \n \n Throughout the first half, gross profit margins remained strong due to appreciation of vehicle values. Against H1 FY21, gross profit increased by c.58%. \n We continue to invest in our customer proposition, sharing our scale advantages and by expanding our Home Delivery fleet. Our APR finance rates were reduced further to 8.9% from 1 October as we look to maintain our 'best value' offering.\n \n \n \n As planned, strategic costs increased in H1 FY22 as we further invest in future growth with technology and marketing investment rising by more than 150% vs H1 FY21. In particular, we have invested heavily in our infrastructure and talent capabi...