A car supermarket giant based in Derby has said it is increasing its market share after a “significant outperformance” during the first half of its current financial year.
In a trading statement issued this morning ahead of its half-year results, , which has sites across the UK selling nearly new cars, also announced a new share buyback programme of up to £10 million.
The company expects to report revenue growth of about one per cent when it posts its results for the six months to September 30, which it said “represents a material increase in market share”.
In the trading statement, Motorpoint said: “As has been well-documented across the sector, there was unusually high pressure on car margins over the early summer months.
“This pressure has now abated, and Motorpoint’s gross margin for the first half is expected to be broadly in line with the prior year.
“Overheads for the period are anticipated to be circa £2 million higher than the comparable period last year, although half of this cost is non-recurring in nature.
“The board continues to closely monitor consumer confidence in light of the ongoing economic and political uncertainty.
“The board remains confident that the group’s recent trading performance and strong current stock profile leaves Motorpoint well placed to continue to increase market share while management evaluate further potential new site opportunities. As a result, the board remains comfortable with its full-year expectations.
“The board is also pleased to have separately announced the launch of a new, up to £10 million, share buyback programme today which reflects the group’s continued strong cash generation.”
Motorpoint is the country’s largest independent vehicle retailer, specialising in the nearly-new vehicle market. The majority of its stock, which numbers more than 7,000, are up to two-years old and have covered less than 15,000 miles.
It sells vehicles from brands representing over 95% of new vehicle sales in the UK, with models from Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi and BMW being among the top sellers.
Founded more than 20 years ago, Motorpoint initially started out with just one site in Chartwell Drive, Derby. Today, it also has sites in Burnley, Glasgow, Newport, Peterborough, Chingford, Birmingham, Widnes, Birtley, Castleford, Oldbury and Sheffield.
Such is the growth of the business that this summer, the firm relocated its admin staff to a new office at Wyvern Business Park called Champion House.
Next year the firm is set to open a new vehicle preparation centre at Peterborough - and it has acquired the land for what will be its 13th retail site.
Motorpoint is expected to announce its half-year results on November 28.
