Full Year Trading Update and Notice of Results

RNS Number : 2575V

Motorpoint Group plc

05 April 2019

 

5 April 2019

Motorpoint Group PLC

("Motorpoint" or the "Group")

Full Year Trading Update and Notice of Results

Solid Full Year Performance

Motorpoint Group PLC, the UK's largest independent vehicle retailer, is pleased to announce the following trading update ahead of its preliminary results for the year ended 31 March 2019 ("FY19").

Highlights

·     The Board expects to report full year revenue growth of over 6% compared to FY18.  Whilst the second half of the financial year has seen more modest growth, we expect to have continued to increase market share over the year.

·     Gross margins per unit softened slightly from last year's performance, reflecting the strong vehicle supply availability in the market.  This availability has allowed the Group to start the new financial year with a broad and competitive stock offering.

·     The Board expects to report year on year growth of Underlying Profit Before Tax for FY19 of circa 10%.

·     Operating cash conversion has again been strong for the period, and the Board remains committed to maintaining the Group's ongoing share buyback programme.

Outlook

The Group's flexible stock sourcing model means that it is well positioned to continue to grow market share in the UK nearly new used car market.  That said, in light of the continued volatile political environment and consumer uncertainty, the Board remains cautious on the outlook for the financial year ahead. In spite of this the Board expects to make further progress in revenue and underlying profit, but notes that there will be a c£2m (non-cash) profit headwind in FY20 compared to FY19 from historic deferred extended guarantee income. 

The Group has exchanged contracts on a new site, anticipated to be its 13th retail site upon its planned opening in the second half of 2019.

Mark Carpenter, Chief Executive Officer, commented:

"The Group experienced a slower second half but I am pleased that we have achieved double-digit profit growth for the full year and executed strong cost disciplines. Our resilient model is demonstrated through a Gross Profit to Overheads ratio of 144% and a robust closing balance sheet which is again absent of any structural debt.

"The agility of the Group's business model enables management to react swiftly to the evolving political and economic situation and the Board believes that the Group is well placed to continue building on its compelling customer proposition."

Preliminary Results

Motorpoint will report Preliminary results for the year ended 31 March 2019 on 11 June 2019.

 

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.

Enquiries:

Motorpoint Group PLC Mark Carpenter, Chief Executive Officer James Gilmour, Chief Financial Officer	via FTI Consulting
FTI Consulting (Financial PR) Alex Beagley James Styles Fern Duncan	020 3727 1000

Notes to editors

Motorpoint is the largest independent vehicle retailer in the United Kingdom. The Group's principal business is the sale of nearly-new vehicles, the majority of which are up to two years old and which have covered less than 15,000 miles. Motorpoint sells vehicles from brands representing over 95 per cent of new vehicle sales in the United Kingdom, with models from Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi and BMW being amongst the top sellers. The Group operates from 12 retail sites across the United Kingdom; Derby, Burnley, Glasgow, Newport, Peterborough, Chingford, Birmingham, Widnes, Birtley, Castleford, Oldbury and Sheffield of which five have opened in the last five years; together with a national contact-centre dealing with online enquiries.

More information is available at www.motorpointplc.com and www.motorpoint.co.uk.

 

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