Motorpoint’s latest interim financial results have shown that the used car supermarket group generated 9.4% revenue growth in the six months to September 30.
Revenues for the period increased from £483.2m to £528.6m year-on-year at the UK’s largest used car supermarket group by turnover as profit before tax and exceptional items rose by 13.3% to £11.9m.
Including exceptional items, the group’s profit before tax soared from £9.7m to £11.9m.
Mark Carpenter, chief executive of Motorpoint Group PLC, said that the business had “delivered a good trading performance”, adding that its board was pleased with its “continued progress in spite of the challenging market backdrop”.
Mototpoint’s adjusted earnings per share increased 11.6% to 9.6p during the reported period, a financial report stated, as its gross margin to adjusted operating expenses ratio increased to 146% (H1 2017: 140%).
Highlighting its plans to open “several” new car supermarket sites, Motorpoint indicated that it had suffered no shortage of consumer appetite in recent months.
Repeat customer levels increased to 29.5% of total customers, up 25.1% year-on-year as the business’s Net Promoter Score settled at 74% (H1 2017: 77%).
Carpenter said: “In line with our site opening strategy we are in advanced discussions on several premises, we expect to be able to announce contractual completion for at least one of these in the near future.
“We are also excited about the opening of our new preparation centre in Peterborough, expected early in the new calendar year, which will increase the efficiency of the Group’s operations and maximise retail space at our neighbouring sites in Peterborough and Chingford.”
Carpenter said that the business had closed the period with a strong cash and balance sheet position, with operating cash conversion for the first half again over 100%.
Commenting on the launch of a further share buyback scheme, he added: “As such we are extending our buyback programme, with £10m earmarked for share repurchases over the forthcoming year.
“Current trading is consistent with market expectations for the full year. However, we remain mindful of the current political uncertainty and, as per Motorpoint’s normal seasonal trends, our fourth financial quarter is the most material of our full year’s performance.
“We believe that our unrivalled choice of nearly new vehicles and ongoing dedication to Choice, Value and Service positions us strongly to take advantage of any market disruption, and to continue to deliver as the Car Buyers’ Champion.”