Second-hand car sales at the Motorpoint dealership group topped £1.44 billion in the year to March 31, up almost 9 per cent on the previous year. The business said the growth came thanks to rising car prices as the number of vehicles it sold was actually down 8 per cent at 89,700.
The Derby business said it was helped by its share of the market for newish second hand cars growing from 3.1 to 3.5 per cent. It said it was also winning more custom from buyers living within 30 minutes of its sites. Meanwhile, online sales were up almost 6 per cent at £660.5 million.
However, the business said it saw pre-tax profits of £21.5 million in 2022 drop to a loss of £300,000 – down to factors such as higher financing costs, limited stock availability, a fall in the value of electric vehicles and increased investment of £6.1 million into the business.
In the past year-or-so Motorpoint has added new locations in Edinburgh, Coventry and Ipswich, taking the total to 20 stores.
Chief executive Mark Carpenter said: “Having recently celebrated our 25th anniversary, I have been reflecting on the group's performance and our journey to date.
“FY23 was marked by record revenues and further strategic investments as we endeavour to provide customers across the UK a seamless car buying experience.
“This investment is thus far delivering good results and has positioned the Group better for the future.
“This allows us to pause the level of ongoing investment, given the current consumer and macro environment, while enjoying the efficiencies we have now built into the business and continuing to deliver on our growth strategy within the market constraints.
“Whilst the impact of higher interest rates and inflation will continue into FY24, new car registrations have been steadily increasing, with the fleet market driving much of the growth, which will in turn benefit used vehicle supply.
“This, coupled with continued market share gains and progress on our key initiatives, will enable Motorpoint to emerge from the current environment in a strong position to more aggressively pursue profitable market leadership.”
