Motorpoint has said that it is “ideally positioned to continue its market share growth” after delivering a 64% increase in profits before tax and exceptional items and an 18% rise in revenues in its interim results.
The car supermarket, which specialises in the sale vehicles of up to two years old and which have covered less than 15,000 miles from 12 sites across the UK, reported PBT after exceptionals of £10.5 million and revenues of £483.2 million for the six month period to September 30.
As cash flow from operations before exceptional items increased to £20.5m (2016: £12.5m) the retail group also announced the start of a share buyback scheme which Motorpoint Group PLC chief executive, Mark Carpenter, said had been made possible “due to the Group’s robust balance sheet position and cash generative business model”.
The six month period to the end of September included the opening of Motorpoint’s 12th retail site in Sheffield in April.
During the period the group reported that it had seen a 20.5% increase in repeat customers and achieved a Net Promoter Score performance of 77% (FY17 H1: 75%).
The group’s growth ambitions were further bolstered by the bolstering of its stocking facilities by a £5m extension to £70m in September 2017.
As of 30 September 30 the group’s cash position was £21.4m which, including its banking facilities with Santander, provided headroom of £41.4 million.
Commenting on the results, Carpenter said: “The Group has delivered a strong first half of the financial year with significant increases across all KPIs.
“The new sites that have opened in the last two years continue to deliver an improving performance as they gain awareness in their local markets and increase our share in the nearly new market.
“The second half has started well and the Group’s resilient business model and focus on delivering choice, value and service leaves it ideally positioned to continue its market share growth of nearly new car sales.
“Whilst market conditions are always subject to external changes, the supply of stock coming into the business remains good and management are comfortable with the Group’s trading performance so far in H2.
“The Board is therefore confident of delivering full year results in line with market expectations.”
Motorpoint now has sites in Derby, Burnley, Glasgow, Newport, Peterborough, Chingford, Birmingham, Widnes, Birtley, Castleford, Oldbury and Sheffield.
Its Castleford and Oldbury sites reached their first anniversary in the reporting period and are both delivering “an encouraging performance”, according to the group’s statement.
The group also operates Auction4Cars.com, a business to business online auction platform for vehicles acquired through the Group's part-exchange offering which do not qualify for retail sale as they are outside of the Group's target vehicle age or mileage.