Pre-tax profits rocketed 71% at used car supermarket group Motorpoint as it ramped up sales and won record levels of repeat business.
Its financial results to March 31 2018 show pre-tax profits reached £20 million, up from £11.7m, as the 12-site group grew turnover by 20.6% to £991.2m.
PBT excluding exceptional items related to a charge for prior years for a VAT assessment was 32.5% up at £20.8m.
Mark Carpenter, chief executive (pictured), said: “With our 12th site in Sheffield having opened in the year, we remain focused on the geographic expansion of our compelling, value oriented proposition and winning further market share.”
He said Motorpoint is committed to providing an exceptional service to customers and this could be seen in the record numbers of repeat customers it is welcoming back through its doors.
“Whilst we are mindful of the wider economic and political climate, thanks to our differentiated business model, we are well positioned to continue to grow and are confident about our prospects for the year ahead."
The report reveals that Motorpoint has set its team a challenge to make it the UK’s most admired retailer.
Carpenter said the “outrageous ambition” is being shared with its teams to build a shared vision of Motorpoint’s direction, and added the company has not restricted itself to how to measure this, or whether it can truly consider it accomplished.
Motorpoint’s board has committed to a new minimum pay rate, in line with the current Real Living Wage, and this was introduced to all teams in April.
It continues to invest in people development, it said, and promoted two long-serving employees to newly created roles of heads of operations, each responsible for six sites.
Stock levels advertised on its website averaged 6,700 units over the year, and repeat customer levels now represent 26.2% of total sales volume.
During the year Motorpoint increased its stocking facility with Black Horse by £5m to £70m, and secured a new £20m stocking facility with Lombard North Central.
Of the total £90m stocking finance, £69m was drawn at March 31, 2018.
On the outlook ahead, Carpenter added: “We have entered the year with a healthy and competitive stock mix, with each of our three strategic objectives performing well and we expect them to continue to do so this year: (i) our online sales move from strength to strength; (ii) our new sites are performing in line with our plans and are building pleasing impetus; and (iii) our existing estate continues to show market share growth against the latest available market data.”
- Turnover: £991.2m (FY17: £822.0m)
- Cost of sales: £914.8m (FY17: £759.8m)
- Profit before tax: £20.0m (FY17: 11.7m)
- Profit before tax and exceptional items: £20.8m (FY17: £15.7m)
- Cash flow from operations: £20.2m (FY17: £7.4m)