Motorpoint delivered 6.8% turnover growth and 10% growth in profit before taxation and exceptional items in its 2018 annual financial results.
The ID50’s top used car supermarket by turnover grew its annual revenues to £1.06bn and pre-tax profits before exceptional items to £22.9m in the period to March 31, 2019, as it prepared to expand into the 13th site in its national retail network.
Chief executive, Mark Carpenter, said that he was pleased with the progress that has been made over the course of the year, which had led to the group achieving sales of over £1bn for the first time.
“We have continued to gain market share, thanks to our value-orientated, customer-friendly proposition which has resulted in a record number of repeat customers coming through our doors along with consistently high levels of customer satisfaction being reported,” he added.
“Our 13th retail site is expected to open in the second half of the current financial year and we are committed to bringing the Motorpoint brand closer to more people across the UK.
“The Group closed the year with a healthy cash position, thanks in part to our tight cost control and disciplined capital allocation.
“This has enabled us to deliver enhanced returns for our shareholders in the form of an increased dividend and continued buyback programme.
Motorpoint reported that its cash flow from operations were up £4.1m to £24.3m (FY18: £20.2m) as its operating cash conversion rose from 95% to 99%.
It also reported that its adjusted earnings per share had increased by 11.3% to 18.7p (FY18: 16.8p) during the reported period, adding that a total of £15.7m of cash had been returned to shareholders during the year through dividends and buyback programme.
Carpenter added: “In spite of what remains a challenging market backdrop, as has been well documented, we are well positioned at the beginning of the new financial year with a healthy and competitive stock mix.
“As a Group, we are confident about the opportunities ahead owing to the strengths of our people and our unique operating model, focused on delivering unrivalled Choice, Value and Service.”
Future growth fro Motorpoint will come from the creation of its 13th site, a development the group announced in interim results published during April.
The new facility is expected to open in H2 of this year.
To back up this additional growth in used car sales volumes, the group will also a new preparation centre in Peterborough. This is expected to open in H1 2020.
For the time being, the group showed signs that it is doing a good job of retaining is existing customers, however.
Its latest results reveal record levels of repeat custom, with returning clients increasing to 30% of its total, up from 26% in the previous financial year.