Motorpoint confirms return to profitability as retail volumes surge

Motorpoint has swung back to profitability, buoyed by a near 14% increase in retail vehicle sales and sharper operational execution.

The used car supermarket specialist indicated earlier this year that its Brilliant Basics operational efficiency plans would bring it back to profitability, after some challenging years for the business.

The group posted a £4.1 million profit before tax, a significant turnaround from a £10.4 million loss the previous year.

This recovery was fuelled by strong retail momentum, with 59,900 vehicles sold, up from 52,600 in FY24, and a data-led approach to pricing and stock management.

Gross profit rose 24% to £90.8 million, reflecting both higher volumes and improved margins.

Retail gross profit per unit climbed by £113 to £1,335, while wholesale margins also strengthened.

Revenue increased 8% to £1.17 billion, aided by consistent demand across both retail and wholesale channels.

Motorpoint also gained market share in the 0–6-year-old car segment, which rose to 2.37% over the year and peaked at 2.46% in the final quarter.

Despite high interest rates continuing to impact finance penetration, the business said it benefited from tight cost control, including energy and card fee savings.

The company had previously paused its plans to open new locations as it went through its operational review, but was able to push ahead with plans to open its new Norwich location at the end of last year.

Rightsizing the business and improving margin performance

Mark Carpenter, Motorpoint Group chief executive, said: "I am extremely pleased with our performance in FY25.

"Motorpoint has experienced several years of considerable economic headwinds that have hampered our industry.

"We responded in FY24 with our Brilliant Basics programme which rightsized the business and improved margin performance.

"This successfully laid the foundations for growth and in FY25 resulted in double digit year on year volume growth, significant gains in market share, faster stock turn, and a welcome return to profitability.

"I am also delighted that our customer NPS improved through the year, reaching record levels in the final quarter, and that we have been recognised as one of the Sunday Times’ best big places to work."

Carpenter said recent falls in interest rates are welcome, although they remain "relativley high", while supply of used stock continues to slowly improve, with more bulk deals available for newer stock.

He added: "We remain cautious while conditions for the consumer remain uncertain but are well placed to continue to grow profitably and outperform the market.

"This will allow us to continue to invest in our strategic objectives, and accelerate activity over time as conditions allow, in addition to returning excess capital to shareholders."