Motorpoint Group said car sales through its online channels over the past 12 months have exceeded expectations.
In a trade update on the London Stock Exchange this morning (April 8), the independent retailer said it had “prioritized investing” in its online channels and achieved a “solid” sales performance, although revenues for the year were down 29%.
The 10th most profitable dealer group in the UK – according to the list of the top 100 car dealers (which uses EBITDA as a benchmark) – sold 68,000 vehicles in the last fiscal year, including 25,000 wholesale units through its Auction4Cars.com business.
Of its retail sales, 52 percent were sold online, equivalent to more than 22,000 vehicles.
Motorpoint Group said it has prioritized investments in e-commerce by launching contactless collections, free door-to-door delivery service, a 14-day money-back guarantee and a fully digital parts exchange and finance offer.
The company said in the first three months of 2021 it sold 3,300 vehicles online, with all retail branches closed due to the lockdown, and e-commerce will continue to be a priority in the future.
Motorpoint is well positioned to take advantage of the continued shift of consumers towards online shopping, while continuing to access the currently larger in-branch market
In the update, Motorpoint Group said that Auction4Cars.com’s gross margin for the first three months of 2021 was around 7.5%, “significantly ahead” of the same period of the year. last (6.2%).
The group’s income for the year was 29% lower than the previous year, due to the pandemic and lockdowns, he said.
The group’s operating profit “reached general equilibrium in the second half of the year” and its balance sheet “remains strong, without structural debt, and net cash at year-end was around £ 6million”
Looking ahead, Motorpoint has said it expects to see pent-up demand when all sites in England, Wales and Scotland reopen, but Covid-19 will still have an impact on its business during the new exercise. Therefore, he believes that it is not prudent to publish future guidance at this time.
Mark Carpenter, CEO of Motorpoint, said: “Motorpoint continues to capture market share by delivering great value to our customers, combined with a wide choice of high quality vehicles and a strong customer focus.
“Our employees have been exemplary in their commitment to the company during the year, with team engagement scores peaking in the second half of the year. The continued safety of our employees and customers remains of the utmost importance as we prepare to reopen branches this month.
“I am delighted with the progress we have made in retaining and developing our technology and marketing teams during the bottlenecks. Our focus on growing our e-commerce and home delivery channels continued in the second half of the year with further milestones achieved.
“With our focus on innovation, along with our agile, low-cost operating model and the strength of our market-leading brand, Motorpoint is well positioned to take advantage of the continued evolution of consumers. towards online shopping, while continuing to access the branch market. ‘
Motorpoint has announced its intention to announce its preliminary results on June 16, 2021.