Motorpoint Group (MOTR) H1 2025 earnings summary

Executive summary

• Achieved double-digit retail unit growth of 17.4% in H1 FY25, returning to profitability with a £2.0m profit before tax after prior losses, driven by improved gross margins, cost control, and digital initiatives.

• Market share for 0-6 year old vehicles rose to 2.5% (up 50 bps), with strong outperformance versus peers and increased digital engagement.

• Customer acquisition cost per unit reduced by 25.8% to £147, and customer NPS remained high at 77.

• Strategic investments resumed, including new store openings, digital enhancements, and a £5m share buyback, supported by a robust cash position.

• Macroeconomic headwinds eased, used car prices stabilized, and customer sentiment improved.

Financial highlights

• Retail units sold grew 17.4% year-over-year to 30.3k, with total units up 10% to 43.3k.

• Gross profit increased 19% to £44.7m, with gross margin rising to 7.9% (H1 FY24: 6.2%).

• Returned to profitability with a £2.0m profit before tax in H1 FY25, a £6.7m improvement from a £4.7m loss last year.

• Net cash position stable at £11.2m after a £5m share buyback; stock turn improved to 41 days from 47.

• Operating expenses rose to £38.6m due to increased headcount and wage inflation.

Outlook and guidance

• Strong trading momentum continued into H2 FY25, with October retail volume growth of 27% and ongoing profitability.

• Profitability and cash generation expected to grow, with supply of nearly new vehicles improving and moderate interest rate reductions anticipated.

• Macro pressures from interest rates and inflation persist but are expected to ease.

• No material adverse impact expected from recent finance commission regulatory changes.