Motorpoint Group (MOTR) H1 2027 earnings summary

Executive summary

• H1 FY27 retail volumes rose 7.6% to a record 35.43k, outperforming 0.6% market growth; PBT increased 80.6% to £6.5m.

• Technology-led buying, pricing, allocation and marketing supported stronger unit economics and cost discipline.

• October retail volumes grew 9.7% YoY, with confidence in continued profitable market-share gains.

Financial highlights

• Revenue grew 6% and gross profit rose 11.9% to £55.4m; operating expenses increased 6.6% to £43.7m.

• Operating profit increased 38.8% to £11.8m; EBITDA rose 19.9% to £16.3m and PBT reached £6.5m versus £3.6m.

• Retail gross profit per unit increased to £1,431 from £1,349; metal margin per unit reached £1,266 from £1,063.

• Turnover per unit was £19,386 versus £19,667; customer acquisition cost fell to £143 from £149.

• Cash generated from operations was £17.1m; closing net debt excluding lease liabilities was £14.3m.

Outlook and guidance

• Medium-term targets include annual retail volumes above 120,000, 30–35 large-format stores, retail gross profit per unit above £1,550, EBITDA per retail unit above £550 and ROCE above 100%.

• FY27 expectations remained unchanged after September’s upgrade to market consensus; October retail volume grew 9.7% YoY.

• A mature new store is expected to sell ~4,000 units annually and contribute £3m PBT; modeled five-year IRR is 50.9%, with fit-out payback in 2.4 years.

• Inventory increased ahead of Q4; direct-consumer supply is growing, with self-sourced part-exchange and Sell Your Car stock exceeding 25% of retail stock.