Motorpoint Group (MOTR) Trading Update summary

Trading performance highlights

• Achieved 17% year-on-year retail volume growth in H1 FY25, reflecting strong demand and operational execution.

• Returned to profitability with expected profit before tax of approximately £2.0m, compared to a £3.7m loss in H1 FY24.

• Improved stock turn, reducing days in stock to 41 from 47 in the prior year period.

• Maintained net cash of £11.2m at period end, despite completing a £5.0m share buyback.

• 21st store set to open in Norwich in H2 FY25, supporting further growth.

Profitability and market conditions

• Easing macroeconomic headwinds and stable used car prices contributed to improved margins and customer sentiment.

• First interest rate cut in August supported profitability and coincided with highest retail volume since March 2022.

• Supply of used vehicles remains subdued, especially for newer models, but demand has increased.

• Operational excellence initiatives under the Brilliant Basics programme drove the return to profitability.

Share buyback and capital allocation

• Completed share buyback programme, repurchasing 3.6m shares (4% of issued capital) at an average price of 139.7p per share.

• Buyback completion enables further investment in organic, profitable growth opportunities.