Motorpoint announced in a trading update that it expects pre-tax profits for the year ending on March 31, 2023, to break even, in contrast to the £21.5m profit before tax it reported last year.
While higher interest rates and inflation will impact the company’s performance in the next fiscal year, Motorpoint is on track to achieve its target of £2bn in total sales and £1bn in e-commerce sales. Thanks to vehicle mix and price inflation, turnover is expected to reach approximately £1.43bn, a 9% increase.
Motorpoint plans to open its 20th store, in Ipswich, in May 2023, up from 13 locations three years ago.
Mark Carpenter, CEO of Motorpoint Group, commented, “This, coupled with continued market share gains and progress on our key initiatives, will enable Motorpoint to emerge from the current environment a highly profitable market leader.” The new car registration rate increased by 18% in March, benefiting the used vehicle supply with the fleet market driving the eighth consecutive growth month.
In March, Tom Tang became Motorpoint’s chief technology officer. Tang has over 20 years of experience in technology leadership and has previously held roles as CIO, Alliant Energy, CTO – Customer Experience, Sainsbury’s, and CIO, Argos.
