Shares in Motorpoint Group PLC (LSE:MOTR, OTC:MTPTF) rose 13% after the car retailer announced a return to profitability in its half-year results and provided an optimistic outlook for the remainder of the year.
The company reported a pre-tax profit of £2 million for the six months ending September 30, a significant turnaround from a £3.7 million loss in the same period last year.
Motorpoint attributed the improvement to a 17.4% increase in retail vehicle sales and better gross profit margins, driven by improved stock management and data-led pricing.
While revenue fell 7% to £563.1 million due to lower vehicle prices, overall gross profit rose by £7 million to £44.7 million.
The company noted a stabilising market for used car prices and expects economic pressures, such as high interest rates, to ease.
It also highlighted strategic growth initiatives, including store expansions, digital enhancements, and improved operational efficiencies.
The stock motored 14.75p to 132p.