Shares in Motorpoint Group PLC (LON:MOTR) fell by more than 20% on Wednesday after the used car supermarket said Brexit uncertainty would hit volume and margins performance in the first half of its financial year.
The group expects to see revenue growth of around 11% for the six months to September, underpinned by what it called a “positive like-for-like” performance, but said volume and margins performance would miss management expectations.
“Because of the uncertainty around the result of the EU referendum, management has invested in margin to protect the group's good level of stock turn, and managed its stock levels carefully,” the firm said.
“Accordingly, the volume and margin performance in the first half is behind original management expectations.”
Derby-based Motorpoint said early indications in the second half pointed to an improved trading performance in the second half of the year.
“With an improved contribution from the new site openings, good supply and an improving margin outlook, management foresees a stronger H2 weighting with net margins moving back to more normal levels.”
It added that the pipeline for potential new sites remains “encouraging”, with progress being made on a number of options.
Motorpoint will release its interims for the six months to the end of September on 29 November.
Shares were down 34p, or 21%, to 133p.