Motorpoint Group PLC (LON:MOTR) said it has faced “unusually” high pressure on margins but the most important months of its trading year are still to come, with expectations unchanged for now despite uncertainty clouding the road ahead.
The company, which sells used cars up to two years old, said in its interim results it has been gaining market share despite lacklustre consumer confidence, with the early summer months the worst hit for margins.
READ: Motorpoint ticks up as it surpasses £1bn in sales for the first time
Analysts noted the company’s fourth quarter, the three months to March, make up for 40% profits and leaving it susceptible to political events.
Motorpoint said it will look to take advantage of market disruption, although the outcome of Brexit negotiations could influence its future in “unpredictable” ways.
For the six months to 30 September the car retailer posted £534mln revenue, 1% higher than the same period last year, while pre-tax profit dropped 18% to £9mln.
The latter was hit by overheads £2mln higher than last year, half of which is set to recur from the second half onwards.
Founder retires
Motorpoint also announced on Thursday the departure of founder David Shelton, who will retire as a non-executive director on 31 December.
Shelton, who stepped down as executive director last year, grew the company from one site in Derby in 1998 to a 12-strong estate across the country.
Liberum said: “Trends have continued as per Q2, with Motorpoint taking share in a subdued demand environment. Gross margins are holding up and cost inflation should be lower in H2 than in H1.”
The shares were up 2% to 261.88p on Thursday morning.