Motorpoint Group PLC (LSE:MOTR, OTC:MTPTF) shares fell as the car dealer cautioned supply chain challenges were putting pressure on production even as it posted record revenue and earnings per share.
Revenue rose to £1.32bn from £721.4mln in the year ended March 31, 2022, while pretax profit more than doubled to £21.5mln from £9.7mln.
Earnings per share soared 122.6% to 18.7p from 8.4p at the car retailer which has 17 sites across the UK.
Motorpoint said the record revenue was down to market share growth and vehicle price inflation.
E-commerce revenues increased by 43% to £624.9mln, with over 60% of overall unit volumes generated through online channels.
The retailer had earlier set a goal to increase e-commerce revenue to £1bn.
Motorpoint said it was a "very successful year, both in terms of delivering excellent operating results and progressing on its strategic objectives" but noted challenges and warned about rising inflation and worldwide vehicle supply chain challenges.
"In general, rising inflation is putting increasing pressure on discretionary spending power and consumer sentiment, and this position has worsened since the start of the new financial year," it said in a statement, adding this will reduce overall sales and transactions.
"Further, supply chain shortages will continue to limit new car production in the near term, which in turn constrains the supply of used cars that fit our nearly new criteria. The precise extent to which these factors will impact consumer behaviour and our markets is increasingly difficult to predict."
Shares were 6.87% lower at 210p in London.