Motorpoint Group plc Full Year Trading Update and Notice of Results (7350B)
April 06 2017 - 1:00AM
UK Regulatory
TIDMMOTR
RNS Number : 7350B
Motorpoint Group plc
06 April 2017
6 April 2017
Motorpoint Group PLC
("Motorpoint" or the "Group")
Full Year Trading Update and Notice of Results
Trading in line with expectations
Motorpoint Group PLC, the UK's largest independent vehicle
retailer, is pleased to announce the following trading update ahead
of its final results for the year ended 31 March 2017 ("FY17").
Highlights
-- Turnover for the year of approximately GBP820m, an increase of 12.5% on FY16
-- The Board expects the Group's Profit Before Tax for FY17 to
be at the upper end of the range of current market expectations,
reflecting the improving trading performance in the second half
(see note 1).
-- The final quarter of the Group's financial year in particular
has seen increased customer footfall and online traffic, driving
improved volume performance both in like-for-like sales and sales
at new sites.
-- Management expect that the Group's two most recently opened
sites, at Castleford and Oldbury, have made a positive profit
contribution in the final quarter of FY17.
-- Gross margins per unit have strengthened and returned to a
normalised level in the second half.
New Sites
The second half of the year saw the Birtley site celebrate its
one year anniversary having opened in November 2015, and start its
contribution towards the Group's like-for-like performance.
The two new openings in the year, at Castleford and Oldbury,
have delivered an encouraging performance in the second half, with
the final quarter's results being particularly positive.
Outlook
There remains some macroeconomic uncertainty in the UK economy,
with the EU referendum result prompting ongoing customer caution,
and a more subdued new car market anticipated following last year's
record performance.
The Board is cautiously optimistic regarding the UK used vehicle
market and remains confident that Motorpoint's independent and
flexible model ensures the Group is well placed to continue to grow
market share.
The Group's 12(th) site is scheduled to open in Sheffield in
late April 2017, a key strategic market for management to expand
the Company's penetration across Yorkshire.
There remains a good pipeline of new site opportunities across
the UK.
Mark Carpenter, Chief Executive Officer, commented:
"We are pleased with our improved trading performance in the
second half of the year, with the business responding well
following the pricing actions of the first half, thereby driving
profit towards the top end of consensus range. We anticipate
continued growth in revenues and profits, with an encouraging
performance from our new sites.
"Motorpoint operates a compelling customer proposition and is
well placed to continue building on the competitive advantages of
its unique model. With four sites under three years old and our new
Sheffield site opening in April, we are excited about the Group's
prospects and look to the future with confidence."
Final Results
The Group will publish its final results for the year ended 31
March 2017 on 12 June 2017.
Enquiries:
Motorpoint Group plc via FTI Consulting
Mark Carpenter, Chief Executive
Officer
James Gilmour, Chief Financial
Officer
FTI Consulting (Financial
PR)
Jonathon Brill
Alex Beagley
James Styles 020 3727 1000
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
Notes:
1. The Board believes current market forecasts for adjusted
profit before tax to be in the range of GBP14.6m to GBP15.5m, with
a consensus of GBP15.0m.
Notes to editors
Motorpoint is the largest independent vehicle retailer in the
United Kingdom. The Group's principal business is the sale of
nearly-new vehicles, the majority of which are up to two years old
and which have covered less than 18,000 miles. Motorpoint sells
vehicles from brands representing over 95 per cent. of new vehicle
sales in the United Kingdom, with models from Ford, Vauxhall,
Volkswagen, Nissan, Hyundai, Audi and BMW being amongst the top
sellers. The Group operates from 11 retail sites across the United
Kingdom; Derby, Burnley, Glasgow, Newport, Peterborough, Chingford,
Birmingham, Widnes, Birtley, Castleford and Oldbury, of which six
have opened in the last five years; together with a national
contact-centre dealing with online enquiries.
More information is available at www.motorpointplc.com and
www.motorpoint.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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