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RNS Number : 7486U
Motorpoint Group plc
08 April 2021
8 April 2021
Motorpoint Group PLC
("Motorpoint" or the "Group")
Full Year Trading Update and Notice of Results
Accelerated digital investment drives strong online revenue
growth through lockdown
Motorpoint Group PLC, the UK's leading independent omni-channel
vehicle retailer, provides the following update on its trading
performance for the year ended 31 March 2021 ("FY21").
Highlights
-- 68,000 vehicles sold in the year, including 25,000 via the Group's Auction4Cars.com platform
-- E-commerce investment prioritised, and results exceeded the Board's expectations
-- 52% of retail sales were sold online, over 22,000 units, with 3,300 sold in March alone
-- Q4 (Jan-Mar 2021) online sales grew 89% against prior year, with Home Delivery 57% of this
-- Balance sheet remains robust with no structural debt, and net
cash at the year-end was c.GBP6m
-- H2 Net Promoter Score (NPS) of 83
-- Employee Engagement at record levels
The Group delivered a robust volume performance in the period,
underlining the strength of Motorpoint's omni-channel model and in
particular, the momentum and potential of its online channel.
68,000 vehicles were sold, including 25,000 wholesale units through
Auction4Cars.com. Of the retail sales 52% were sold online (over
22,000 units), retaining our position as the number one retailer of
nearly new cars in the UK, both online and offline.
The Group has prioritised investment in E-commerce, launching
contactless collections, a free Home Delivery service, a 14-day
money back guarantee and, most recently, a fully digital part
exchange and finance offering enabling customers to complete their
purchase process entirely online. These initiatives build from a
strong history of online sales and previous investment in
automation and data utilisation. In the first three months of 2021,
when all retail branches were closed, online sales grew 89% against
the equivalent period last year, with Home Delivery contributing
57% of this. In March alone, 3,300 units were sold online. The
results from our accelerated investment to date have exceeded the
Board's expectations and E-commerce will continue to be our
priority moving forward.
The Group is utilising the strong footprint of existing retail
locations to act as spokes for distribution and collection
nationwide, enabling same day in-branch collection and next-day
home delivery. Motorpoint serves all car buyers, whatever their
location, and whether they wish to buy online, in-person at our
branches or through a combination of both channels. Motorpoint
customers are delighted with the unrivalled choice, value, service
and quality they receive, underlined in our recent Net Promoter
Score (NPS) of 83 in H2.
Auction4Cars.com, the UK's leading E-commerce vehicle auction
service sells wholesale vehicles outside Motorpoint's retail
criteria and provides valuable insight into vehicle values. Gross
margin for the first three months of 2021 was c.7.5%, substantially
ahead of the same period last year (6.2%).
Group revenues for the year were 29.0% lower compared to the
previous year, as a consequence of the COVID-19 pandemic and
Government imposed lockdowns. Group operating profit broadly broke
even in the second half, despite all retail branches being closed
for over four of the six months of the period (representing 67%
closure across the estate). The Group's balance sheet remains
robust with no structural debt, and net cash at the year-end was
c.GBP6m.
Outlook
In line with the Government's roadmap, the Group's retail
branches in England and Wales are scheduled to fully re-open on 12
April, and on 26 April in Scotland, and the Board anticipates
pent-up consumer demand upon re-opening. The Board also expects
growing momentum for its E-commerce, Home Delivery and Reserve and
Collect services as consumer buying habits evolve. The accelerated
expansion of our E-commerce offering, coupled with new sales and
collection branches provides the Board with a high level of
confidence in the Group's potential to gain further market
share.
Nevertheless, the Board expects that the impact of COVID-19 will
continue to influence events in the new financial year, and given
this uncertainty, believes it prudent to refrain from offering
future guidance at this time. The position is under constant
review, and an update will be provided when appropriate to do
so.
Preliminary Results
The Group expects to announce its Preliminary Results for the
year ended 31 March 2021 on 16 June 2021.
Mark Carpenter, CEO of Motorpoint, said:
"Motorpoint continues to take market share by offering great
value to our customers, combined with a huge choice of high quality
vehicles and a strong customer service focus. Our employees have
been exemplary in their commitment to the business during the year,
with team engagement scores reaching their highest level in the
second half of the year. The continued safety of our employees and
customers remains of utmost importance as we prepare to re-open
branches this month.
I am delighted at the progress we have made by retaining and
growing our Technology and Marketing teams during the lockdowns.
Our focus on growing our E-commerce and Home Delivery channels
continued in H2 with further milestones achieved. Thanks to our
focus on innovation, along with our low-cost, agile operating model
and market leading brand strength, Motorpoint is well positioned to
take advantage of the continued shift of consumers to purchase
online, whilst also continuing to access the currently larger
in-branch market."
Enquiries:
Motorpoint Group PLC via FTI Consulting
Mark Carpenter, Chief Executive
Officer
Chris Morgan, Chief Financial
Officer
FTI Consulting (Financial PR)
Alex Beagley
James Styles
Sam Macpherson 020 3727 1000
Notes to editors
Motorpoint is the UK's leading independent omni-channel vehicle
retailer, selling through its E-commerce platforms of
Motorpoint.co.uk and Auction4Cars.com and 14 retail branches. The
Group's principal business is the sale of nearly-new vehicles, the
majority of which are up to two years old and have covered less
than 15,000 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 14 retail branches across the United Kingdom:
Birmingham, Birtley, Burnley, Castleford, Chingford, Derby,
Glasgow, Newport, Oldbury, Peterborough, Sheffield, Stockton on
Tees, Swansea and Widnes, of which six have opened in the last five
years; together with E-commerce channels for retail and trade,
supported by a customer contact centre.
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