TIDMMOTR
RNS Number : 3890U
Motorpoint Group plc
23 November 2023
23 November 2023
Motorpoint Group PLC
("Motorpoint" or the "Group")
Interim Results
Positioned to navigate continued market challenges, whilst
building strategic capabilities to lead in market recovery
Motorpoint Group PLC, the UK's leading independent omnichannel
vehicle retailer, today announces its unaudited interim results for
the six months ended 30 September 2023 ("H1 FY24").
H1 FY24 Financial Summary
Financial KPIs 6 months 6 months Change 12 months
to 30 September to 30 September to 31 March
2023 2022 2023
Revenue GBP607.2m GBP786.7m -22.8% GBP1,440.2m
----------------- ----------------- --------- -------------
Gross profit GBP37.7m GBP48.7m -22.6% GBP85.7m
----------------- ----------------- --------- -------------
Operating expenditure GBP(36.1)m GBP(42.8)m -15.7% GBP(79.2)m
before exceptional items
----------------- ----------------- --------- -------------
Operating profit before GBP1.6m GBP5.9m -72.9% GBP6.8m
exceptional items
----------------- ----------------- --------- -------------
Finance expense GBP(5.3)m GBP(2.9)m +82.8% GBP(7.1)m
----------------- ----------------- --------- -------------
(Loss) / Profit before GBP(3.7)m GBP3.0m -GBP6.7m GBP(0.3)m
taxation and exceptional
items
----------------- ----------------- --------- -------------
Exceptional items GBP(1.0)m nil +GBP1.0m nil
----------------- ----------------- --------- -------------
(Loss) / Profit for GBP(3.5)m GBP2.4m -GBP5.9m GBP(0.6)m
the period
----------------- ----------------- --------- -------------
Basic (loss) / earnings
per share (p) (3.9)p 2.7p -6.6p (0.7)p
----------------- ----------------- --------- -------------
Net cash GBP11.2m GBP4.5m +GBP6.7m GBP5.6m
----------------- ----------------- --------- -------------
-- Revenue decreased to GBP607.2m (H1 FY23: GBP786.7m),
influenced by market headwinds. Retail volumes declined by 18.4%
and wholesale volumes by 22.4% as more stock was sourced direct
from consumers and sold through retail channels
-- Gross profit decline driven by lower volumes and fall in finance commissions
-- Successful right-sizing programme leading to material
reductions in the cost base, including staffing and marketing
efficiencies
-- Increase in finance expense reflecting significant interest rate rises in the period
-- Exceptional items relate to one-off costs to effect the right-sizing programme
-- Strong improvement in cash, despite lower profitability,
which reflects working capital management and reduced capital
investment. Bank facility undrawn at period end
H1 FY24 Operational and Strategic Highlights
Operational KPIs 6 months 6 months Change
to 30 September to 30 September
2023 2022
Market share (0-5 year old) 2.5 % 2.7 % - 0.2 ppts
----------------- ----------------- -----------
Revenue GBP607.2m GBP786.7m -22.8%
----------------- ----------------- -----------
Retail GBP509.8m GBP653.1m -21.9%
----------------- ----------------- -----------
Wholesale GBP97.4m GBP133.6m -27.1%
----------------- ----------------- -----------
E-commerce revenue GBP224.3m GBP350.6m -36.0%
----------------- ----------------- -----------
Vehicles sold 39.3k 49.0k -19.8%
----------------- ----------------- -----------
Retail 25.8k 31.6k -18.4%
----------------- ----------------- -----------
Wholesale 13.5k 17.4k -22.4%
----------------- ----------------- -----------
Days in stock 47 50 -3 days
----------------- ----------------- -----------
Retail gross profit per unit GBP1,267 GBP1,373 -GBP106
----------------- ----------------- -----------
Wholesale gross profit per GBP370 GBP304 +GBP66
unit
----------------- ----------------- -----------
Customer acquired vehicles
retailed 2 4.2% 2 2.6% + 1.6ppts
----------------- ----------------- -----------
Customer acquisition cost GBP198 GBP250 -GBP52
per retail unit (1)
----------------- ----------------- -----------
Number of market locations
at period end 20 19 +1
----------------- ----------------- -----------
Stocking facility available GBP195.0m GBP195.0m -
at period end (2)
----------------- ----------------- -----------
(1) Total marketing cost per retail unit sold
(2) Reduced to GBP175.0m in October 2023
Operating margin enhancement programme
-- Market challenges, including elevated interest rate
environment and reduced consumer demand, required decisive action
to right-size the business to withstand a potentially extended
depressed market
-- The Group prioritised improving unit metal margins, reducing
operating costs and generating cash rather than pursuing continued
market share growth
-- Actions included increasing retail margins supported by the
use of data to optimise selling prices, reducing purchase fees by
securing a greater proportion of stock through direct supply
channels, streamlining our organisational structure, pausing new
store roll-out and reducing discretionary capital spend
-- Progressive reduction in headcount of 12% during H1 FY24,
supported by use of automation to drive efficiency
-- Our agile sourcing model allowed us to expand vehicle age and
mileage criteria to offer lower price points to meet broader
customer demand
Focused investment in digital capabilities
-- Investment focused on tangible improvements to our website,
enhancing customer experience and information availability
-- Record organic traffic levels and website speed improvement of greater than 30%
-- Automation benefits, including: a portal to simplify vehicle
handovers; a new open banking solution for faster payment and
reduced bank fees; simplified Auction4Cars buying and financing;
and email alerts to customers when their car of choice becomes
available
Market expansion
-- Opened our Ipswich store, taking the total number to 20
-- Continue to review pipeline of opportunities and will be
ready to react when market conditions improve
Stakeholder excellence
-- Net Promoter Score ('NPS') of 81 exceeds pre-Covid levels, and remains industry leading
-- Continued excellent progress against ESG objectives. During
the period, the business was recognised by the Financial Times as a
leader in climate change across European business sectors
Outlook
The impact of high inflation, interest rates, and consumer
uncertainty continues to affect demand for used cars.
This is impacting the value of used cars, which has fallen since
the end of the period, with a reduction in wholesale values of c.6%
in just the last six weeks. Whilst we have taken proactive measures
to limit the impact on our stock, the current environment is likely
to be volatile as new car supply into the used car market begins to
increase. Our lean cost base means that we are well placed to
weather this period and the correction in values bodes well for
next year and beyond as the used car market begins to
normalise.
Key elements of a normalised market are already underway,
including an easing interest rate environment, continued
corrections in used car values, and an increase in market size as
demand grows and supply is bolstered by new car registrations
feeding into the used segment. Motorpoint is a leaner and more
agile business, and is ready to seize the significant growth
opportunity as market conditions improve.
Mark Carpenter, Chief Executive Officer of Motorpoint Group PLC
commented:
"I have been at Motorpoint for twelve years and the agility and
resilience of our business model is something of which I am
immensely proud. We have no structural debt, a flexible business
model, a fantastic team and a tremendous opportunity ahead to
achieve significant cash generation in the medium term following
the actions of the past twelve months. Our focus on improving unit
economics has been successful, although volumes remained
challenging in the period.
The rapid fall in used car values since the period end is
unquestionably a near term challenge, however it also provides
reassuring signs of supply finally beginning to improve in the
nearly new market that we have dominated in the past. I believe
next year will be a key turning point for the market and I look to
the future with confidence."
Enquiries:
Motorpoint Group PLC via FTI Consulting
Mark Carpenter, Chief Executive
Officer
Chris Morgan, Chief Financial
Officer
FTI Consulting (Financial
PR)
Alex Beagley 020 3727 1000
Harriet Jackson
Amy Goldup
Forward looking statements: The information in this release is
based on management information. This report includes statements
that are forward looking in nature. Forward looking statements
involve known and unknown risks, assumptions, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Group to be materially different from any
future results, performance or achievements expressed or implied by
such forward looking statements. Except as required by the Listing
Rules and applicable law, the Company undertakes no obligation to
update, revise or change any forward looking statements to reflect
events or developments occurring after the date of this report.
Notes to editors
Motorpoint is the UK's leading independent omnichannel vehicle
retailer, focused on giving retail and trade customers the easiest,
most affordable and seamless way of buying, selling and financing
their car whether online, in-store or a combination of both.
Through its leading B2C platform Motorpoint.co.uk and UK network of
20 stores, the Group provides an unrivalled offering in the nearly
new car market, where consumers can effortlessly browse, buy or
finance their next car and collect or have it delivered directly to
their homes. Motorpoint's purely online wholesale platform
Auction4Cars.com sells vehicles into the wholesale B2B market that
have been part exchanged by retail customers, or purchased directly
from them by the Group as part of its online car buying service.
Motorpoint's diversified business model, underpinned by its
established brand, industry leading technology and sophisticated
marketing infrastructure, always delivers the best choice, value,
service and quality for customers. The Group is proud to have been
recognised for nine consecutive years as one of the Top 100 Best
Companies to Work For.
Non-Executive Chair's statement
Strategic Opportunity
In June 2021 Motorpoint announced a departure from its historic
approach by more aggressively embracing the role of technology and
digital services in its business and setting forth more ambitious
medium term goals to at least double its revenue to over GBP2bn by,
among other things, g rowing its E-commerce revenue to over GBP1bn
and opening 12 new stores. Reaching these goals would require
higher levels of investment in new capabilities including
technology and automation, data and analytics, digital commerce,
marketing, new sales and service branches and its omnichannel
customer proposition.
Since this announcement, in spite of the significant economic
challenges affecting the used car market and Motorpoint in
particular, the Company has progressed towards its goals by hiring
key strategic leaders, developing new technologies and digital
capabilities, and refining its strategy to include specific further
capabilities that will position Motorpoint uniquely in the market.
With this progress our belief in the strategic direction and the
size of our opportunity has grown.
The use of digital services is becoming universal amongst car
buyers and sellers. This natural progression presents an
opportunity for retailers to disintermediate portions of the used
car market by selling direct to consumers through a lower cost,
higher service model, by buying direct from consumers or via new
online marketplaces, and by building brand leadership and market
share through aggressive marketing. However we have learned, based
on our customer data, that some degree of physical connection
continues to be preferred by most customers to provide reassurance
and trust in the transaction. Motorpoint, as a leading omnichannel
retailer, is uniquely positioned to serve this need and is
developing integrated consumer journeys across its digital, store,
customer service and delivery channels that will meet changing
consumer needs. This is Motorpoint's central strategic
opportunity.
Underpinning Motorpoint's new capabilities will be contemporary
technology and data practices. These will not only create unique
cross-channel customer journeys, but will improve efficiency in our
key processes such as selling, vehicle preparation, logistics,
pricing and inventory turnover.
Leading With Agility and Responsibility
With its focus on the long term strategic growth opportunity,
Motorpoint has faced very difficult markets which have challenged
its near term performance and investment capacity. In Motorpoint's
2022 financial year (FY22), the Covid pandemic was over however
supply chain shortages continued to limit the manufacturing of new
vehicles, used car prices were inflated due to constrained supply,
and consumer confidence was declining as consumers began feeling
the effects of general inflation and rising interest rates.
Motorpoint performed strongly in that year with record revenue,
growth in market share and strong operating profit. While many in
the market were cautious, Motorpoint recommitted to its ambition to
lead the UK's used car market by investing in new capabilities,
digitally-driven customer experiences and new stores.
During FY23, economic and market conditions deteriorated
further, especially in the second half. Rising inflation and
interest rates, coupled with constrained used car supply, inflated
prices and a significant OEM-induced cut in used electric vehicle
values, made trading particularly challenging. Further, high
interest rates affected several components of our profit model.
High consumer finance rates reduced consumer demand and pinched
unit profitability, Motorpoint's finance commissions reduced as it
tried to hold consumer rates below market, and its finance expense
on inventory borrowings increased. In the face of these challenges
Motorpoint continued to make prudent strategic investments in order
to progress towards its strategic ambition while attempting to
remain profitable and preserve cash. Motorpoint's operating profit
fell, its net profit before tax was roughly breakeven while it
managed to again grow revenues and market share.
As the company approached FY24, it believed that economic and
market conditions would not improve and indeed could worsen further
with no end in sight. Early period performance proved this out with
high interest rates accounting for c.GBP8m of negative profit
impact in the first six months. The Company reacted swiftly to
implement a right-sizing and margin improvement programme with an
aim to preserve profitability and cash in a smaller, persistently
difficult market. It prioritised increasing unit margins, reducing
operating expenses and generating cash over revenue and market
share growth. It also tempered strategic investments and focused on
efficiency, trading effectiveness and near term returns.
I am pleased that Motorpoint has been agile and resilient
through a tumultuous period and made sound decisions based on
changing market conditions. It has also remained committed to its
strategic plan in a manner that balanced its investments
responsibly. Since FY22 it has invested over GBP10m in new
strategic capabilities and brought substantial new technology,
digital, marketing and operational expertise into the business.
Motorpoint has positioned itself to return to profitability by year
end, and progress modestly toward building strategic capabilities,
even as current poor conditions persist. As market conditions
improve Motorpoint will be in position to accelerate its strategic
plans and lead the growth of the used car market.
I would like to thank the Motorpoint team for their
extraordinary contributions over an extended period. I look forward
to a positive future for the Company and all of our colleagues.
John Walden
Non-Executive Chair, Motorpoint PLC
23 November 2023
Chief Executive's statement
Overview
The headwinds we experienced in FY23 continued in H1 FY24, and
these difficult macroeconomic conditions therefore hampered our
growth and profitability. As a result, we took action to right-size
the business to reflect the reduced market size and ensure cash
generative trading at lower levels of Group sales.
Some of these actions included increasing retail margins,
supported by improved data analysis to optimise selling prices,
reducing auction fees by securing a greater proportion of stock
through direct supply channels, streamlining our organisational
structure, pausing new store roll-out and reducing discretionary
capital expenditure.
High interest rates and inflation continued to fuel consumer
uncertainty in the H1 period, and the market for our 0-4 year old
sector fell further to 1.48m sales per annum, from a pre Covid high
of 2.45m. Consequently, total revenue fell to GBP607.2m (H1 FY23:
GBP786.7m), and retail units sold to 25.8k (H1 FY23: 31.6k).
Although supply is easing, there remains a shortage of good
quality, nearly new vehicles. In addition, the high market prices
and APR rates have reduced affordability for consumers. To
counteract this, we expanded our retail criteria to cars less than
five years old and 50,000 miles towards the end of the period, to
help customers find the right vehicle in accordance with more
constrained household budgets.
Reduced retail volumes, pressure on finance attachment rates due
to high APRs, and high interest expense, resulted in a drag on
profitability, and the business returned a loss before taxation and
exceptional costs of GBP(3.7)m (H1 FY23: Profit before taxation
GBP3.0m). As a consequence of actions taken, the loss before
taxation and exceptional items of GBP(3.1)m incurred in Q1 narrowed
to a small loss of GBP(0.6)m in Q2. Exceptional costs were GBP1.0m
(H1 FY23: GBPnil) and related to the headcount right-sizing
programme.
During the period, we prioritised protecting profit and cash.
Helped by use of improved data analysis, we were able to improve
unit margins and we also increased A4C fees (but still below the
market norm). We also right- sized our headcount to reflect the
lower volumes and reduced marketing costs. FTEs at 30 September
2023 were 693, significantly down from the high of almost 950 in
the early part of FY23. Marketing spend in H1 FY24 was GBP5.1m (H1
FY23: GBP7.9m), although this reduction is likely to have impacted
sales to some extent.
Despite the profitability pressures, the Group again
demonstrated its resilience to record a cash increase in the period
of GBP5.6m, up to GBP11.2m. There is significant cash headroom,
with the GBP35m bank facility undrawn at period end (GBP6m
available as an uncommitted overdraft and GBP29m as a revolving
credit facility).
Strategy Update
We have made good progress against our strategic targets
announced in June 2021. Despite the current market challenges, we
remain committed to our long term growth aspirations, whilst
focusing in the short term on margin improvement, cost base
management and cash generation. The strong cash position allowed us
to continue making targeted strategic investment, with further
improvements in technology involving both our retail and wholesale
businesses, and we opened our 20(th) store, in Ipswich, in May
2023.
During H1 FY24, we continued to enhance our digital capability,
and upscale our E-commerce offering. We made improvements to the
website Product Detail Pages (PDPs) and introduced new imagery.
These changes improved page views and the time customers spend on
our site. Saved search and recommendation functionality was
introduced. Email alerts are now in place to inform customers when
the vehicle they are looking for has arrived. We experienced record
levels of organic traffic, and website speed improved by over 30%,
whatever the device used.
The Group's use of data is fundamental to how we operate. As
well as helping to inform vehicle pricing decisions, it supports
the identification of what vehicles customers desire. As an
example, it allowed us to identify that new customers are more
likely to buy cheaper vehicles than returning ones, and this helped
inform our decision to expand our retail criteria to five years and
50,000 miles.
As mentioned previously, our capability was further enhanced
with the introduction of Tom Tang, who joined Motorpoint as Chief
Technology Officer in March of this year. Tom has over 20 years of
experience in technology leadership from his roles as CIO at
Alliant Energy, Sainsbury's and Argos. Tom is an advocate of the
benefits of AI capabilities which benefit both the customer and
employee. Since joining, Tom has been progressing three key
fronts:
-- Improving Motorpoint's customer experiences with the creation
of a Single Customer View (SCV) and integrated Customer
Relationship Management (CRM) platform;
-- Automating back office functions, such as finance and
procurement, with an Enterprise Resource Planning (ERP) platform;
and
-- Improving delivery cadence with the creation of a near shore
technology team and using common off the shelf (open source)
platforms.
By recruiting top talent and harnessing the benefits of
automation we have been able to continue to deliver operational
improvements, from preparation speed and reduced stockholding to
customer self-serve technology. Automation has also allowed us to
reduce headcount and improve efficiency.
Customers
As we innovate our omnichannel customer experiences, our highly
engaged team continued to deliver our market leading proposition of
Choice, Value, Service and Quality to our loyal customers with an
unerring focus on customer satisfaction. Our NPS for sold vehicles
remains high at 81. The slight fall from the record 84 is in part
explained by the disruption during the summer caused by the
redundancy exercise, but still remains at a higher level than
before Covid, and is leading for the industry.
Our Team
Our operating model of how our employees and stakeholders
interact, the Motorpoint Virtuous Circle, combined with our Values
of Proud, Happy, Honest and Supportive continue to provide a robust
framework for explaining how we get things done and what factors to
consider when decisions are required.
We believe that the engagement of our team is directly
correlated to our customer satisfaction, and we sponsor multiple
initiatives to enhance their experience with Motorpoint. Our 'One
Big Dream' initiative has been a huge success, with our people
using two paid hours per month for their own fulfilment. Team
retention levels improved by 11% since the start of the calendar
year.
Our One Team ethos was perfectly highlighted recently when the
Derby store was badly flooded as a result of Storm Babet. This
resulted in significant disruption for employees and customers, and
required a major clean-up operation. I am very proud of our
employees from across the business (whether it be from the office,
other locations or the Derby store itself) who all pulled together
to ensure that the site was up and running again as soon as
possible, and that customers were not left disappointed.
Environmental, Social and Governance (ESG)
The Group's ESG Committee has been instrumental in setting out
appropriate ESG targets. The Group wants to be viewed as the most
environmentally friendly used car retailer and has made significant
progress on its ESG strategic goals in the period.
We are delighted that our progress was recognised by the
Financial Times naming Motorpoint as one of Europe's Climate
Leaders, who are most successful in reducing their core greenhouse
gas emissions. We have championed our commitment to energy
management through internal communication channels.
We have made further reductions in energy savings; Scope 1 and 2
emissions and business travel are down c.10% versus the previous
period. Waste collection costs are down c.14%, and less than 0.2%
waste went to landfill.
We also have made further improvements to support inclusion and
remove unconscious bias, and our gender pay gap has again
reduced.
Outlook
The impact of high inflation, interest rates, and consumer
uncertainty continues to affect demand for used cars.
This is impacting the value of used cars, which has fallen since
the end of the period, with a reduction in wholesale values of c.6%
in just the last six weeks. Whilst we have taken proactive measures
to limit the impact on our stock, the current environment is likely
to be volatile as new car supply into the used car market begins to
increase. Our lean cost base means that we are well placed to
weather this period and the correction in values bodes well for
next year and beyond as the used car market begins to
normalise.
Key elements of a normalised market are already underway,
including an easing interest rate environment, continued
corrections in used car values, and an increase in market size as
demand grows and supply is bolstered by new car registrations
feeding into the used segment. Motorpoint is a leaner and more
agile business, and is ready to seize the significant growth
opportunity as market conditions improve.
Mark Carpenter
Chief Executive Officer
23 November 2023
FINANCIAL REVIEW
Group financial performance headlines
Revenue for the six months ended 30 September 2023 reduced to
GBP607.2m (H1 FY23: GBP786.7m) reflecting the shrinkage of the
nearly new used car market and wider headwinds in the economic
environment. Affordability has become an increasingly big issue for
consumers, and we are prioritising stock mix with less expensive
vehicles. Consequently, we have relaxed our age and mileage
criteria to ensure that we have the vehicles that customers desire
and can afford.
Gross profit was GBP37.7m (H1 FY23: GBP48.7m). Gross margin
remained at 6.2% (H1 FY23: 6.2%). During the period we managed the
increase to metal margin, in part through use of data, to offset
the impact of lower finance commissions.
Despite wage inflation of 6% and store openings, operating
expenses before exceptional items reduced by 15.7% to GBP36.1m (H1
FY23: GBP42.8m), reflecting a decrease in headcount and lower
marketing spend.
Loss before taxation and exceptional items was GBP(3.7)m (H1
FY23: PBT GBP3.0m). This included the impact of higher finance
costs of GBP5.3m, due to interest rate rises (H1 FY23:
GBP2.9m).
Despite the lower profitability, and as management took decisive
action, net cash improved significantly from year end. Net cash at
30 September 2023 was GBP11.2m (31 March 2023: GBP5.6m).
Trading performance
The Group has two key revenue streams, being (i) vehicles sold
to retail customers via the Group's stores, call centre and digital
channels, and (ii) vehicles sold to wholesale customers via the
Group's Auction4Cars.com website.
Wholesale
Retail customers customers Total
H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23
GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 509.8 653.1 97.4 133.6 607.2 786.7
Gross profit 32.7 43.4 5.0 5.3 37.7 48.7
Retail
Revenue from retail customers was down 21.9% to GBP509.8m (H1
FY23: GBP653.1m), with 25.8k (H1 FY23: 31.6k) vehicles sold (a fall
of 18.4%). Of these, 32.8% were sold online and we continue to see
around two thirds of customers wanting the store experience for
their vehicle purchase.
Gross margin of 6.4% was slightly reduced (H1 FY23: 6.6%)
following the aforementioned headwinds, and the strengthening of
metal margin offsetting the impact of higher APRs on finance
commission. We have seen a fall in attachment rates due to the
higher cost of finance.
Finance per vehicle sold decreased in the period, following this
increase in interest rates. Penetration was 49.0% in September (H1
FY23: 57.0%). Our APR finance rates continue to be competitive
despite increasing from 11.9% to 12.9% at the start of October
2023. We continue to monitor as we manage APR rates versus
commissions, and affordability for consumers.
Despite the move to older vehicles, the time taken to prepare a
vehicle improved slightly to 8.7 days (H1 FY23: 8.8 days).
Our 20th store opened in May 2023, in Ipswich.
Wholesale
Wholesale revenue via Auction4Cars.com, which sells vehicles
that have been part exchanged by retail customers, or directly
purchased from consumers, decreased by 27.1%. Circa 13.5k vehicles
were sold via this purely online platform, a reduction on H1 FY23
due to the fall in retail activity and the relaxation of criteria,
with more vehicles now being sold through the retail platform.
Gross margin improved to 5.1% (H1 FY23: 4.0%), following steps
taken by management to improve metal margin in H1 FY24, including a
focus on loss making vehicles and a review of buying fees (which
remain below the competitor set).
Operating expenses before exceptional items
Operating expenses before exceptional items decreased from
GBP42.8m in H1 FY23 to GBP36.1m. Despite the new stores opened,
overall full time equivalent employees reduced to 693 from 893 as
at 30 September 2022, as we focus on efficiency in stores,
preparation and head office, and right-sized our headcount to
reflect market conditions. Energy rates (for the property portfolio
at the time) were fixed for two years in September 2021, and we saw
a reduction of 10% in electric and gas usage in the period, on a
per square footage basis. Overall property costs remained broadly
in line with H1 FY23 in spite of new store openings. Marketing
costs decreased from GBP7.9m to GBP5.1m as we target a more focused
approach for our marketing spend, as well as responding to the
lower consumer demand.
Exceptional items
Exceptional items of GBP1.0m (H1 FY23: GBPNil) in the period
constituted one off restructuring costs, being redundancies
incurred during the summer of 2023, with a reduction of around 85
employees.
Interest
The Group's net financial expense was GBP5.3m (H1 FY23:
GBP2.9m); the increase reflects the rise in cost of borrowing.
Total interest charges on the stocking facilities in the period
were more than double at GBP3.8m (H1 FY23: GBP1.7m).
Interest on lease liabilities of GBP1.1m (H1 FY23: GBP1.0m) was
incurred during the period.
Interest on banking facilities was GBP0.4m (H1 FY23:
GBP0.2m).
Taxation
The tax charge in the period is for the amount assessable for UK
corporation tax in the year net of prior year adjustments and
deferred tax credits. The effective rate of tax in the year of
25.0% (H1 FY23: 20.0%) is in line with the charge which would
result from the standard rate of corporation tax in the UK of 25.0%
(effective from 1 April 2023).
Shares
At 30 September 2023, 90,190,000 ordinary shares were
outstanding, of which 1,671,989 were held in the Employee Benefits
Trust.
Earnings per share
Basic and diluted earnings per share were both (3.9)p (H1 FY23:
both 2.7p).
Dividends
No dividend was paid in the period (H1 FY23: GBPNil) and the
Board has not declared an interim dividend (H1 FY23: GBPNil).
Capital expenditure and disposals
Cash capital expenditure was GBP1.9m (H1 FY23: GBP5.5m) as the
business preserved cash, with additions primarily relating to the
new store in Ipswich and the ongoing IT projects.
Balance sheet
With a fall in retained earnings the net assets decreased since
year end by GBP3.0m to GBP35.9m. Working capital was proactively
managed during the period, with improvement in the net cash
position.
Non-current assets were GBP72.0m (31 March 2023: GBP75.2m) made
up of GBP12.4m of property, plant and equipment, GBP55.4m
right-of-use assets and intangible assets of GBP4.2m (31 March
2023: GBP13.1m, GBP58.4m and GBP3.7m respectively). The Group
currently owns one remaining freehold plot of land in Glasgow. All
other properties are on leases of various lengths.
The Group closed the period with GBP143.8m of inventory, down
from GBP148.6m at 31 March 2023. Days in stock for the period were
47 days (H1 FY23: 50 days).
At 30 September 2023 the Group had GBP195.0m (31 March 2023:
GBP195.0m) of stocking finance facilities available of which
GBP102.3m (31 March 2023: GBP102.5m) was drawn. The Group had
available stocking facilities with Black Horse Limited of
GBP120.0m, and GBP75.0m with Lombard North Central PLC. After the
period end, it was agreed with Black Horse to reduce the amount
available to GBP100.0m, to reflect the unused portion.
The Group also has a GBP35.0m facility with Santander UK PLC,
split between GBP6.0m available as an uncommitted overdraft and
GBP29.0m available as a revolving credit facility. At 30 September
2023 GBPNil (31 March 2023: GBPNil) was drawn on this facility.
Trade and other receivables have decreased marginally to
GBP18.1m (31 March 2023: GBP18.4m).
Trade and other payables, inclusive of the stock financing
facilities, have increased slightly to GBP145.6m (31 March 2023:
GBP143.8m) with the majority of the movement being due of the
timing of the VAT creditor at the period end.
The decrease in total lease liabilities to GBP61.7m (31 March
2023: GBP63.6m) reflects the repayments made during the period.
Cash flow
Cash flow from operations was GBP13.1m inflow (H1 FY23: GBP28.9m
inflow). The lower inflow, although still strong, reflects reduced
profitability and working capital utilisation in FY23.
Other main items in the cash flow include capital expenditure of
GBP1.9m (H1 FY23: GBP5.5m), principal lease repayments of GBP1.9m
(H1 FY23: GBP2.7m), interest payments of GBP5.3m (H1 FY23: GBP2.9m)
and a tax receipt of GBP1.6m (H1 FY23: payment of GBP1.1m). In H1
FY23, proceeds of GBP9.7m were received for the sale and leasebacks
of Stockton-on-Tees and Peterborough preparation centre.
Capital structure and treasury
The Group's objective when managing working capital is to ensure
adequate working capital for all operating activities and
liquidity, including comfortable headroom to take advantage of
opportunities, or to weather short term downturns. The Group also
aims to operate an efficient capital structure to achieve its
business plan.
The Group's long term funding arrangements consist primarily of
the stocking finance facilities with Black Horse Limited and
Lombard North Central (to a maximum of GBP175.0m) and an unsecured
loan facility provided by Santander UK PLC, split between GBP6.0m
available as an uncommitted overdraft and GBP29.0m available as a
revolving credit facility. During H1 FY24, the Group maintained its
available headroom by successfully extending its terms on the
facility. Both now run until May 2026 with the option to extend for
two further one year extensions if agreed by both parties.
Chris Morgan
Chief Financial Officer
23 November 2023
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE FY24
UNAUDITED INTERIM RESULTS
The Directors confirm that these condensed consolidated interim
financial statements have been prepared in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the European Union and that the interim
management report includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8, namely:
-- an indication of important events that have occurred during
the first six months and their impact on the condensed consolidated
interim financial statements, and a description of the principal
risks and uncertainties for the remaining six months of the
financial year; and
-- material related-party transactions in the first six months
and any material changes in the related-party transactions
described in the last annual report.
A list of current Directors and their biographies is maintained
on the Motorpoint Group PLC website www.motorpointplc.com
By order of the Board
Mark Carpenter
Chief Executive Officer
23 November 2023
Statement of Comprehensive Income
For the six months ended 30 September 2023
Unaudited Six Months ended 30 September
2023
B efore Exceptional T otal Unaudited Six
Exceptional Items Months ended
Items 30 September Year ended 31
2022 March 2023
Note GBPm GBPm GBPm GBPm GBPm
Revenue 6 607.2 - 607.2 786.7 1,440.2
Cost of sales (569.5) - (569.5) (738.0) (1,354.5)
-------------- -------------- -------- -------------- --------------
Gross profit 37.7 - 37.7 48.7 85.7
Operating expenses (36.1) (1.0) (37.1) (42.8) (79.2)
Other income - - - - 0.3
Operating profit / (loss) 1.6 (1.0) 0.6 5.9 6.8
Finance costs 7 (5.3) - (5.3) (2.9) (7.1)
-------------- -------------- -------- -------------- --------------
(Loss) / Profit before taxation (3.7) (1.0) (4.7) 3.0 (0.3)
Taxation 8 0.9 0.3 1.2 (0.6) (0.3)
-------------- -------------- -------- -------------- --------------
(Loss) / Profit for the
period/year (2.8) (0.7) (3.5) 2.4 (0.6)
-------------- -------------- -------- -------------- --------------
Other comprehensive income and
expenses:
Tax relating to items which
will not be reclassified to
profit or loss - - - - (0.1)
-------------- -------------- -------- -------------- --------------
Other comprehensive expense - - - - (0.1)
-------------- -------------- -------- -------------- --------------
Total comprehensive (expense) /
income for the period/year
attributable to equity holders
of the parent (2.8) (0.7) (3.5) 2.4 (0.7)
-------------- -------------- -------- -------------- --------------
Earnings per share
Basic 9 (3.9)p 2.7p (0.7)p
Diluted 9 (3.9)p 2.7p (0.7)p
-------------- -------------- -------- -------------- --------------
The Group's activities all derive from continuing
operations.
Total comprehensive expense / income for the period/year is all
attributable to the shareholders of the Company.
Condensed Consolidated Balance Sheet
As at 30 September 2023
30 September 2023 (unaudited) 30 September 2022 (unaudited) 31 March 2023
Note GBPm GBPm GBPm
ASSETS
Non-current assets
Property, plant and equipment 11 12.4 13.3 13.1
Right-of-use assets 12 55.4 57.8 58.4
Intangible assets 10 4.2 1.9 3.7
Deferred tax assets - 1.0 -
Total non-current assets 72.0 74.0 75.2
------------------------------ ------------------------------ --------------
Current assets
Inventories 143.8 185.6 148.6
Trade and other receivables 13 18.1 19.9 18.4
Current tax receivable 0.9 - 1.3
Cash and cash equivalents 11.2 4.5 5.6
------------------------------
Total current assets 174.0 210.0 173.9
------------------------------ ------------------------------ --------------
TOTAL ASSETS 246.0 284.0 249.1
------------------------------ ------------------------------ --------------
LIABILITIES
Current liabilities
Trade and other payables,
excluding contract
liabilities 15 (145.6) (175.7) (143.8)
Borrowings - - -
Lease liabilities 14 (4.2) (2.7) (3.4)
Current tax liabilities - (0.1) -
Provisions 16 - (0.1) -
Total current liabilities (149.8) (178.6) (147.2)
------------------------------ ------------------------------ --------------
NET CURRENT ASSETS 24.2 31.4 26.7
Non-current liabilities
Lease liabilities 14 (57.5) (60.9) (60.2)
Provisions 16 (2.6) (3.0) (2.6)
Deferred tax liabilities (0.2) - (0.2)
Total non-current liabilities (60.3) (63.9) (63.0)
------------------------------ ------------------------------ --------------
TOTAL LIABILITIES (210.1) (242.5) (210.2)
NET ASSETS 35.9 41.5 38.9
------------------------------ ------------------------------ --------------
EQUITY
Share capital 0.9 0.9 0.9
Capital redemption reserve 0.1 0.1 0.1
Capital reorganisation reserve (0.8) (0.8) (0.8)
Employee Benefit Trust reserve (5.3) (5.3) (5.3)
Retained earnings 41.0 46.6 44.0
------------------------------ ------------------------------ --------------
TOTAL EQUITY 35.9 41.5 38.9
------------------------------ ------------------------------ --------------
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 September 2023
Six Months Ended Capital Capital
30 September Share redemption reorganisation EBT Retained Total
2023 (Unaudited) capital reserve reserve reserve earnings equity
GBPm GBPm GBPm GBPm GBPm GBPm
--------------------------- --------- ------------ ---------------- --------- ---------- --------
At 1 April 2023 0.9 0.1 (0.8) (5.3) 44.0 38.9
Loss for the period - - - - (3.5) (3.5)
Total comprehensive
expense for the period - - - - (3.5) (3.5)
Transactions with
owners in their capacity
as owners:
Share-based payments - - - - 0.5 0.5
EBT share purchases
and commitments - - - - - -
Share-based compensation
options satisfied
through EBT - - - - - -
--------------------------- --------- ------------ ---------------- --------- ---------- --------
At 30 September
2023 0.9 0.1 (0.8) (5.3) 41.0 35.9
Six Months Ended Capital Capital
30 September Share redemption reorganisation EBT Retained Total
2022 (Unaudited) capital reserve reserve reserve earnings equity
GBPm GBPm GBPm GBPm GBPm GBPm
--------------------------- --------- ------------ ---------------- --------- ---------- --------
At 1 April 2022 0.9 0.1 (0.8) (4.7) 43.9 39.4
Profit for the period - - - - 2.4 2.4
Total comprehensive
income for the period - - - - 2.4 2.4
Transactions with
owners in their capacity
as owners:
Share-based payments - - - - 0.4 0.4
EBT share purchases
and commitments - - - (0.7) - (0.7)
Share-based compensation
options satisfied
through EBT - - - 0.1 (0.1) -
---------------------------- --------- ------------ ---------------- --------- ---------- --------
At 30 September
2022 0.9 0.1 (0.8) (5.3) 46.6 41.5
Capital Capital
Year Ended 31 March Share redemption reorganisation EBT Retained Total
2023 capital reserve reserve reserve earnings equity
GBPm GBPm GBPm GBPm GBPm GBPm
--------------------------- --------- ------------ ---------------- --------- ---------- --------
At 1 April 2022 0.9 0.1 (0.8) (4.7) 43.9 39.4
Loss for the year - - - - (0.6) (0.6)
Other comprehensive
expense for the year - - - - (0.1) (0.1)
Total comprehensive
expense for the year - - - - (0.7) (0.7)
Transactions with
owners in their capacity
as owners:
Share-based payments - - - 0.9 0.9
EBT share purchases
and commitments - - - (0.7) - (0.7)
Share-based compensation
options satisfied
through the EBT - - - 0.1 (0.1) -
---------------------------- --------- ------------ ---------------- --------- ---------- --------
At 31 March 2023 0.9 0.1 (0.8) (5.3) 44.0 38.9
---------------------------- --------- ------------ ---------------- --------- ---------- --------
Condensed Consolidated Cash Flow Statement
For the six months ended 30 September 2023
Unaudited Six Months ended
Unaudited Six Months ended 30 September
30 September 2023 2022 Year ended 31 March 2023
GBPm GBPm GBPm
(Loss) / Profit attributable
to equity shareholders (3.5) 2.4 (0.6)
Adjustments for:
Taxation (credit) / charge (1.2) 0.6 0.3
Finance costs 5.3 2.9 7.1
Operating profit 0.6 5.9 6.8
Share-based payments 0.1 0.1 0.1
Depreciation and
amortisation charges 5.1 4.6 9.4
----------------------------- ----------------------------- -------------------------
Cash flow from operations
before movements in working
capital 5.8 10.6 16.3
Decrease in inventory 4.8 42.8 79.8
Decrease / (Increase) in
trade and other receivables 0.7 (6.3) (4.8)
Increase / (Decrease) in
trade and other payables 1.8 (18.2) (50.0)
Cash generated from
operations 13.1 28.9 41.3
Interest paid on borrowings
and financial facilities (4.2) (1.9) (5.1)
Interest paid on lease
liabilities (1.1) (1.0) (2.0)
Income tax received / (paid) 1.6 (1.1) (1.1)
----------------------------- ----------------------------- -------------------------
Net cash generated from
operating activities 9.4 24.9 33.1
----------------------------- ----------------------------- -------------------------
Cash flows from investing
activities
Purchases of property, plant
and equipment and
intangible assets (1.9) (5.5) (9.4)
Proceeds from disposal of
property, plant and
equipment and right-of-use
assets - 9.7 9.7
Net cash (used in) /
generated from investing
activities (1.9) 4.2 0.3
Cash flows from financing
activities
Payments to satisfy employee
share plan obligations - (0.7) (0.7)
Repayment of leases (1.9) (2.7) (5.9)
Repayment of borrowings (19.5) (47.0) (57.0)
Proceeds from borrowings 19.5 18.0 28.0
----------------------------- ----------------------------- -------------------------
Net cash used in financing
activities (1.9) (32.4) (35.6)
----------------------------- ----------------------------- -------------------------
Net increase / (decrease) in
cash and cash equivalents 5.6 (3.3) (2.2)
Cash and cash equivalents at
the beginning of the period
/ year 5.6 7.8 7.8
-----------------------------
Cash and cash equivalents at
end of the period / year 11.2 4.5 5.6
----------------------------- ----------------------------- -------------------------
Net cash and cash
equivalents comprises:
Cash at bank 11.2 4.5 5.6
----------------------------- ----------------------------- -------------------------
The notes form an integral part of these Condensed Consolidated
Interim Financial Statements.
1. Basis of Preparation
Motorpoint Group Plc (the Company) is incorporated and domiciled
in the United Kingdom under the Companies Act 2006.
The Company is a public company limited by shares and is listed
on the London Stock Exchange; the address of the registered office
is Champion House, Stephensons Way, Derby, DE21 6LY. The Condensed
Consolidated Interim Financial Statements of the Company as at and
for the six months ended 30 September 2023 comprise the Company,
all of its subsidiaries and the Motorpoint Group Plc Employee
Benefit Trust (the 'EBT'), together referred to as the "Group".
These Interim financial statements are presented in pounds sterling
because that is the currency of the primary economic environment in
which the Group operates.
The Condensed Consolidated Interim Financial Statements for the
six months ended 30 September 2023 are unaudited and the auditors
have not performed a review in accordance with ISRE 2410, Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity.
Going concern
The interim financial statements are prepared on a going concern
basis. The Group regularly reviews market and financial forecasts
and has reviewed its trading prospects in its key markets.
Available stocking facilities remained at GBP195.0m during the
period, although reduced to GBP175.0m in October 2023 in line with
stock requirements. Arrangements relating to the unsecured loan
facility provided by Santander UK PLC (GBP35.0m split between
GBP6.0m available as an uncommitted overdraft and GBP29.0m
available as a revolving credit facility) were extended in June
2023 to June 2026 (previously May 2024), with the option to extend
for two further one year periods if agreed by both parties.
The Board has reviewed the latest forecasts of the Group,
including the impact of multiple scenarios, and considered the
obligations of the financing arrangements.
For the purpose of considering going concern the Group focuses
on a period of at least 12 months from the point of signing the
interim results.
The Board has considered a severe but plausible downside
scenario, when compared with the base model, in considering the
going concern status of the Group, reducing volumes and prices, and
increasing interest rates and comparing with headroom available
against banking covenants and liquid resources required to continue
trading. In this case, the business would make efforts to reduce
expenditure at both current sites and consider the capital
expenditure for any new sites. This scenario demonstrates that the
Group would comply with the relevant covenants.
The Directors are aware of the impact of rising inflation,
interest rates, consumer uncertainty and worldwide vehicle supply
chain challenges as described previously, but after assessing these
risks do not believe there to be a material risk to the going
concern of the Group.
Given the continued historical liquidity of the Group and
sufficiency of reserves and cash in the stressed scenarios
modelled, the Board has concluded that the Group has adequate
resources to continue in operational existence over the going
concern period and into the foreseeable future thereafter.
Accordingly, they continue to adopt the going concern basis in
preparing the interim results.
2. Statement of Compliance
These Condensed Consolidated Interim Financial Statements have
been prepared in accordance with UK adopted IAS 34 Interim
Financial Reporting and the Disclosure and Transparency Rules
sourcebook of the UK's Financial Conduct Authority. The financial
information included does not constitute statutory accounts within
the meaning of section 434 of the Companies Act 2006 ('the Act')
and do not include all the information required for full annual
financial statements. Accordingly, they should be read in
conjunction with the Annual Report and Financial Statements of
Motorpoint Group PLC for the year ended 31 March 2023. These
condensed consolidated interim financial statements were approved
by the Board of Directors on 22 November 2023.
3. Significant Accounting Policies
The same accounting policies, presentation and methods of
computation which were followed in the preparation of the Annual
Report and Financial Statements for Motorpoint Group PLC for the
period ended 31 March 2023 have been applied to these Condensed
Consolidated Interim Financial Statements where applicable. The
accounting policies and details of new standards adopted in the
year ended 31 March 2023 are listed in the Motorpoint Group PLC
Annual Report and Financial Statements on pages 126-134.
4. Comparative Figures
The comparative figures for the financial year ended 31 March
2023 are extracted from the Motorpoint Group PLC Annual Report and
Financial Statements for that financial year. The accounts have
been reported on by the Company's auditor and delivered to the
Registrar of Companies. The report of the auditor was (i)
unqualified (ii) did not include a reference to any matters to
which the auditor drew attention by way of emphasis without
qualifying their report and (iii) did not contain a statement under
section 498(2) or (3) of the Act.
5. Segmental Reporting
The Group has prepared segmental reporting in accordance with
IFRS 8 'Operating Segments'. The Group's chief operating decision
maker is considered to be the Board of Directors. Segmental
information is presented on the same basis as the management
reporting. An operating segment is a component of the business
where discrete financial information is available and the operating
results are regularly reviewed by the Group's chief operating
decision maker to make decisions about resources to be allocated to
the segment and to assess its performance.
Operating segments are aggregated into reporting segments to
combine those with similar characteristics.
The Group operates its omnichannel vehicle retailer offering
through a store network and separate financial information is
prepared for these individual store operations. These stores are
considered separate 'cash generating units' for impairment
purposes. However, it is considered that the nature of the
operations and products is similar and they all have similar long
term economic characteristics and the Group has applied the
aggregation criteria of IFRS 8. In addition, the Group operates an
independent trade car auction site offering a business to business
entirely online auction market place platform which is assessed by
the Board as a separate operation and thus there are two reportable
segments: retail and wholesale.
Retail Retail Wholesale Wholesale Total Total
30 September 30 September 30 September 30 September 30 September 30 September
2023 2022 2023 2022 2023 2022
GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 509.8 653.1 97.4 133.6 607.2 786.7
Cost of sales (477.1) (609.7) (92.4) (128.3) (569.5) (738.0)
------------- ------------- ------------- ------------- ------------- -------------
Gross profit 32.7 43.4 5.0 5.3 37.7 48.7
------------- ------------- ------------- ------------- ------------- -------------
6. Revenue
Revenue represents amounts chargeable, net of value added tax,
in respect of the sale of goods and services to customers. Revenue
is measured at the fair value of the consideration receivable, when
it can be reliably measured, and the specified recognition criteria
for the sales type has been met. The transaction price is
determined based on periodically reviewed prices and are separately
identified on the customer's invoice. There are no estimates of
variable consideration.
The transaction price for motor vehicles and motor related
services is at fair value as if each of those products are sold
individually.
(i) Sales of motor vehicles
Revenue from the sale of retail motor vehicles is recognised
when the control has passed; that is, when the vehicle has been
collected by, or delivered to, the customer. Payment of the
transaction price is due immediately when the customer purchases
the vehicle. Sales of accessories, such as mats, are recognised in
the same way.
Revenue from the sale of wholesale vehicles is recognised when
the control has passed; that is, when full payment has been made
for the vehicle.
The Group operates a return policy which is consistent with the
relevant consumer protection regulations. This is offered in the
form of a seven day exchange guarantee to all retail customers and
a 14 day money back guarantee for home delivery customers.
(ii) Sales of motor related services and commissions
Motor related services sales include commissions on finance
introductions, extended guarantees and vehicle asset protection as
well as the sale of paint protection products. Sales of paint
protection products are recognised when the control has passed;
that is, the protection has been applied and the product is
supplied to the customer.
Vehicle extended guarantees where the Group is contractually
responsible for future claims are accounted for by deferring the
guarantee income received along with direct selling costs, and then
releasing the income on a straight line basis over the remaining
life of the guarantee. Costs in relation to servicing the extended
guarantee income are expensed to the statement of comprehensive
income as incurred. The Group has not sold any of these policies in
the current or prior period but continues to release income in
relation to legacy sales.
Vehicle extended guarantees and asset protection ('GAP
insurance') where the Group is not contractually responsible for
future claims, are accounted for by recognising the commissions
attributable to Motorpoint at the point of sale to the
customer.
Where the Group receives finance commission income, primarily
arising when the customer uses third party finance to purchase the
vehicle, the Group recognises such income on an 'as earned'
basis.
The assessment is based on whether the Group controls the
specific goods and services before transferring them to the end
customer, rather than whether it has exposure to significant risks
and rewards associated with the sale of goods or services.
The Group receives commissions when it arranges finance,
insurance packages, extended warranty and paint protection for its
customers, acting as agent on behalf of a limited number of
finance, insurance and other companies. For finance and insurance
packages, commission is earned and recognised as revenue when the
customer draws down the finance or commences the insurance policy
from the supplier which coincides with the delivery of the product
or service. Commissions receivable for all motor related services
are paid typically in the month after the finance is drawn down.
For extended warranty and paint protection, the commission earned
by the Group as an agent is recognised as revenue at the point of
sale on behalf of the Principal.
Six Months Six Months Year
ended 30 ended 30 ended 31
September September March
2023 2022 2023
GBPm GBPm GBPm
Revenue from sale of motor vehicles 578.1 745.3 1,370.7
Revenue from motor related services
and commissions 25.9 34.5 62.6
Revenue recognised that was included
in deferred income at the beginning
of the period - Sale of motor vehicles 0.2 3.9 3.9
Revenue recognised that was included
in deferred income at the beginning
of the period - Motor related services
and commissions 3.0 3.0 3.0
Total Revenue 607.2 786.7 1,440.2
------------ ------------ -----------
7. Finance costs
Six Months ended Six Months ended Year ended
30 September 30 September 31 March
2023 2022 2023
GBPm GBPm GBPm
Interest on bank borrowings 0.4 0.2 0.4
Interest on stocking finance facilities 3.8 1.7 4.7
Other interest payable 1.1 1.0 2.0
----------------- ----------------- -----------
Total finance costs 5.3 2.9 7.1
----------------- ----------------- -----------
8. Taxation
The tax charge for the period is provided at the effective rate
of 25.0% (H1 FY23: 20.0%) representing the best estimate of the
average annual tax rate for the full year profit.
9. Earnings per Share
Basic and diluted earnings per share are calculated by dividing
the earnings attributable to equity shareholders by the weighted
average number of ordinary shares at the end of the period.
No dilution in H1 FY24 due to the Group making a loss before
taxation.
Six Months Six Months Year
ended 30 ended 30 ended 31
September September March
2023 2022 2023
----------- ----------- ----------
(Loss) / Profit Attributable to Ordinary Shareholders (GBPm) (3.5) 2.4 (0.6)
----------- ----------- ----------
Weighted average number of ordinary shares in Issue ('000) 90,190 90,190 90,190
----------- ----------- ----------
Basic Earnings per share (pence) (3.9) 2.7 (0.7)
----------- ----------- ----------
Diluted Number of Shares in Issue ('000) 90,190 90,207 90,190
----------- ----------- ----------
Diluted Earnings per share (pence) (3.9) 2.7 (0.7)
----------- ----------- ----------
The difference between the basic and diluted weighted average
number of shares represents the dilutive effect of the various
Group share plans. This is shown in the reconciliation below.
Six Months Six Months Year
ended 30 ended 30 ended 31
September September March
2023 2022 2023
Weighted average number of ordinary shares in Issue ('000) 90,190 90,190 90,190
Adjustment for share options ('000) - 17 -
----------- ----------- ----------
Weighted average number of ordinary shares for diluted earnings per share
('000) 90,190 90,207 90,190
10. Intangible assets
WIP IT projects Total
GBPm GBPm GBPm
At 1 April 2023 0.6 3.1 3.7
Additions - 1.0 1.0
Transfers (0.3) 0.3 -
Amortisation - (0.5) (0.5)
At 30 September 2023 0.3 3.9 4.2
------ ------------ ------
11. Property, plant and equipment
Short term
leasehold Plant Fixtures Office
WIP Land improvement and machinery and fittings equipment Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At 1 April 2023
Cost 0.5 2.4 14.2 2.4 3.6 4.8 27.9
Accumulated depreciation - - (7.6) (1.6) (1.9) (3.7) (14.8)
------ ----- ------------- --------------- -------------- ----------- -------
Net book value 0.5 2.4 6.6 0.8 1.7 1.1 13.1
------ ----- ------------- --------------- -------------- ----------- -------
Opening net book
value 0.5 2.4 6.6 0.8 1.7 1.1 13.1
Additions - - 0.6 - 0.1 0.2 0.9
Transfers (0.3) - 0.2 0.1 - - -
Depreciation - - (0.9) (0.2) (0.2) (0.3) (1.6)
------ ----- ------------- --------------- -------------- ----------- -------
Closing net book
value 0.2 2.4 6.5 0.7 1.6 1.0 12.4
------ ----- ------------- --------------- -------------- ----------- -------
At 30 September
2023
Cost 0.2 2.4 15.0 2.5 3.7 5.0 28.8
Accumulated depreciation - - (8.5) (1.8) (2.1) (4.0) (16.4)
------ ----- ------------- --------------- -------------- ----------- -------
Net book value 0.2 2.4 6.5 0.7 1.6 1.0 12.4
------ ----- ------------- --------------- -------------- ----------- -------
12. Right-of-use assets
30 September 30 September 31 March
2023 2022 2023
Right-of-use assets GBPm GBPm GBPm
Balance brought forward 58.4 46.7 46.7
Additions - 14.1 17.4
Depreciation charge (3.0) (3.0) (5.7)
55.4 57.8 58.4
------------- ------------- ---------
13. Trade and other receivables
30 September 30 September 31 March
2023 2022 2023
Due within one year GBPm GBPm GBPm
Trade receivables 9.6 16.0 9.9
Prepayments 2.1 3.9 3.9
Accrued income 6.4 - 4.6
------------- ------------- ---------
18.1 19.9 18.4
------------- ------------- ---------
The Directors' assessment is that the fair value of trade and
other receivables is equal to the carrying value. Accrued income
relates to commissions earned from finance companies.
14. Lease liabilities
30 September 30 September 31 March
2023 2022 2023
Lease liabilities GBPm GBPm GBPm
Balance brought forward 63.6 52.8 52.8
Additions to lease liabilities - 13.5 16.7
Repayment of lease liabilities (including interest element) (3.0) (3.7) (7.9)
Interest expense related to lease liabilities 1.1 1.0 2.0
61.7 63.6 63.6
------------- ------------- ---------
Current 4.2 2.7 3.4
Non-current 57.5 60.9 60.2
------------- ------------- ---------
61.7 63.6 63.6
------------- ------------- ---------
15. Trade and other payables
Due less than 1 year
30 September 30 September 31 March
2023 2022 2023
GBPm GBPm GBPm
Trade payables
* Trade creditors 20.8 27.5 18.6
102.3 124.6 102.5
* Stocking finance facilities
Other taxes and social security
* VAT payable 4.3 1.1 0.7
0.7 1.0 0.9
* PAYE/NI payable
Other creditors 1.5 0.1 0.3
Accruals and deferred income 16.0 21.4 20.8
145.6 175.7 143.8
------------- ------------- ---------
The Directors' assessment is that the fair value of trade and
other payables is equal to the carrying value.
16. Provisions
30 September 30 September 31 March
2023 2022 2023
GBPm GBPm GBPm
Make good provision(1) 2.5 3.0 2.5
Onerous leases(2) 0.1 0.1 0.1
2.6 3.1 2.6
------------- ------------- ---------
Current - 0.1 -
Non-current 2.6 3.0 2.6
------------- ------------- ---------
2.6 3.1 2.6
------------- ------------- ---------
(1) Make good provision
The Group may be required to restore the leased premises
of its retail stores to their original condition at the end
of the respective lease terms. A provision has been recognised
for the present value of the estimated expenditure required
to remove any leasehold improvements. These costs have been
capitalised as part of the cost of right-of-use assets and
are amortised over the shorter of the term of the lease and
the useful life of the assets.
The timing of the cash outflow relating to the make good
provision is in line with the life of the relevant lease.
The remaining term on existing leases ranges from 2 to 16
years with a weighted average of 10 years.
There is judgement associated with the potential cost of
remediation of each property and estimated provisions have
been based on the past experience of the Group.
(2) Onerous leases
The Group operates across a number of locations and if there
is clear indication that a property will no longer be used
for its intended operation, a provision may be required based
on an estimate of potential liabilities for periods of lease
where the property will not be used at the end of the reporting
period, to unwind over the remaining term of the lease. The
onerous lease is likely to be utilised for a period of 3
years.
17. Post balance sheet events
On 2October 2023, a significant amount of damage was caused to
inventory and the fixed assets within the Derby store because of
flooding in the area. Assessments for the full value of the damage
are still being carried out at the day of signing. However, the
Group expects that this will be covered through the insurance
policies held.
Given the significant headroom on the stocking facility with
Black Horse Limited, it was agreed to reduce this by GBP20.0m to
GBP100.0m in October 2023. The equivalent facility with Lombard
North Central of GBP75.0m remains at the same level.
Alternative performance measures "APM s"
Return on capital employed (ROCE)
30 September 2023 30 September 31 March 2023
2022
--------------------------- ----------------- ------------ -------------
Operating profit before
exceptional items for the
last 12 months (GBPm) 2.5 15.8 6.8
Average net assets (GBPm) 38.7 39.2 39.2
--------------------------- ----------------- ------------ -------------
ROCE 6.5% 40.3% 17.3%
--------------------------- ----------------- ------------ -------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR KLLFLXFLBFBF
(END) Dow Jones Newswires
November 23, 2023 02:00 ET (07:00 GMT)
Motorpoint (LSE:MOTR)
Historical Stock Chart
From Apr 2024 to May 2024
Motorpoint (LSE:MOTR)
Historical Stock Chart
From May 2023 to May 2024