The independent omnichannel vehicle retailer, Motorpoint Group, has recently announced that the previous financial year posed the greatest challenges to date, attributing the difficulty to several adverse external factors within the macro environment.
According to the final results for the year ended on 31st March 2024, the company reported a significant decrease in revenue of 24.6%, amounting to just under £1.1bn. Furthermore, the business posted an underlying loss before tax of £8.2m and a reported loss before tax of £10.4m, both widening from £0.3m in the previous year.
Mark Carpenter, the Chief Executive Officer of Motorpoint Group PLC, expressed that “The past financial year was the most difficult in our history, with multiple negative headwinds in the macro environment such as rising borrowing costs and subdued customer demand, coupled with industry specific issues such as lower inventory and deflation. The resilience of our cash generation evidences the strength of our business model and we now look forward to continuing our journey of profitable growth as the improving trends of Q4 have continued into Q1. Following the rightsizing exercise of FY24, we now have a lean, technology-enabled business. I am very confident in our ability to scale profitability and cash generation as the market improves, which will allow us to invest further in growth.”
In spite of the challenges faced, the company remains optimistic about the future, noting a positive start to FY25, with both April and May proving to be profitable months.
It is undeniable that the past year has presented Motorpoint Group with numerous obstacles, but as Mark Carpenter highlighted, the company is well-positioned to adapt and thrive in the changing market conditions. The resiliency of the business model and the positive start to the current financial year are promising indicators of better times ahead.
It is vital for companies to maintain focus on long-term growth and profitability, especially in the face of adversity. Motorpoint Group’s ability to confront challenges head-on and adapt to the evolving market landscape bodes well for its future success.
In conclusion, while the financial year may have been the most difficult in its history, Motorpoint Group is poised to emerge stronger and more resilient, with a renewed focus on profitable growth and a lean, technology-enabled business model.
Source: East Midlands Business Link