3 April 2025

Motorpoint Group PLC

("Motorpoint" "Company " or the "Group")

Q4 and Full Year Trading Update, and

commencement of further share buyback

Motorpoint Group PLC, the UK's leading independent omnichannel vehicle retailer, provides an update on its trading performance for the fourth quarter and year ended 31 March 2025 ahead of announcing its Final Results in June 2025.

Highlights:

·    Strong return to profitable growth

·    Full year retail volumes up c.14.0% on FY24

·    Strong outperformance of the used car market. In the 0-6 year category, for the 12 months to 31 December 2024, Motorpoint's retail sales volumes grew 14.8% year on year, against 2.8% market growth

·    Group expects to report Earnings Before Interest and Tax and Profit Before Tax for the full year within the ranges of £13.3m to £13.6m (FY24: £(0.6)m), and £4.0m to £4.3m (FY24: £(10.4)m), respectively, representing significant improvement

·    Our 21^st store opened in Norwich in early December and is trading well; we continue to evaluate further store opening opportunities

·    Balance sheet robust with no structural debt and c.£6m of cash at 31 March 2025, despite significant vehicle purchasing throughout March 2025. Strong stock position as we commence FY26

·    Improving Net Promoter Score (NPS) and tracking over 80 in H2 FY25

·    A further share buyback announced to repurchase and cancel up to 3m shares

Positive momentum continued through H2 FY25, with strong retail unit volumes, which translated into profitable growth. For the 12 months to 31 December 2024, we significantly outperformed the 0-6 year used car market, growing retail sales volumes by 14.8%. As anticipated, growth moderated in Q4 as we lapped tougher comparatives alongside a continuing subdued consumer backdrop although margins continued to be generally stable. High interest rates continue to hamper finance commission performance and stock funding costs.

We continued to enhance our digital capabilities during the period, which translated into increased website traffic and resultant leads. Our use of more advanced data analytics continues to expand, and we expect to see further benefits coming through in FY26, particularly in terms of car purchasing and pricing. We are pleased with the performance of our 21^st store, which opened in Norwich in December 2024, and we are actively seeking further new store opportunities in strategic locations across the UK to drive further growth.

We remain focused on providing an excellent customer service. Our commitment to service and quality in H2 FY25 resulted in our NPS returning to above 80 in the period.

Mark Carpenter, Chief Executive Officer of Motorpoint Group PLC commented:

"Having returned to profitability in the first half of FY25, I am very pleased with our performance across the full year, delivering profitable growth and significantly outperforming the wider used car market. We recommenced our new store opening programme with the Group's 21^st store opening in Norwich in December 2024. Notwithstanding the ongoing consumer and macroeconomic environment, Motorpoint is in a strong position to grow further, and I am cautiously optimistic for the FY26 outlook.

I am also pleased to announce a further share buyback programme, following the successful completion of last year's £5 million buyback. This reflects both our ability to generate strong cash flow whilst achieving sustainable growth, and our focus on delivering attractive returns to shareholders."

Commencement of share buyback

Motorpoint will shortly commence a share buyback programme (the "Programme") to repurchase up to 3 million ordinary shares of 1 pence each in the capital of the Company ("Ordinary Shares") representing approximately 3.5% of the Company's Ordinary Shares. The aggregate purchase price of all Ordinary Shares acquired under the Programme will be no more than approximately £4m (excluding stamp duty and expenses). 

The Company has appointed Numis Securities Limited ("Deutsche Numis") to manage the Programme.

The Company continues to have ambitious plans for growth, and further investments in digital, technology and other capabilities that will help it realise its ambitions.  Even after taking into consideration the capital required to fund planned organic growth, the Company's cash generation and the strength of its balance sheet has led the Board to conclude that the Programme is an attractive use of the Company's resources and is beneficial for all shareholders.

The Board believes that the current level of liquidity in the issued Ordinary Shares may impact the progress of the Programme. In order to complete the Programme in an effective manner the Group, in discussions with its broker, Deutsche Numis has agreed that on any given trading day a buyback of shares under the Programme may exceed 25 per cent. of the aggregated average daily trading volume across all trading platforms on which Motorpoint shares are traded. On days where a buyback of shares exceeds 25 per cent. of the average daily trading volume, the Group will not fall within the exemption contained in Article 5(1) MAR.

The Programme will be conducted in accordance with the general authority to repurchase shares granted by the Group's shareholders at the 2024 Annual General Meeting, Chapter 12 of the UK Listing Rules and within the parameters prescribed by the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU. As noted above, on days where a buyback of shares exceeds 25 per cent. of the average daily trading volume, the Group will not fall within the exemption contained in Article 5(1) MAR.

Details of any Ordinary Shares repurchased will be notified to a Regulatory Information Service by the Group following any repurchase as required by the MAR and the Listing Rules of the FCA. The Company confirms that it currently has no unpublished Inside Information.

Inside Information

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Enquiries:

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 21 sales and collection 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.