12 June 2025

Motorpoint Group PLC

("Motorpoint" or the "Group")

Final Results

Strong market outperformance, return to profitability and reinstating dividend.

Group well positioned to accelerate strategic growth plans

FY25 Financial Summary

·      Return to profitability driven by strong growth in retail volumes of 13.9% with 59.9k retail vehicles sold (FY24: 52.6k)

·      Gross profit improvement aided by greater use of data led analytics and improved stock management

·      Interest rates remained high and continued to impact finance penetration rates

·      Underlying operating expenditure (excluding exceptional items) increased from £72.9m to £78.1m, largely reflecting inflation and cautious headcount increase to satisfy demand. Significant variable cost savings, including energy and banking card fee reductions

·      No exceptional items in FY25. Exceptional items in FY24 are explained in note 5

·      Cash movement influenced by share purchases, investment in the estate and significant stock purchasing in March 2025

·      Proposed reintroduction of 1.0p final dividend to complement share buyback. Progressive dividend policy anticipated going forward, subject to capital allocation priorities

·      Bank facilities of £20m undrawn at year end, and extended for a further year to June 2027

(1)           Total marketing cost (including team) per retail unit sold

·      Used car prices broadly stable as macroeconomic headwinds began to moderate

·      Based on SMMT data, our share of the 0-6 year old market increased by 12.3% on previous year reaching 2.46% in final quarter (Q4FY24: 2.27%)

·      Increased retail and wholesale margin supported by data-led buying and pricing, including focus on aged vehicles

·      Days in stock reduced to an industry leading 43 days, a further improvement on previous year

·      Technology investment continued to focus on website improvements, enhancing the customer experience and product information, leading to increases in website sessions and digitally led sales (both up 16%)

·      Focus on digital brand awareness and CRM to support customers' omnichannel journey reduced customer acquisition cost

·      Strong focus on customer service, evidenced by second half improvement in NPS which reached 84 in final quarter of FY25, an increase from the first half of the year of 77

·      Continued good progress against ESG objectives, with Scope 1 and 2 emissions (and business travel) down 4.9% (same space basis) and total waste down 15.6%

·      Named by the Sunday Times as one of the Top 115 best big places to work in 2025

·      Recommenced larger new store openings; our 21st store opened in Norwich in December 2024 and is already contributing to operating profit (before central recharges)

·      Significant £4.7m investment to relaunch and extend the original Motorpoint store in Derby

·      Further share buyback programme of 3m shares which commenced post year end, following quickly on the back of the 3.6m share buyback completed in FY25

Current Trading and Outlook

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·      Positive momentum has continued into FY26:

·      Delivered retail volume growth across April and May (against tougher prior year comparatives), and profitability increased on previous year

·      Vehicle pricing remains generally stable

·      Metal margins further strengthening, aided by data insight

·      Growing supply from our Sell Your Car (SYC) channel

·      Ancillary product performance positive, supported by new products

·      NPS running at all time high

·      Expect ongoing macroeconomic pressures to generally ease, with further, moderate reductions in interest rates; although mindful consumer confidence in near term remains uncertain

·      Supply of nearly new used vehicles should continue to slowly increase

·      Continue to prudently manage cost base despite labour inflation headwinds

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

"I am extremely pleased with our performance in FY25. Motorpoint has experienced several years of considerable economic headwinds that have hampered our industry. We responded in FY24 with our Brilliant Basics programme which rightsized the business and improved margin performance. This successfully laid the foundations for growth and in FY25 resulted in double digit year on year volume growth, significant gains in market share, faster stock turn, and a welcome return to profitability. I am also delighted that our customer NPS improved through the year, reaching record levels in the final quarter, and that we have been recognised as one of the Sunday Times' best big places to work.

Recent falls in interest rates are welcome, although they remain relatively high, and supply continues to slowly improve, with more bulk deals available of newer stock. We remain cautious while conditions for the consumer remain uncertain but are well placed to continue to grow profitably and outperform the market. This will allow us to continue to invest in our strategic objectives, and accelerate activity over time as conditions allow, in addition to returning excess capital to shareholders."

Analyst & Investor Webinar

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A webinar for sell-side analysts and investors will be held today at 09:00 BST, the details of which can be obtained through FTI Consulting via [email protected].  

Investor Meet Company Presentation

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Separately, Chris Morgan, CFO, will host a live presentation and Q&A via Investor Meet Company at 12:30 BST on the 23 June 2025. The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 09:00 BST the day before the meeting or at any time during the live presentation.

To sign up to the presentation via Investor Meet Company please register using the following link: https://www.investormeetcompany.com/motorpoint-group-plc/register-investor

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 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 and quality for customers.

Chair's statement

Persevering through a difficult market

The used car industry has faced difficult market conditions for several years. High interest rates, periods of car price volatility, depressed consumer demand and constrained vehicle supply combined to cause upheaval in the industry and reduce our sales and profits. After a particularly challenging FY23, and facing similar conditions in FY24, Motorpoint quickly implemented a rightsizing and margin improvement programme with the aim to limit losses and preserve cash. This restructuring, which continues to be in place today, proved critical to limiting losses during FY24 and positioning the Company to benefit from market improvement in FY25 and beyond. 

FY25 saw moderate improvement in macroeconomic headwinds - slight reductions in interest rates, periods of improved consumer sentiment, more stable used car pricing and some loosening of supply. I am pleased that Motorpoint was able to benefit from these moderate market improvements and, indeed, outperform the market. We grew retail sales and market share strongly, increased our margins and reduced days in stock. This, coupled with our more efficient cost base, ensured a return to meaningful levels of profitability and cash generation for the year.

As much as we would like to believe that the challenges are behind us, this would be premature.  The supply of used vehicles, particularly those meeting our nearly new criteria, remains subdued.  Interest rates remain high, and the effect of global disruptions in trade on the UK used car industry are unclear.  Nevertheless, we are cautiously optimistic that economic trends are favourable, confident that Motorpoint is well positioned to benefit from an improved used car market, and looking increasingly to the future by modestly increasing our investment in our strategic capabilities.

Strategic opportunity

More than three years ago 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 goals. We have since expressed our long term strategy to become the UK's largest used car dealer by providing market leading digital services, and by redefining the omnichannel business model by developing integrated consumer journeys across our digital, store, customer service and delivery channels that will meet changing consumer needs. We believe this to be our central strategic opportunity. Underpinning Motorpoint's new capabilities will be contemporary technology and data practices which will not only enable unique omnichannel customer journeys but will improve efficiency in our key processes such as selling, vehicle preparation, logistics, pricing and inventory turnover.

Beginning soon after embarking on this ambitious strategic agenda, and continuing through to today, significant economic challenges have continued to negatively impact the used car market and Motorpoint in particular. Although the Company remained committed to its strategic direction and to our belief in the size of our opportunity, Motorpoint's capacity to invest in its strategic plans has naturally been constrained. We have made modest but targeted strategic progress while balancing our ambitions with responsible financial management. 

With a positive FY25 behind us, and cautious optimism for further improvement in FY26 and beyond, we will again consider targeted investments toward our long term strategic plans.  We look forward to continuing improvements to our website, returning to our programme of adding stores, developing selective key technology infrastructure, building data tools in pricing, transport and allocation, scaling our Sell Your Car direct purchase proposition, and testing market opportunities for aftersales service. As market conditions continue to improve, and Motorpoint's profits and cash generation grow proportionately, our confidence in a more aggressive pace of strategic investments will grow as well. We remain convinced of our long term strategic opportunity and look forward to pursuing it with as much vigour as conditions allow.

Capital allocation

Motorpoint has consistently demonstrated its ability to generate cash, even in tougher economic times. Last year, while making selective strategic investments in data, technology and marketing, we successfully completed the repurchase and cancellation of 3.6 million shares. We have recently commenced a further buyback programme to repurchase and cancel another 3 million shares, and have plans to reintroduce a dividend. Our priority remains to invest cash responsibly in pursuit of our ambitious strategic agenda. However, we believe the buybacks and dividend are an appropriate use of excess cash and an enhancement to shareholder value.

Throughout the year, we regularly engage with our shareholders to ensure there is a clear understanding of how the Group's business is managed to generate sustainable returns and long term success. To that effect, following dialogue with Saray Capital, our largest shareholder, we will be inviting Mr Majed Hashim, Chair and CEO of Saray Capital, to participate as a board advisor.  We anticipate this role may include periodic meetings with management and the Chair of the Board of Directors, and his attendance at select future standalone strategy sessions with our Board and management team.  We look forward to benefiting from his insights and experience at these meetings.

I would like to thank the Motorpoint team for their agility and resilience over the past few years which has positioned the business well, and for their positive performance in FY25.  I am delighted that their hard work has been rewarded with a return to profitability and market outperformance.

John Walden

Chair

Motorpoint Plc

12 June 2025

Chief Executive's statement

Overview

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.

During the year, we recommenced our new store expansion programme with the Group's 21st 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 was also pleased to announce another share buyback programme, post year end on 3 April 2025, following the successful completion of last year's £5 million buyback. In addition, the Board has proposed the recommencement of a progressive dividend policy, with a full year dividend of 1.0p per share. This reflects both our ability to generate strong cash flow while achieving sustainable growth, and our focus on delivering attractive returns to shareholders.

Return to profitable growth

We launched Brilliant Basics in FY24 to focus on driving operational excellence, which resulted in a lean cost base, faster stock turn and lower prices, with the cumulative effect of improving profitability. The benefits started to materialise in the final quarter of FY24 and have continued throughout FY25.  Retail units grew strongly, up 13.9% on FY24, despite lapping tougher comparatives in the final quarter which slowed the rate of growth. We also outperformed our peers, with market share growth of 12.3%.

Our response to the macroeconomic challenges we faced in FY23 and FY24 has demonstrated our resilience by focusing on relentless plan execution to do what is right for our customers. We continue to remain focused on ensuring we stock the best value, affordable used cars, as well as reinforcing our "Double the Difference" lowest price guarantee. We expanded our use of data to better inform buying and dynamic pricing decisions, which supported strong metal margin performance. This agile approach helped us minimise any overage stock and, where necessary, clearance was supported by marketing investment. Days in stock reduced further to an industry leading 43 days (FY24: 45 days). Strong metal margin and ancillary product performance helped offset lower finance commissions which continue to be impacted by high interest rates.

As previously reported, we significantly reduced our headcount in FY24, when we rightsized the business. Whilst the FTE headcount at year end increased to 779 (FY24: 710), as we cautiously responded to increased customer demand, this remains significantly below the high of almost 950 in early FY23.

Strategy update - focus on accelerated growth plans

Despite the market challenges during FY24, we remained committed to our long term growth aspirations, whilst focusing in the short term on margin improvement, cost base management and cash generation, as well as furthering the strategic objectives that offer the best near term returns. Our strong cash position allowed us to continue making targeted strategic investments, with further improvements in technology involving both our retail and wholesale businesses.

As our confidence grew through the year, it enabled us to accelerate investment, further enhancing our digital capabilities and upscaling our E-commerce offering and recommencing our new store opening programme. Norwich opened in December 2024 and is trading successfully. As well as having the capability to prepare its own cars (and thus being less reliant on transportation from other sites), it benefits from having a larger pitch capacity. Norwich is our 21st store, and we envisage that future openings will be at similar sized, larger locations. In addition, we have significantly invested in our original store at Derby, which includes expanding the site, therefore increasing the number of vehicles on display for customers alongside a brand new, better positioned showroom.

We continued to enhance our digital capabilities in FY25, which translated into increased website traffic and resultant leads.  Enhancements continue to be made to our website, and we believe that it is now one of the best in the market. Sales from digital leads increased by 16% and we are becoming increasingly more efficient in how the marketing budget is spent. Customer acquisition cost per retail unit fell from £190 to £177 over this same period. Website sessions increased 16% to 15.9m.

Data is becoming ever more fundamental to how we operate; from what prices we set daily, to what streams of marketing work best in a rapidly changing marketplace. As such, we continue to bolster our data and digital teams, and where necessary, attain input from third party experts. We are now able to provide our buying teams with real time data to allow them to have further confidence when acquiring vehicles, and also to inform selling price decisions. We are also expanding our Sell Your Car proposition (SYC; our car buying service direct from consumers), buying 3,572 cars in the year, and c.300k vehicles were valued for SYC and part exchange.

Increased customer demand, coupled with the successful execution of our Brilliant Basics programme, has resulted in a return to profitability in FY25, and provides the Board with increasing confidence to establish organic plans to accelerate growth.

The Board has reviewed future plans, and whilst investing in organic growth remains the priority, it has concluded that cash generation can also support returning significant levels of cash back to shareholders by way of buybacks and dividends.

The Group's strategic growth priorities in FY26 and beyond are:

Expansion of supply channels

Sell Your Car expansion             

Increase number and scale of sourcing channels

New store openings

Norwich blueprint for larger stores

Target areas of country with little market presence

Data and AI to further inform buying and pricing

Buying decisions based on internal and external data

Dynamic pricing, led by data

Site allocation to aid faster stock turn

Broaden brand reach

Invest in new and existing channels to reach consumer

Website destination for research and buying

Further technology development to enhance the customer journey

Best in class website; continue to invest, to optimise functionality

Webchat/ Chatbox enhancement; maximise AI opportunity

Complete omnichannel approach to CRM with full personalisation

Expand paid media opportunity

Develop aftersales customer offer

MOTs in house

Service plans/ product sales trials

Motorpoint is extremely well positioned to accelerate growth and make significant market share gains while capitalising on the above priorities to improve the customer offering and increase efficiency.

The Motorpoint Virtuous Circle remains at the core of everything we do

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 do business.

The Virtuous Circle begins with our employees. We are extremely pleased to be named by the Sunday Times as one of the Top 115 best big places to work in 2025.

We measured team satisfaction in H2 FY25 with a nationwide survey. Our response rate was an excellent 90%, and we achieved an overall engagement score of 83%, ahead of the industry benchmark. Our goals in FY25 were to increase communication through regular one to ones, All Hands meetings and relaunching Learning and Development courses, all of which have been very successful. As is the norm here at Motorpoint for many years, nobody works on their birthday and our "One Big Dream" initiative (two hours off) can be used monthly for the team's fulfilment.  As the pace of business expansion increases, and we open more stores, recruiting high calibre team members will be especially important, and we will remain focused on not only hiring the strongest talent, but also on training and culture enhancement.

We believe that the engagement of our team is directly correlated to our customers' satisfaction. As we innovate our omnichannel customer experiences, our highly engaged team continues to deliver what we believe is a market leading proposition of Choice, Value, and Quality to our loyal customers with an unerring focus on customer satisfaction. Our NPS for sold vehicles did dip slightly in the first half to 77, levels last seen in FY19 and FY20. However, following strong focus across the whole business, our NPS score improved to above 80 in the second half, and finished FY25 at record levels (Q4 FY25: 84).

The final piece of our Virtuous Circle is delivering for our shareholders. We are delighted that we have successfully returned to profitability. Cash generation has been strong which enabled us to successfully execute the share buyback, commence another, and restart our progressive dividend programme, whilst not having to compromise on strategic investment.

Environmental, Social and Governance (ESG)

The ESG Committee has continued to lead on setting and refining our environmental, social, and governance objectives. Our ambition remains to be the UK's most environmentally responsible used car retailer. Over the reporting period, we have made tangible progress against our ESG targets.

We have achieved further reductions in energy consumption, with Scope 1 and 2 emissions and business travel in total down 4.9% compared to the previous period, on a same space basis. During the year, we cut total waste by more than 140 tonnes (15.6%) despite increased business activity, underscoring our commitment to operational sustainability. Through close collaboration with supply chain partners, we are embedding responsible environmental practices across operations. A particular highlight is our initiative to repurpose end of life tyres for use in community playground infrastructure. Following increased public interest in March 2025 which reported industry malpractices relating to the disposal of tyres, we reaffirm that all our tyre recycling is conducted domestically in accordance with stringent UK standards.

Social responsibility continues to be a key area of focus. We conducted our external employee engagement and wellbeing survey in partnership with WorkL, which achieved a 90% response rate across the business. The overall Happiness Score was 83%, a rating that is independently classified as excellent. This, along with the Sunday Times' recognition of Motorpoint being one of the best big places to work in 2025, provides evidence that we continue to make excellent progress.

Outlook

Positive momentum has continued into FY26:

·      Delivered retail volume growth across April and May (against tougher prior year comparatives), and profitability increased on previous year

·      Vehicle pricing remains generally stable

·      Metal margins further strengthening, aided by data insight

·      Growing supply from our Sell Your Car (SYC) channel

·      Ancillary product performance positive, supported by new products

·      NPS running at all time high

We expect ongoing macroeconomic pressures to generally ease, with further, moderate reductions in interest rates and supply of nearly new used vehicles should continue to slowly increase. However, we remain mindful consumer confidence in the near term remains uncertain. We will continue to prudently manage the cost base despite labour inflation headwinds.

Mark Carpenter

Chief Executive Officer

12 June 2025

FINANCIAL REVIEW

Group financial performance headlines

We experienced strong retail volume growth of 13.9% with 59.9k vehicles sold (FY24: 52.6k) and significantly outperformed the used car market. Growth was supported by some easing of economic headwinds. Revenue increased to £1,173.1m (FY24: £1,086.6m).

Gross profit was £90.8m (FY24: £73.1m). Gross margin improved in the year to 7.7% (FY24: 6.7%). Increased metal margin (the difference between selling and buying price of a vehicle), through use of data and improved stock management, and ancillary product performance, offset the impact of lower finance commissions. Finance attachment rates influenced by higher cost of finance.

Operating expenses (before the exceptional items which were incurred in FY24) increased by 7.1% to £78.1m (FY24: £72.9m), largely reflecting a rise in headcount to keep up with demand driven by the growth in retail sales and general inflation, along with the part year costs of an additional store.

There were no exceptional items in FY25 (FY24: Net exceptional items before taxation £(2.2)m).

Profit before taxation improved to £4.1m (FY24: Loss before taxation £(10.4)m). Finance costs reduced moderately to £9.4m from £9.8m in FY24. 

Cash remained in a good position, supported by a return to profitability, and despite the completed share buyback programme, which resulted in a total cash cost of £4.7m in the year, and the purchase of shares to satisfy Employee Benefit Trust (EBT) obligations of £3.8m. Significant cash was also incurred on the expansion of our Derby site, including the purchase of the freehold and surrounding land (£4.7m). Cash at 31 March 2025 was £6.6m (31 March 2024: £9.2m), and this reduction was further influenced by high levels of vehicle purchasing towards the end of the month to satisfy demand (there is a short delay while stock finance is secured against the purchase).

The financial statements as at 1 April 2023 and at 31 March 2024 have been restated to reflect the impact of a misstatement in the previous years' financial statements. Specifically, the restatement corrects an understatement of right of use assets and lease liabilities for the periods mentioned. As a result, both right of use assets and lease liabilities have increased by £2.3m as at 1 April 2023 and both have increased by £0.3m as at 31 March 2024. This resulted from the receipt of back dated rent review invoices. There is no restatement required to the statement of comprehensive income.

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.

Retail

Revenue from retail customers was up 10.5% to £1,028.4m (FY24: £931.1m), with 59.9k (FY24: 52.6k) vehicles sold (an increase of 13.9%). The strong growth moderated in the final quarter when we started to lap tougher prior year comparatives. Consumer demand improved in FY25, and we benefited from keener pricing and a more affordable stock mix, along with continued digital enhancements to improve the customer experience.

Gross margin of 7.8% was a significant improvement on the previous year (FY24: 6.9%). This reflected our focus on data led pricing, stock management and a better ancillary product performance, in part offset by lower finance commission. We would expect finance attachment rates to improve as and when interest rates reduce. Ancillary performance was helped by the introduction of a new warranty product, and post year end we also introduced alloy wheel and paint protection offers.

Retail gross profit per unit increased to £1,335 (FY24: £1,222), reflecting the above. Preparation and transport costs increased slightly due to vehicle age and quality standard targets, and the increased number of vehicle moves to avoid stock ageing issues.

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Our 21st store opened in December 2024 in Norwich and is trading well. This store marks the recommencement of our new store opening programme, and a return to larger pitch capacity sites. Our original store at Derby was also significantly enhanced during the year at a cost of £4.7m.

Wholesale

Wholesale revenue via Auction4Cars.com, which sells vehicles that have been part exchanged by retail customers, or directly purchased from consumers, decreased by 6.9%. However, unit sales of 27.8k were up 9.4% (FY24: 25.4k). The growth disparity to overall revenue reflects changes to retail age and mileage criteria, since higher end product was sold through the retail platform. Overall profitability increased significantly, with profit per unit of £388 (FY24: £346), as focus remained on understanding reasons for loss making vehicles at every location.

Operating expenses before exceptional items in FY24

In the previous year, notable savings had been achieved in people costs following FY24's rightsizing programme and efficiencies resulting from technology investment. This cost scrutiny remained in FY25.

Operating expenses before exceptional items increased from £72.9m in FY24 to £78.1m. Full time equivalent employees increased to 779 at year end from 710 at 1 April 2024, as we cautiously recruited additional team members to satisfy increased demand. Therefore, basic salary costs, as well as bonus and commission payments accounted for much of the increase. Our costs incurred at site level fell following the cost focus in the year, despite inflationary pressures, with notable decreases in energy and bank card charges, resulting from a reduction in card payments. Property costs increased which reflected the new store and a rise in insurance costs. Marketing costs were at similar levels to last year (£10.6m versus £10.0m in FY24), but the customer acquisition cost per retail unit dropped to £177 (FY24: £190) as we continue to embrace technology to assess spend returns. 

Other Income before exceptional items in FY24

Other income of £0.8m largely related to final business interruption insurance receipts following the Derby flood last year (FY24: £1.3m).

Exceptional items

There were no exceptional items in FY25.

Net exceptional items before taxation of £(2.2)m in FY24 constituted restructuring costs for various redundancies associated with the headcount rightsizing programme (£1.1m), the write down of delivery vehicles which were being disposed of following the driver redundancies associated with the above (£0.2m), and cost relating to the disposal of the Milton Keynes lease (£0.5m), along with the net of assets written off following the Derby flood not covered by insurance.

On a gross basis in FY24, exceptional operating expenses were £7.7m which included the flood damaged assets written off and the restructuring costs. Exceptional other income of £5.6m included insurance receipts against those written off assets.

Interest

The Group's finance expense was £9.4m (FY24: £9.8m); reflecting prevailing interest rates.

Total interest charges on the stocking facilities in the period were £6.9m (FY24: £7.1m). Interest on lease liabilities was £2.1m (FY24: £2.0m) and on banking facilities £0.4m (FY24: £0.7m).

Taxation

The tax charge (FY24: credit) 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 return to profitability resulted in a tax charge of £0.9m (FY24: £2.0m credit, reflecting the loss in FY24).

Earnings per share

Basic earnings per share were 3.7p and diluted earnings per share were 3.6p (FY24: both loss per share (9.3)p).

Dividends

No dividend was paid in the period (FY24: £Nil). The Board has recommended a final dividend of 1 penny per share, with an associated cash cost of £0.9m (FY24: £Nil). Subject to approval at the AGM, this will be paid on 1 August 2025, to those shareholders on the register at close of business on 4 July 2025 (the record date).

Capital expenditure and disposals

Cash capital expenditure increased to £7.6m (FY24: £2.6m). This increase reflected a return to strategic investment in the year. Notable spends included the new store at Norwich, the expansion of the Derby site, including the freehold purchase, MOT testing ramps in preparation centres and various tech projects. The only notable disposal was the sale of several home delivery trucks.

Balance sheet

Net assets at year end fell from £31.1m to £26.9m. The return to profitability was offset by the impact of the cancellation of own shares and purchase of shares to satisfy EBT requirements. Working capital was proactively managed, ensuring that stock purchasing was fully maximised through the funding facilities.

The Group successfully completed the £5.0m purchase and cancellation of 3.6m shares during the year (which commenced in March 2024) and post year end the Board announced a further programme to purchase and cancel another 3.0m shares. In addition, 2.8m shares were bought in the year at a cash cost of £3.8m to satisfy future share scheme (EBT) requirements up until January 2028.

At the year end issued share capital comprised 86,619,822 ordinary shares (FY24: 89,969,630).

Non-current assets were £70.7m (31 March 2024 restated: £67.0m) made up of £15.4m of property, plant and equipment, £51.0m of right of use assets, intangible assets of £3.0m and a deferred tax asset of £1.3m (31 March 2024: £8.8m, £53.1m (restated), £3.7m and £1.4m respectively). The Group currently owns two freehold plots; land in Glasgow and the trading Derby site. All other properties are on leases of various lengths.

The Group closed the period with £151.4m of inventory, up from £102.4m at 31 March 2024. Days in stock for the year reduced to 43 days (FY24: 45 days). The inventory increase reflects a concerted effort to purchase more vehicles to satisfy demand.

As at 31 March 2025, the Group had £165.0m (31 March 2024: £150.0m) of stocking finance facilities available of which £122.4m (31 March 2024: £74.5m) was drawn. The Group had available stocking facilities with Black Horse Limited of £90.0m, and £75.0m with Lombard North Central Plc. During the year it was agreed with Black Horse Limited to increase the amount available to £90.0m, to reflect the increased inventory holdings.

The Group also has a £20.0m (FY24: £20.0m) facility with Santander UK Plc, split between £6.0m available as an uncommitted overdraft and £14.0m available as a revolving credit facility. At 31 March 2025 £Nil (31 March 2024: £Nil) was drawn on the facility, with cash and cash equivalents of £6.6m (31 March 2024: £9.2m). Post year end it was agreed with Santander UK Plc to extend the length to the arrangement by a further year until June 2027.

Trade and other receivables have reduced to £13.4m (31 March 2024: £19.2m), due to the favourable timing of receipts.

Trade and other payables, inclusive of the stock financing facilities, have increased during the year to £155.2m (31 March 2024: £107.1m) mainly reflecting the increased stocking facility utilisation.

Total lease liabilities of £57.4m (31 March 2024 restated: £59.6m) reflect the repayments made during the period, additions in Norwich and Chingford and the removal of the Derby lease following the purchase of the main site.

Cash flow

Cash reduced by £2.6m, and this fall was influenced by heavy stock buying in March as we built up for the busy Easter period, and the impact of the share buyback programme and purchase of shares for future share scheme requirements, along with increased capital expenditure to satisfy strategic requirements. Cash flow generated from operations was £29.0m inflow (FY24: £19.3m inflow) and therefore remains strong.

Capital Allocation

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.

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Our Capital Allocation Policy is aligned to strategy, whilst rewarding shareholders by maximising return through a disciplined deployment of cash generated.

Organic Growth and Margin Expansion

·      Grow retail volumes ahead of used car market, and margins, by investing in new stores, data, brand, technology and new income streams

Treatment of Excess Capital

·      The Board is committed to maintaining an efficient balance sheet; its expectation is that excess cash, over and above investment opportunities to support growth, will be returned to shareholders, in the form of share buybacks or dividends

Acquisitions

·      Consider only if earnings per share accretive, attractive risk profile and clear industry logic

In April 2025, the Company embarked on a second share buyback programme, with the aim of purchasing and cancelling 3.0m shares. This follows the recent successful buyback programme which resulted in the purchase and cancellation of 3.6m shares which completed in September 2024. In addition, the Board also proposed the payment of a final dividend of 1p per share at a cash cost of £0.9m.

Finance commission

Following the FCA Motor Market Review in March 2019, the Financial Conduct Authority ("FCA") issued a policy statement in July 2020 prohibiting the use of discretionary commission models from 28 January 2021, which the Group adhered to. The Group continues to believe that its historical practices were compliant with the law and regulations in place at that time.

On 11 January 2024, the FCA announced a section 166 review of historical motor finance commission arrangements and sales and planned at that time to communicate a decision on next steps in the second half of 2024, based on the evidence collated in the review. The FCA indicated that such steps could include establishing an industry wide consumer redress scheme and/or applying to the Financial Markets Test Case Scheme, to help resolve any contested legal issues of general importance.

Subsequently, on 25 October 2024, the Court of Appeal's judgment in Hopcraft v Close Brothers Ltd, Johnson v Firstrand Bank Ltd, and Wrench v Firstrand Bank Ltd stated that a broker could not lawfully receive a commission from a lender without the customer's fully informed consent to the payment. 

The FCA has extended the time period of its review into 2025. Since the ruling on 25 October 2024, the Group altered its selling processes to comply with new requirements from its lenders, which includes upfront full commission disclosure. 

The Supreme Court reviewed the judgements in April 2025 and its outcome is awaited.

The Group is not directly involved in the selling of finance products to consumers; instead refers consumers to third parties who administer and are responsible for the finance product themselves. As a result, the Directors do not consider that provisions are required to be made in respect of any exposures in this area.

Chris Morgan

Chief Financial Officer

12 June 2025

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2025

1      Detail on exceptional items is provided in note 5

The Group's activities all derive from continuing operations.

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2025

*See note 9 for explanation of restatements as at 31 March 2024 and 1 April 2023

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2025

1.   General information

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, England, United Kingdom, DE21 6LY. The consolidated financial statements of the Group as at and for the year ended 31 March 2025 comprise the Company, all of its subsidiaries and the Motorpoint Group Plc Employee Benefit Trust (the 'EBT'), together referred to as the 'Group'. These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the Group operates. All amounts have been rounded to the nearest one hundred thousand unless otherwise indicated.

Basis of preparation

The annual financial information presented in this preliminary announcement does not constitute the Company's statutory accounts for the years ended 31 March 2025 or 2024 but is based on, and consistent with, that in the audited financial statements for the year ended 31 March 2025, and those financial statements will be delivered to the Registrar of Companies following the Company's Annual General Meeting. Statutory financial statements for the year ended 31 March 2024 have been delivered to the Registrar of Companies, the auditors reported on those financial statements; their report was unmodified and did not contain a statement under either Section 498(2) or Section 498(3) of the Companies Act 2006.

The preliminary financial report for the year ended 31 March 2025 follows the same accounting policies as the 2024 Annual Report. This preliminary financial report does not include all of the notes of the type normally included in an annual financial report and should therefore be read in conjunction with the Motorpoint Group PLC 2024 Annual Report.

Going concern

In accordance with the UK Corporate Governance Code 2024, the Board has assessed the prospects of the Group over a period in excess of 12 months from the date of signing the Group financial statements as required by the 'Going Concern' provision, by selecting the period to the end of December 2026.

The Group has managed its net debt comfortably, with the revolving credit facility (RCF) undrawn at the year end. Total headroom, including undrawn stocking and banking facilities, and available cash, was £69.2m at the year end. During the year the Company renegotiated the terms of one of its stocking facilities, increasing its available headroom from £75.0m to £90.0m and thus total headroom from £150.0m to £165.0m.

Scenarios:

In making their assessment the Directors considered the Group's current balance sheet and operational cash flows, the availability of facilities, and stress testing of the key trading assumptions within the Group's plan. A range of scenarios have been assessed by the Directors, including various possible downside scenarios against the base case. The Directors opted to model a specific scenario designed to create the conditions required to breach covenants within the going concern period as well as a plausible downturn on the base case.

The selection of the assumptions or the sensitised case is inherently subjective, and whilst the Board considered these assumptions to reflect a downside scenario, the future impact of economic downturn, interest rate rises or inflating overhead costs is impossible to predict with absolute accuracy.

Whilst the same applies to the reverse stress test, we note that this scenario is specifically designed to demonstrate the point at which the covenants breach during the going concern period. The reverse stress test reflects, in the Board's opinion, a remote circumstance and numerous mitigating factors could be implemented to avoid a covenant breach in this scenario.

Scenario modelling has been considered throughout the year and at year end by management to formulate response options against moderate or severe downturns in sales volumes, potential margin pressures and possible cost challenges.

The Group's available headroom stands at £14.0m (FY24: £14.0m) through its revolving credit facility 'RCF' agreement. The Group also has an uncommitted overdraft facility of £6.0m which remains in place and was undrawn at the year end. Both are until June 2027 with the option to extend for a further one year if both parties are agreed. With respect to the Group's stocking facilities, these have increased from £150.0m to £165.0m during the year which the Board deem appropriate given current market conditions. In the eventuality of a period of prolonged economic downturn resulting in material reductions in sales volume or prices, as well as rising overhead costs, it is possible that the Group would need to negotiate changes to its current banking covenants, but such an extreme downturn is not currently considered plausible.

The Group continues to consider and monitor further potential mitigation actions it could take to strengthen its cash position and reduce operating costs in the event of a more severe downside scenario. Such cost reduction and cash preservation actions would include but are not limited to: reducing spend on specific variable cost lines including marketing and store trading expenses; team costs, most notably sales commissions; pausing new stock commitments; and reviewing expansionary capital spend, dividend and share buyback activity.

The Group has continued to demonstrate a flexible approach to trading, both in times of economic uncertainty and where opportunities exist. The current economic uncertainty may have downstream effects on the UK nearly new and used car market, but these remain uncertain. The Group has considered both restriction and ease of supply in its viability assessment as well as a range of other macroeconomic factors.

The Directors have also made use of the post year end trading performance to confirm that performance is in line with expectation. Whilst only a short period has passed since the year end, this evidence suggests that this is the case.

Based on this assessment, the Board confirms that it has a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the period to 31 December 2026.

The Board has determined that the period to December 2026 constitutes an appropriate period over which to provide its going concern assessment. This is the period detailed in our base case model which we approve each year as part of the strategic review. Whilst the Board has no reason to believe the Group will not be viable over a longer period, given the inherent uncertainty involved we believe this presents users of the Annual Report and Accounts with a reasonable degree of confidence while still providing a medium term perspective.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company, entities controlled by the Company (its subsidiaries) and the Motorpoint Group Plc Employee Benefit Trust made up to 31 March each year.

The EBT is consolidated on the basis that the Company has control, thus the assets and liabilities of the EBT are included in the balance sheet and shares held by the EBT in the Company are presented as a deduction from equity. The EBT has been solely set up for the purpose of issuing shares to Group employees to satisfy awards under the various share-based schemes and has no ability to access or use assets, or settle liabilities, of the Group.

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Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Intercompany transactions and balances between Group companies are eliminated on consolidation.

2.   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 (Motorpoint) and wholesale (Auction4Cars).

Cost of sales are specific and therefore directly attributable to each segment. Operating and financial expenses are not segregated for internal reporting purposes and hence have not been disclosed here.

3.   Revenue recognition

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 also sells wholesale vehicles in bulk transactions to auction houses. When this is the case revenue is recognised upon collection of the vehicles.

The Group operates a return policy which is consistent with the relevant consumer protection regulations. This includes a 14 day money back guarantee for home delivery customers. A returns provision is made against the estimated value of the products likely to be returned.

(ii) Sales of motor related services and commissions

Motor related services sales include commissions on finance introductions, extended guarantees and 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.

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.

Vehicle extended guarantees and asset protection where the Group is contractually responsible for future claims

Historically the Group sold vehicle extended guarantees and asset protection ('GAP insurance') where the Group is contractually responsible for future claims, and 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 where the Group is not contractually responsible for future claims

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. GAP insurance where the Group is not contractually responsible for future claims is no longer sold with the last sale occurring in FY24.

Finance commission

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.

4.   Operating profit / (loss)

Analysed as:

5.   Exceptional items

No exceptional items in FY25. Exceptional items in FY24 detailed below.

Restructuring costs

A business efficiency review in FY24 resulted in restructuring costs of £1.7m. This included a review and subsequent reduction in headcount, which resulted in redundancy costs of £1.1m. As part of this, the home delivery team was restructured and a related loss on disposal of home delivery trucks and an impairment of the remainder, totalling £0.2m (included within assets held for sale as at 31 March 2024) was incurred. Also, as part of this restructure, a decision was made to not progress with the opening of a new site. The cost of assignment of the lease, which included a one off payment to the new lease holder, and overhead costs incurred from the date a decision was made to dispose of the site, resulted in a loss on disposal of £0.4m. All restructuring was completed in FY24.

Asset write off

As a result of the flood which occurred at the Derby store on 21 October 2023, some fixed assets, and most of the inventory on site at the time was damaged and subsequently written off.  Fixed assets and inventory written off totalled £5.4m with £0.6m relating to other costs incurred as a result of the flood.

Insurance proceeds

Insurance proceeds relate to amounts received against insured written off fixed assets and inventory following the flood at the Derby store.

Income tax income

The tax implications of the exceptional items in FY24 was a credit of £0.2m.

6.   Earnings per share (EPS)

Basic and diluted EPS are calculated by dividing the earnings attributable to equity shareholders by the weighted average number of ordinary shares during the year.

The difference between the basic and diluted weighted average number of shares represents the dilutive effect of the currently operating schemes and the vested but not yet exercised options. This is shown in the reconciliation below. No dilution in FY24 due to the Group making a loss for the year.

There is a maximum of 2,239,636 additional options which have not been included in the dilutive calculation in relation to the SAYE schemes.

7.   Borrowings

During the year the Company renegotiated the terms of one of its stocking facilities, increasing available headroom from £150.0m to £165.0m. As at the reporting date £Nil of the revolving credit facility (FY24: £Nil) and £Nil of the overdraft (FY24: £Nil) was drawn down. The terms of the revolving credit facility and overdraft require a full repayment for a period of at least one day or more in each financial year and half year with no less than one month between repayments.

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The finance charge for utilising the revolving credit facility was dependent on the Group's borrowing ratios as well as the base rate of interest in effect. During the year ended 31 March 2025 interest was charged at 7.0% (FY24: 6.0%) per annum. The interest charged for the year of £0.4m (FY24: £0.7m) has been expensed as a finance cost.

8.   Share capital

1      During the period 3,349,808 shares were purchased by the Company in accordance with the terms of its share buyback programme, as announced on 26 January 2024. All of these shares were cancelled at 31 March 2025 as well as the 30,254 shares held in treasury as at 31 March 2024. The shares were acquired at an average price of 140.2p per share, with prices ranging from 132.0p to 144.5p.

In total the 3,570,063 shares bought back and cancelled represent 4.0% of the issued ordinary shares, at a purchase cost of £5.0m (FY24: 190,001 shares at a cost of £0.3m).

Shares are held on behalf of employees within the Employee Benefit Trust (EBT).

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The Group does not have a limited amount of authorised capital.

9.   Prior Year Restatement

Right-of-use assets and lease liabilities

The financial statements as at 1 April 2023 and for the year ended 31 March 2024, have been restated to reflect the impact of a misstatement in the previous years' financial statements. Specifically, the restatement corrects an understatement of right-of-use assets and lease liabilities for the periods mentioned. As a result, both right-of-use assets and lease liabilities have increased by £2.3m in the year ended 31 March 2023 and have increased by £0.3m in the year ended 31 March 2024.

The increase in right-of-use assets and lease liabilities relate to rent reviews which took place in the period of restatement. The variance arose this year with the receipt of back dated rent invoices in FY25 and late in FY24 in relation to prior rent reviews. Whilst there is a misstatement in the statement of financial position, the statement of comprehensive income and net reserves was materially correct in both of the previous accounting periods, and as such, no restatement is required to the statement of comprehensive income.

The following tables summarise the impact on the Group's consolidated financial statements:

10.   Post balance sheet events

On 3 April 2025, the Group announced that a share buyback programme would commence to repurchase up to 3 million ordinary shares of 1 penny each, with an aggregate purchase price of no more than approximately £4.0m.

Arrangements relating to the unsecured loan facility provided by Santander UK Plc (£20.0m split between £6.0m available as an uncommitted overdraft and £14.0m available as a revolving credit facility) were extended in May 2025 to June 2027 (previously June 2026), with the option to extend for a further one year period if agreed by both parties.