Motorpoint, a prominent figure in the British car dealer news, reported a pre-tax loss of £0.3m for the financial year ending 31st March 2023, contrasting starkly with the previous year's record profit of £21.5m. According to the company's bosses, the reasons behind this downturn include stock shortages, falling values of used Electric Vehicles (EVs), and climbing finance costs. The firm's investment of £6.1m towards strategic objectives also contributed to the overall loss, despite reporting an 8.9% increase in revenue, amounting to £1.44bn.

This piece of motor trade news indicates a shift in the industry dynamics, as outlined in the comprehensive accounts published via the London Stock Exchange. Despite lower profitability, Motorpoint CEO, Mark Carpenter, optimistically stated that the company would successfully navigate the current market conditions. The firm sold 89,700 cars in FY23, including 137% more EVs compared to 2022, despite their depreciating values. A decrease in online sales from 60% to 37.5% was noted, even as e-commerce revenue rose by 5.7% to £660.5m.

Notwithstanding the loss, Motorpoint demonstrated resilience and growth potential. The company's market share in the targeted 0-4 year-old car range increased from 3.1% in 2022 to 3.5% in 2023. This motor trade news story reveals a company continuing to invest in its growth, opening two new sites in Edinburgh and Coventry, and introducing a showroom in Ipswich, bringing its total stores to 20.

Motorpoint's ability to achieve record revenues and increased market share in the face of rising finance costs, limited stock availability, and the downturn of the EV market underlines the strength and resilience of its business model. Despite the challenging macroeconomic and industry environment, the firm's strategy allows it to continue increasing its market share and, as the UK economy normalises, enhance profitability significantly.

(Source: cardealermagazine.co.uk)