Motorpoint pledges to double turnover after taking hit from pandemic
Independent car retailer Motorpoint has revealed plans to double turnover to £2 billion after taking a financial hit from the pandemic and government imposed lockdowns.
The firm, which has branches at Oldbury and Aston in Birmingham, saw a fall in both revenue and profits for its full-year to March 31. Turnover for the year fell almost 30 per cent to £721.4 million, while profit before tax almost halved – down to £9.7 million.
Motorpoint’s new strategy will see it aim to grow its online revenue to more than £1 billion a year and open 12 new sales and collection branches. It also wants to leverage its Auction4Cars.com platform to accommodate new supply channels.
About 68,000 vehicles sold in the year, including 25,000 via the Group's Auction4Cars.com purely E-commerce platform. More than 9,000 cars were delivered through free home delivery which was fully launched in May 2020.
Mark Carpenter, CEO of Motorpoint, said: “I am delighted with our performance in the year given the external challenges faced as we have transformed our capability by continuing to invest in our E-commerce execution. We now have a fully scaled home delivery service, an integrated, end-to-end digital customer journey, additional capacity to grow through our increased preparation and branch presence, and an ambitious growth strategy to more than double revenue and profit in the medium term through increased investment in technology, marketing, data and talent.
“Motorpoint is already well advanced on its journey to become the dominant E-commerce led omnichannel used car retailer in the UK with an unrivalled consumer offering in the nearly new market, coupled with a digital-led auction channel with huge potential. We will continue investing in the business to achieve our medium term goal of at least doubling revenue and growing E-commerce revenue to over £1 billion.
“I believe Motorpoint is the best in class in the nearly new car market with leading national brand awareness metrics, an unrivalled heritage, enhanced digital presence and expertise that will ensure we continue to strengthen our competitive position. We now have an opportunity to grow rapidly as we continue our transformation into an E-commerce led business with huge potential.”
