Motorpoint Group PLC has released its final results for the year ended 31 March 2024, reporting a challenging year driven by macroeconomic headwinds but a return to profitability in Q4 and good momentum going into FY25. The company's revenue decreased by 24.6% to £1,086.6m, influenced by market headwinds, stock mix, and vehicle price deflation. Retail volumes declined by 8.2% in the year but recovered strongly in the final quarter, growing 8.9% on the equivalent quarter in FY23.

The gross profit declined by 14.7%, reflecting the volume decline and reduced finance commissions, which were influenced by the high-interest rate environment. However, gross profit accelerated in the final quarter due to strengthening volume growth and improved data-driven vehicle pricing activity. The underlying operating expenditure reduced by 8.0%, due to restructuring and lower marketing spend as performance marketing was prioritized.

The company reported a total loss after taxation of £(8.4)m, with the main drivers being the volume decline and the impact of high-interest rates. However, there was a strong improvement in cash, despite lower profitability, reflecting working capital management and reduced capital investment. The company also reported a positive start to FY25, with double-digit growth in retail sales volumes and stable used car prices.

Motorpoint Group PLC's operational and strategic highlights included prioritizing improving unit metal margins, reducing operating costs, and generating cash rather than pursuing continued market share growth, focusing on stock management, technology investment, automation benefits, and strong progress against ESG objectives. The company also commenced a share buyback program in March 2024.

Looking ahead, the company envisages that 2023's difficult macro conditions will continue to ease with customer sentiment improving, and supply should increase following new car registration growth and used car market expansion. Therefore, they believe there is substantial potential to realize strong profitable growth and cash generation as they leverage their lower cost base with increased volumes. The CEO, Mark Carpenter, commented, "The past financial year was the most difficult in our history, with multiple negative headwinds impacting our business." However, he expressed confidence in the business's ability to continue the Q4 FY24 trend of profitable growth and to reset and re-energize their strategic goals, including further new store opportunities, against their long-term ambition to lead the UK used car market.