Motorpoint Group PLC, the UK's leading independent omnichannel vehicle retailer, has provided a trading update for the quarter ended 31 December 2023 and announced the commencement of a share buyback program. The company reported an improvement in retail volume performance through Q3, with momentum continuing into January. However, profitability was adversely impacted by sharp downward used car price adjustments, leading to a reduction in average selling price. Despite challenges, the company's net cash remained positive as of 31 December 2023.

The Board's expectations for FY25 profitability remain unchanged, and retail volumes in January 2024 are expected to be at their highest levels since August 2022. The company's Net Promoter Score was industry-leading at 83 in Q3, up from 80 in Q2. Motorpoint also announced the commencement of a share buyback program, aiming to repurchase up to 5 million ordinary shares, representing approximately 5% of the company's Ordinary Shares, with an aggregate purchase price of approximately £5m.

The company's Chief Executive Officer, Mark Carpenter, expressed confidence in the Group's ability to emerge from the challenging consumer environment as a more efficient business. He highlighted signs of easing macroeconomic headwinds and renewed consumer confidence, leading to an expected increase in market size and demand. The company is well-positioned to seize growth opportunities despite the correction in used car values, with optimism for improved financial performance in FY25.

Motorpoint has appointed Numis Securities Limited to manage the share buyback program. The Board has concluded that the program is an attractive use of the company's resources and beneficial for all shareholders. The share buyback will be conducted in accordance with the general authority to repurchase shares granted by the Group's shareholders at the 2022 Annual General Meeting and within the parameters prescribed by the Market Abuse Regulation 596/2014/EU.