(Alliance News) - Motorpoint Group PLC on Thursday expressed confidence in its future as it posted an increase in profit for the first half of financial 2021 despite a significant fall in revenue
Shares in the car retailer were trading 2.0% lower at 294.08 pence each on Thursday morning in London.
For the six months ended September 30, Motorpoint posted pretax profit of GBP9.7 million widening 3.2% from GBP9.4 million the year prior. This was despite revenue falling 38% to GBP387.7 million from GBP533.9 million due to the enforced closure of retail branches and preparation centres from April to June due to Covid-19 restrictions.
The company noted that while revenue was hurt as a result of the closures, it was able to still recognise a profit for the half year as a result of strong trading following the reopening of its retail branches in June and July. The rise in profit was also aided by lower costs as operating expenses fell to GBP24.3 million from GBP29.1 million.
No interim dividend was declared due to the pandemic and its potential negative impact on future demand. For comparison, a dividend of 2.6p was paid for the first half of financial 2020.
Looking ahead, Chief Executive Mark Carpenter said: "Existing restrictions in place surrounding Covid-19 are likely to continue to put pressure on second half volumes as a result of diminished consumer confidence and customer mobility restrictions. It is also worth noting that the UK government's Brexit negotiations could further influence our future performance in unpredictable ways. Despite this, management remain confident that the group's digitally underpinned Home Delivery and Reserve & Collect offerings will continue to service our existing customers and help us access new markets."
As at September-end, Motorpoint had cash of GBP13.6 million, up from GBP10.3 million recorded on September 30, 2019.
By Ife Taiwo; ifetaiwo@alliancenews.com
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