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Revenue expected to rise at vehicle retailer

Revenue is expected to rise at Motorpoint Group, the Derby-based omnichannel vehicle retailer, according to an update of its performance for the full financial year ending March 31, 2022 (FY22).

The company expects to report revenue of £1.3bn, an 82% increase on the previous year (£722m). Meanwhile, Motorpoint expects to report operating profit and pre-tax profit for the year in line with board expectations.

The news comes as “expected strategic capital and operating costs increased in FY22 as [Motorpoint] invested more in future growth with a focus on technology and marketing.

In June 2021, the business announced targets to significantly increase its growth rate, with the aim of at least doubling FY20 revenues to over £2bn over the medium term, increasing e-commerce revenue to over £1 billion, by opening 12 new sales and collection branches, leveraging its e-commerce platform and increasing operational efficiency through automation and to additional technology investments as customers migrate to e-commerce channels.

The company says it is making good progress against these strategic goals.

Around 58% of transactions were made online in FY22, while e-commerce revenue reached £600m (FY21: £419m). Three new branches opened in the second half of FY22; Manchester, Maidstone and Portsmouth.

Meanwhile, the Motorpoint car buying service is now a fully automated digital first offering and the trading platform has now been upgraded to operate as an automated marketplace to include third-party vendors.

Mark Carpenter, Motorpoint CEO, said: “Despite the uncertain consumer outlook, the group’s continued confidence allows it to invest in its future growth strategies across multiple initiatives.

“The expansion of our technology team significantly increases our ability to innovate and scale our and platforms, both of which have huge potential for future growth. Motorpoint is the largest omnichannel vehicle retailer independent from the UK, and our value-based proposition continues to resonate as much with our customers today as it did 24 years ago.

“We remain confident in our medium-term strategic objectives and are excited about our potential for substantial growth as we continue to invest in our brand, infrastructure and technology.”