Motorpoint Reports £10m Loss Due to Industry-Wide Shortage of Used Vehicles

Motorpoint, one of the largest used car supermarkets in the UK, recently reported a £10m loss following an industry-wide shortage of pre-owned vehicles. This loss marks the most difficult year in the company’s history, with CEO Mark Carpenter acknowledging the challenges faced in the past financial year.

The Derby-headquartered company saw a significant drop in revenue, falling from £1.4bn to £1bn, with retail volumes decreasing by eight per cent in the first half of the year. However, there was a glimmer of hope as Motorpoint bounced back by around nine per cent in the final two months of the period.

Carpenter remains optimistic about the future, citing the stronger performance seen in the second half of the year as a sign that the company can turn things around in 2025. He emphasized the resilience of Motorpoint’s cash generation and expressed confidence in the ability to scale profitability and cash generation as the market improves.

Looking ahead, Motorpoint expects the supply of used cars to increase in the coming months, easing stock shortages caused by a rise in people registering new cars. The company sees this as an opportunity for strong profit growth and cash generation, as it leverages its lower cost base with increased volumes to achieve its long-term ambition of leading the UK used car market.

Despite the challenges faced in the past year, Motorpoint is poised for a comeback, with a lean, technology-enabled business model and a strategic focus on growth and profitability. As the market improves and supply chain issues are resolved, Motorpoint is well-positioned to capitalize on the rebound and solidify its position as a key player in the UK used car market.