By Motorpoint Group announced on Wednesday that it witnessed a positive business performance throughout the first quarter and expects this trend to continue in the second quarter, despite the challenging macroeconomic conditions.
During the three months ending June 30, the UK vehicle retailer experienced further enhancements in margin and reductions in costs. They believe these improvements will enhance cash generation and profit, providing an opportunity for strategic investments.
Motorpoint acknowledged that persistently high inflation, increasing interest rates, and consumer uncertainty continue to impact used car demand. However, the company remains optimistic due to their escalating retail margin. This improvement is attributed to an expanding range of vehicle supply options and increased utilization of data to determine pricing.
Although the enhanced margin is a positive development, Motorpoint anticipates lower finance commissions. The introduction of higher interest rates has resulted in reduced finance uptake among consumers.
Despite the challenges, Motorpoint Group remains confident in its ability to emerge as a more efficient and valuable business in a normalized market. They are well-prepared to capitalize on significant opportunities.
As of 0725 GMT, Motorpoint Group shares were up 6.0 pence or 5.9% at 108.0 pence.
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