Motorpoint (LSE:MOTR) said trading has continued strongly into FY27 with retail volumes up 15.0% across April and May, Sell Your Car purchases running at over 200 a week and profitability maintained.
EBITDA increased 15.1% to £27.5m while gross profit rose to £98.9m and retail volumes climbed 7.8% to a record 64,600 vehicles, lifting return on capital employed to 67.2% from 46.6% a year earlier.
"We embraced the tangible benefits of AI," said Mark Carpenter, Chief Executive Officer, reflecting on a year in which data became fundamental to the business.
Management said a data-led buying approach drove stronger and more stable metal margins, with consumer-sourced supply up materially, including 6,603 vehicles bought via Sell Your Car, an 85% increase, even as finance commission income remained subdued and finance expense rose with higher stock levels.
The group said operating expenditure grew well below gross profit despite store openings and wage pressure, and cash movement was influenced by increased stock purchases and the acquisition of two freehold sites for an aggregate £13.1m.
Post year-end the company has renegotiated its stock facility limit to £210m (FY25: £165m) to support higher inventory levels.
Shore Capital described it as another year of profit rebuild, and highlighted that management is growing more self-confident. The broker's thesis is that reopened sourcing channels, combined with a data-led, AI-supported buying approach and stronger consumer-sourced supply, are stabilising margins and underpinning the company's recovery in profitability.
Shore highlights post-year actions and trading as the next proof points, noting a renegotiated stock facility increased to £210m to support higher inventory and retail volumes running c.15% higher across April and May with Sell Your Car purchases above 200 vehicles per week.
