Motorpoint Group unveils share buyback after returning to profit

• The Derby-based vehicle seller plans to purchase up to £4m of its shares 

By HARRY WISE

Updated: 13:11 BST, 3 April 2025

Motorpoint Group will look to return cash to investors after improved used car sales helped the retailer rebound to profitability last year. 

The Derby-based dealership firm plans to purchase up to £4million of its shares at 1 pence each, equivalent to around 3.5 per cent of its share capital.

Despite acknowledging the significant investment needed to fund expansion, the firm said a buyback was ‘an attractive use’ of resources given its balance sheet has no structural debt and healthy cash generation levels.

Motorpoint’s retail volumes rose by 14 per cent in the year ending March 2025, thanks to a ‘strong outperformance’ of the secondhand vehicle market.

Among cars between zero and six years old, the company’s sales jumped by 14.8 per cent, compared to wider industry growth of 2.8 per cent.

Trading did moderate during the fourth quarter owing to tougher comparatives and a weaker consumer backdrop, although Motorpoint noted margins remained ‘generally stable’.

Repurchase: Motorpoint Group has announced a share buyback programme after high used car sales helped the retailer rebound to profitability

Consequently, the business anticipates reporting pre-tax profits of between £4million and £4.3million, having made a £10.4million loss the prior year.

Motorpoint’s loss came after two successive years of record turnover resulting from shortages of semiconductors limiting automotive production and sending used car prices soaring.

Sales further benefited from the release of pent-up demand following the loosening of Covid-related travel restrictions.

Revenue then tumbled as elevated inflation and interest rates dampened demand, and improved supply chain issues sent used car prices tumbling.

Motorpoint responded to the subdued market conditions by broadening its range of products to include vehicles under five years old and 50,000 miles towards the end of their design life.

Mark Carpenter, its chief executive, said: ‘Notwithstanding the ongoing consumer and macroeconomic environment, Motorpoint is in a strong position to grow further, and I am cautiously optimistic for the FY26 outlook.’

Motorpoint Group shares were 1.2 per cent higher at 128p on Thursday morning, but have still shrunk by over two-thirds since peaking at around 401p four years ago.

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Motorpoint Group unveils share buyback after returning to profit

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