The news of 18% Revenue growth is positive news despite ongoing consumer and wider economic uncertainty.
Companies: Motorpoint Group
Motorpoint (LON: MOTR) has issued a short trading update ahead of its interim results due next month, outlining its performance in the six months to September 30.
The update says the Group expects to report revenue growth of "over 18%" compared to H1 17, with both new and established sites performing well. The Group opened its 12th site in Sheffield in April.
The update also noted....
"The Group has delivered more normalised margin levels in the first half compared to the same period last year."
Management said they now expect to report underlying PBT of "circa £10.5m", up from the £6.4m in the same period last year.
Zeus Capital liked the "confident tone of the update" this morning and has upgraded its FY18 forecast as a result of the announcement, saying:
"We increase our revenue expectation by 4.2% with adjusted PBT forecasts raised 13.4%... We allow this growth to flow through the forecast period and now expect 2019E adj. PBT of £23.5m representing an 8.8% increase on our previous forecast."
Shares in MOTR are up 5% at the time of writing on Friday to 142p.
Despite the jump this morning the stock is still well below its all-time high last year of 240p in June, shortly after its admission trading in May 2016.
Shares dove from c. 200p to 140p in October last year and haven't really recovered since, with Zeus' research note in March saying they see "better opportunities elsewhere in the sector."