Motorpoint (MOTR LN) - Recovery underway

Motorpoint’s Q4 trading update highlighted improving trading conditions for the Group and consistent profitability in the quarter. Consumer demand has strengthened, vehicle supply has improved, and margins are recovering. A loss before tax is still expected for FY24, but we marginally reduce forecast losses from £8.7m to £8.2m. Our previously negative view on Motorpoint was primarily based on a structural vehicle supply shortage in its target market. Now that UK new car sales are recovering, fee

Motorpoint Group+ (MOTR, House Stock, 134p) - A materially improved Q4 FY24F

Motorpoint (MOTR LN) - Used car values drive FY24 profits lower, FY25 expectations maintained

Motorpoint’s Q3 trading update warned that rapid decreases in used car prices in the three months to December 2023 are expected to have a significant impact on profitability.

Motorpoint Group+ (MOTR, House Stock, 98p) - Short term headwinds remain - retained confidence in the future

Motorpoint (MOTR LN) - Interim results

Motorpoint’s interim results (to 30 Sep) show the impact of low used car supply, demand headwinds, and higher interest rates that lead to an adjusted loss before tax of £3.7m (H1 2023: £3.0m profit). The Group’s previously announced cost cutting measures and efficiency improvements are starting to show a positive impact, with adjusted loss before tax narrowing quarter on quarter. It is encouraging to see a stabilising net cash position also. We think Motorpoint’s recovery is in its early stages

Motorpoint Group+ (MOTR, House Stock, 77p) - Emerging light at the end of the tunnel

Motorpoint Group+ (MOTR, House Stock, 87p) - A right-sized business– forecasts retained

Motorpoint Group+ (MOTR, House Stock, 100p) - Doing the right things in a challenging market

Motorpoint (MOTR LN) - Tough FY23, new store rollouts paused

Motorpoint’s FY23 results show challenging trading conditions from limited nearly-new vehicle availability, higher interest rates, and rapidly falling electric vehicle values in its final quarter. Adjusted PBT (ex. SBP) decreased from £21.6m in FY22 to a loss of £0.2m in FY23 (Zeus: £0.0m). With further interest rate rises expected and tough macroeconomic conditions ahead, Motorpoint is pausing its rollout of new stores and focusing on cash preservation and improving profitability. As a result,

Motorpoint Group+ (MOTR, House Stock at 125p) - Riding out challenging conditions

Growth Companies - Share & share alike Sell in May?

Zeus: Automotive Retail sector analysis - April 2023

This report provides an updated view on the key themes facing the motor retail sector in 2023. On page 4 we discuss the conclusions of our July 2022 research and compare them to what happened in H2 2022. It is clear that many of the same themes (supply shortages, high inflation, sector consolidation, etc.) still apply – here we discuss how these themes have evolved.

SHORE CAPITAL - Motorpoint Group+ (MOTR) - House Stock at 131p

Motorpoint (MOTR LN) - Further downgrades to forecasts

Motorpoint released a Q3 trading update (Oct-Dec22) last week, mentioning a return to year-on-year volume growth in December but further reductions in profitability. Driven by weaker gross margin, we cut our underlying PBT forecasts from £6.7m to break even in FY23 and from £7.1m to £0.4m in FY24. The share price was broadly flat after the trading update on Friday, suggesting that this was priced in and investors expect a recovery. However, we see strong competition and headwinds to profitabilit