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 ....
30 Jan 2023
Motorpoint (MOTR LN) - Further downgrades to forecasts
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Motorpoint (MOTR LN) - Further downgrades to forecasts
Motorpoint Group Plc (MOTR:LON) | 137 0 0.0% | Mkt Cap: 123.0m
- Published:
30 Jan 2023 -
Author:
Carl Smith, CFA -
Pages:
8
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 ....