There aren't too many companies directly blaming the EU referendum for poor results. But bosses at newly listed 'car supermarket' Motorpoint (MOTR) are doing exactly that. Chief executive Mark Carpenter said the retailer of 'new and nearly new' cars (up to three-years old) was forced to take "direct action" on prices as demand slowed in the lead up to the vote, with the impact on margins exacerbated by higher costs from new openings. Hence the crash in pre-tax profits.
Mr Carpenter said the group had also been conservative about how much stock it held over the summer, which had a direct impact on volumes towards the end of the first half. But sales are still up. That's because the group opened two more sites during the period - Castleford and Oldbury - bringing the estate total to 11 retail sites, which operate in conjunction with the group's website. Regardless, Mr Carpenter says the top-line growth is "not good enough" and is looking forward to a stronger second half. He said margins had returned to normal levels, while new marketing campaigns are also in the works to help pep up demand.
Analysts at Numis expect pre-tax profits of £15.5m for the year ending March 2017, giving EPS of 12.4p (FY2016: £17.8m/14.3p).
| MOTORPOINT (MOTR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 131p | MARKET VALUE: | £131m | |
| TOUCH: | 129-132p | 12-MONTH HIGH: | 246p | LOW: 123p |
| DIVIDEND YIELD: | 1.0% | PE RATIO: | na | |
| NET ASSET VALUE: | 8.3p | NET CASH: | £6.5m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015* | 367 | 10.2 | 8.0 | nil |
| 2016 | 409 | 2.4 | 1.3 | 1.33 |
| % change | +11 | -76 | -84 | - |
Ex-div: 16 Feb Payment: 17 Mar *Motorpoint listed in May 2016 | ||||
