reports
- Carl Smith
Motorpoint (MOTR LN) - Return to profitability in FY25, dividend reint...
Motorpoint, the leading UK used car retailer and trade auction business, has released FY25 results in line with Zeus expectations. The results show double digit YoY volume growth, significant market share gains, faster stock turn, and a return to profitability. In our view, the announcement of the first dividend since the interim in FY20 (i.e. pre-Covid), demonstrates a return to normality for Motorpoint and confidence in the balance sheet. We see further scope for margin improvement and volume ...
- Carl Smith
Motorpoint (MOTR) - Market outperformance but interest costs hit FY26...
Last week’s positive trading update from Motorpoint indicated that underlying EBIT and PBT for FY25 (March y/e) are expected to be slightly ahead of our expectations. The Group reported strong outperformance of the used car market, improved digital capabilities and a return to profitable growth. Zeus forecasts for FY25 are increased to the midpoint of the guided ranges, resulting in a 3.5% increase to underlying EBIT to £13.5m and a 3.8% increase in underlying PBT to £4.2m. Management is cautiou...
- Carl Smith
Motorpoint (MOTR LN) - Momentum continues - BUY
Motorpoint’s interims showed a return to profit, strong trading momentum, market share gains and a reassurance that the disruption in the motor finance market is unlikely to have a material impact. Zeus estimates are unchanged following the results, but we note that there could be upside risk to these forecasts. We introduce a new price target of 200p per share and a BUY rating based on the strong momentum in operational and financial KPIs reported by the Group and the long-term growth outlook.
Motorpoint Group: 1 director
A director at Motorpoint Group bought 18,632 shares at 133p and the significance rating of the trade was 69/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly s...
Hybridan Small Cap Feast - 13 September 2024
13th September 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: None Delistings: None What’s baking in the oven? Our daily digest of news from UK Small Caps If you would like to unsubscribe, please email with “unsubscribe me”. Hybridan Chefs Banquet Buffet*** Greatland Gold 5.35p £272.3m The development an...
- Carl Smith
Motorpoint (MOTR LN) - Improving confidence, valuation on outer years ...
Motorpoint’s FY24 results confirmed a sharp decline in revenue and a widening loss before tax due to supply shortages, falling vehicle prices, and demand headwinds. We think the headwinds facing the Group have peaked and from here there should be tailwinds to profitability, including falling interest rates, improved consumer spending power, and more favourable supply conditions. Momentum over the last quarter of FY24 and start of FY25 has been encouraging. With a rationalised cost base, Motorpoi...
- Carl Smith
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...
- Carl Smith
- Carl Smith
- Carl Smith
- Mike Allen
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, ...
- Carl Smith
- Mike Allen
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.
- Liberum Research Team
- Liberum Research Team
- Mike Allen
Audio Note: Motorpoint - Further downgrades to forecasts
In this audio note, Zeus’ Mike Allen summarises the investment case for Motorpoint. 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. Listen to the audio note below, and read the full research here.
- Carl Smith
- Mike Allen
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...
- Alex O’Hanlon
- Joe Brent
- Sanjay Vidyarthi
LIBERUM: Motorpoint - Q3 gross margins hit
Motorpoint has continued to see robust sales growth in Q3, but has taken a hit to gross margins. This reflects lower finance commissions as Motorpoint keeps its APR on finance deals at competitive rates, despite rising interest rates. In addition, the recent decline in electric vehicle prices has impacted gross profit per unit. We cut our FY23E PBT from £7.0m to £0.5m and flow this through to outer years. We expect the business to remain in a y/e net cash position (£2.0m, ex leases). Another cut...
- Mike Allen
Audio Note: Motorpoint – Gaining share but shrinking profit
In this audio note, Zeus’ Mike Allen summarises the investment case for Motorpoint. Motorpoint’s H1 results (announced on 24 November) showed market share gains in the 0-4 year old used car market and an outperformance of total UK used car transactions, albeit with materially lower profits vs. H1 2022. Listen to the audio note below, and read the full research here.
- Carl Smith
- Mike Allen
Motorpoint (MOTR LN) - Gaining share but shrinking profit
Motorpoint’s H1 results (announced on 24 November) showed market share gains in the 0-4 year old used car market and an outperformance of total UK used car transactions, albeit with materially lower profits vs. H1 2022. Zeus forecasts are unchanged today, but nearly-new car supply constraints and costs pressures pose downside risks to our numbers. Shares now trade on a one-year forward P/E of 26.2x, falling to 14.9x by FY25 on Zeus forecasts, which is still a material premium to the average of i...
- Mike Allen
- Carl Smith
- Mike Allen
Motorpoint (MOTR LN) - Still expensive versus peers
Yesterday Motorpoint released a H1 trading update showing strong revenue growth but significantly lower profits and a worsening outlook. We reduce our EPS forecasts for FY23, FY24 and FY25 by 50%, 56% and 44%, respectively. This is driven by lower sales volumes, due to demand headwinds and continuing supply shortages, plus ongoing costs to improve the Group’s digital offering. Shares now trade on a one-year forward P/E of 25x, falling to 14x by FY25, still a material premium to the average of it...
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