Motorpoint eyes H1 revenue growth

Motorpoint says it expects to report about 11% revenue growth underpinned by a positive like-for-like performance in H1.

"Because of the uncertainty around the result of the EU referendum, management has invested in margin to protect the Group's good level of stock turn, and managed its stock levels carefully," the company said.

"Accordingly, the volume and margin performance in the first half is behind original management expectations.

"The Group has opened three new sites in the last twelve months and although these are yet to make a positive contribution, are performing broadly to plan. Management is confident that these new sites will deliver a solid performance in the second half and beyond.

"The Group's unique and flexible stock sourcing model, combined with new car registration figures from the Society of Motor Manufacturers and Traders ("SMMT"), which show continued growth in fleet registrations, provides a strong supply outlook as a significant proportion of stock is sourced from fleet companies.

"Early indications in H2 are also showing improving margin trends.

"With an improved contribution from the new site openings, good supply and an improving margin outlook, management foresees a stronger H2 weighting with net margins moving back to more normal levels.

"The pipeline of potential new sites remains encouraging, and positive progress is being made on a number of options."

At 9:28am: (LON:MOTR) Motorpoint Group Plc share price was -28.37p at 138.63p