Motorpoint has reported an 81% increase in first-half pre-tax profit after selling a record number of vehicles, with improvements in pricing, marketing, and inventory management supporting stronger margins.
The used-car retailer generated revenue of £686.7m during the six months ended 30 September 2026, up 6% from £647.7m during the equivalent period last year.
Pre-tax profit increased from £3.6m to £6.5m, while gross profit rose 11.9% to £55.4m. Earnings before interest, tax, depreciation, and amortisation increased 19.9% to £16.3m.
Motorpoint sold 35,430 vehicles to retail customers, representing growth of 7.6% and its highest first-half retail sales volume.
Including wholesale transactions, total vehicle sales reached approximately 51,270, an increase of 8.2% compared with the previous year.
The company attributed its improved financial performance to increased sales volumes, better gross margins, and continued investment in systems supporting commercial decision-making.
Retail gross profit per vehicle increased to £1,431 from £1,349, while the average marketing cost of acquiring a retail customer declined to £143 from £149.
The average margin generated directly from vehicle sales, before other income associated with the transaction, increased to £1,266 per vehicle.
These improvements followed investment in pricing analysis, vehicle allocation, and digital marketing capabilities, including the company’s proprietary MotoAI platform.
Motorpoint uses data-driven systems to inform vehicle pricing, determine which locations should hold particular stock, and allocate advertising expenditure.
Chief executive Mark Carpenter said the company’s investment in technology and data had contributed to greater operating efficiency and improved commercial performance.
Store expansion forms next growth phase —
Motorpoint has outlined medium-term ambitions to increase annual retail sales beyond 120,000 vehicles and expand its network to between 30 and 35 large-format stores.
These are management targets rather than confirmed outcomes or guidance for the current financial year.
The group currently operates 21 stores, following the opening of a new location in Leeds during July and the closure of its smaller Ipswich operation in October.
Motorpoint said the Leeds site was trading ahead of its original expectations and was expected to become profitable during its first financial year.
The company anticipates that a mature new store could sell approximately 4,000 vehicles annually and contribute around £3m in pre-tax profit, subject to reaching its expected operating performance.
Alongside expansion of the physical network, Motorpoint intends to increase sales generated by its existing locations and digital channels.
The business has established medium-term targets for retail gross profit exceeding £1,550 per vehicle, earnings before interest, tax, depreciation, and amortisation above £550 per retail vehicle, and return on capital employed above 100%.
Its latest return on capital employed was 81%, providing a comparison with the longer-term objective.
Trading remained positive after the half-year period, with retail vehicle volumes increasing a further 9.7% during October compared with the same month last year.
However, higher interest rates and inflation remain potential constraints on customers’ ability to finance vehicle purchases. Motorpoint’s finance expenses increased from £4.9m to £5.3m during the first half.
Inventory also increased ahead of the company’s busier final quarter, with the average time vehicles remained in stock rising from 49 to 54 days.
The retailer has declared an interim dividend of 2p per share and maintained its full-year financial expectations following an earlier upgrade.
The combination of higher vehicle volumes, increased margins, and lower customer acquisition costs provides the operating basis for its planned expansion, while management continues to develop its pricing and inventory technology.
