Motorpoint has stated that its loss before tax for the full year is expected to be in the "favourable end of management expectations", as it announced its latest trading update.

The omnichannel vehicle retailer recorded a "strong and profitable performance" in the opening three months of 2024 - Q4 in the group's financial report - with retail volumes increasing 9% year-on-year.

As a consequence, Motorpoint has reported that January, February and March have all been profitable months, as it anticipated in its Q3 report.

Motorpoint currently operates through its business-to-consumer platform and 20 stores across the UK. It also operates a purely online wholesale platform, auction4cars, selling vehicles to the wholesale business-to-business market that have been part exchanged by retail customers, or have been purchased directly from them by the group as part of its online car buying service.

Chief executive officer at Motorpoint , Mark Carpenter, said: "I am delighted that the difficult conditions experienced in 2023 have eased in Q4 and, combined with our focus on driving operational excellence through a programme we call brilliant basics, has meant that Q4 was characterised by consistent profitability.

"We are achieving growth, increasing stock turn and improving margins, and this is expected to continue into FY25 as supply improves following recent new car registration growth. I am therefore optimistic for FY25 and look forward to Motorpoint making the most of the growth opportunities ahead."

Motorpoint also said that margins gradually improved through Q4 as it increased stock turn and sold stock affected by the “abrupt” Q3 correction in used car values.

The group has also launched a share buyback scheme which will see the repurchase of up to five million shares. As of 31 March, over 220,000 shares had been repurchased.

Investment director at AJ Bell, Russ Mould, commented: "Things are looking up for the used car sector after Motorpoint reported an improvement in trading in recent months. Consumers under financial pressure have been pulling back from making big ticket purchases.

"The backdrop should improve further for Motorpoint once the Bank of England starts to reduce interest rates. That action could make households feel as if the worst is over and that they are able to get their finances back on track. It also helps that wage growth has been fairly decent, on average."

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