MARKET REPORT: Pre-owned car dealer Motorpoint ignores crisis in automobile industry

As struggles in the electric vehicle market hit the headlines, nearly new car retailer Motorpoint cheered investors by revealing its business returned to profitability in the first half.

The company, which has 20 stores across the UK, reported a pre-tax profit of £2m for the six months to September 30, a significant turnaround from a loss of £3.7m in the same period last year.

This came even as revenue fell 7 per cent to £563.1 million due to lower vehicle prices.

Motorpoint attributed the profit improvement to a 17.4 percent increase in retail vehicle sales and improved gross margins, driven by better stock management and data-driven pricing.

The company also highlighted a stabilizing market for used car prices and said it expects economic pressures, such as high interest rates, to ease. All of this helped the shares accelerate 11.9 per cent, or 14p, to 131.25p.

There was less momentum in London markets, with the FTSE 100 index rising 0.2 per cent, or 16.14 points, to 8,274.75, and the FTSE 250 rising 0.2 per cent, or 32.98 points. , to 20,601.63.

Banks were among those falling, reflecting uncertainties over interest rates: HSBC lost 0.1 per cent, or 0.7 pence, to 731.9 pence and Barclays lost 0.8 per cent, or 2p, at 258.95p.

NatWest fell in early trading but recovered to close up 0.3 per cent, or 1p, at 392.5p. Standard Chartered also advanced, rising 1.4 per cent, or 13.6 pence, to 973.4 pence, as the lender said it is considering selling several businesses in Africa to finance investments on the continent.

Anglo American also rose on the FTSE 100, up 0.5 per cent, or 12.5 pence, to 2,385 pence, as the miner continued its divestment program by selling a 6.6 per cent stake in its platinum unit for 527 million dollars through a share placement.

The offer was part of Anglo American’s broader plan to spin off the platinum business, which remains on track to be completed by mid-2025.

BT Group added 1.5 per cent, or 2.35 pence, to 158.5 pence, as the telecoms giant said Marc Allera will step down as chief executive of its consumer division on March 31, 2025. , after nine years in office.

Claire Gillies will take over as the unit’s chief executive-designate on December 10. Insurer Aviva, which rose 1.6 per cent, or 7.5p, to 489.3p, was boosted by an upgrade to outperform analysts at KBW.

Auction Technology proved to be the best performer on the FTSE 250, jumping 15.1 per cent, or 66.5p, to 507p.

The rise came after the online auction operator more than doubled annual pre-tax profit as revenue rose 5.0 percent.

But Pets at Home fell 17 per cent, or 47p, to 230p after cutting its full-year outlook, highlighting a weakening market. And metals processor Johnson Matthey lost 11.7 per cent, or 175 pence, to 1,318 pence, as it reported a drop in first-half sales and profits, weighed down by a challenging macroeconomic backdrop.

Among small caps, Faron Pharma gained 7.8 per cent, or 12.5 pence, to 172.5 pence after the biotech company reported strong data from the trial of its lead drug, Bexmarilimab, which is being launched. testing for a rare and aggressive blood cancer.