Motorpoint Group PLC on Wednesday said it has returned to profit, following a strong first-half performance.

The Derby-based car retailer reported pretax profit of £2.0 million for the six months ended September 30, swinging from a £4.7 million loss a year before.

However, revenue fell by 7.3% to £563.1 million for the same period, down from £607.2 million a year before.

Motorpoint attributed the increased profit to strong growth in retail volumes, and improved retail profit margins.

Retail vehicles sold rose by 17% to 30,300 in the first half, from 25,800 a year before.

Motorpoint noted that the revenue decrease reflected a more affordable vehicle mix and price deflation.

Motorpoint declared no interim dividend during the period, unchanged year-on-year.

Motorpoint said it has carried its ‘strong momentum’ into the second-half, remaining profitable in October.

Chief Executive Mark Carpenter said: ‘I am pleased with our solid performance in the first half of the financial year, which was marked by a return to profitability following several years of considerable headwinds that have impacted our industry.’

‘Following the challenges faced in recent times, we remain cautious as supply slowly improves and macroeconomic pressures continue to ease, while demonstrating our return to profitability, as we plan courses of action to accelerate this growth.’

Motorpoint shares were up 13% at 133.00 pence each in London on Wednesday afternoon.

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