MARKET REPORT: Nearly-new automobile supplier Motorpoint shrugs off disaster within the automobile trade

With the struggles in the electric vehicles market grabbing headlines, the nearly new car retailer Motorpoint cheered investors by revealing that its business returned to profitability in the first half.

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

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

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

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

There was less momentum in the London markets, with the FTSE 100 index inching up 0.2 per cent, or 16.14 points, at 8274.75, and the FTSE 250 crept up 0.2 per cent, or 32.98 points, at 20601.63.

Driving profits: Motorpoint, which has 20 stores nationwide in the UK, reported a pretax profit of £2m for the six months to September 30, up from a £3.7m loss in the same period last year

Banks featured among the blue-chip fallers, reflecting interest rate uncertainties, with HSBC down 0.1 per cent, or 0.7p, to 731.9p and Barclays losing 0.8 per cent, or 2p, to 258.95p. 

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

Anglo American was also a FTSE 100 riser, up 0.5 per cent, or 12.5p, to 2385p, as the miner continued its divestment programme by selling a 6.6 per cent stake in its platinum unit for $527million through a share placing.

The offering was part of Anglo American’s broader plan to demerge the platinum business, which remains on track for completion by the middle of 2025.

BT Group added 1.5 per cent, or 2.35p, to 158.5p 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 charge. 

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

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

The surge came after the operator of online auctions saw annual pre-tax profit more than double as revenues rose by 5.0 per cent.

But Pets at Home slumped 17 per cent, or 47p, to 230p after cutting its full-year outlook, highlighting a subdued market. And metals processor Johnson Matthey shed 11.7 per cent, or 175p, to 1318p as it reported a drop in first half sales and profits, weighed down by a challenging macroeconomic backdrop.

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

Stock Watch – DG Innovate

There is still power in the electric vehicle market for DG Innovate, which got a jumpstart after it announced a joint venture with Indian group EVage to begin production of its Pareta electric motors.

The partnership, which follows a previous agreement in March, will establish a manufacturing facility in Punjab, India, with the UK firm holding a 60 per cent stake and EVage 40 per cent.

DG Innovate shares surged 15.8 per cent, or 0.02p, to 0.11p.