Motorpoint Group

Website: Motorpoint Group
Index: FTSE Small Cap
EPIC: MOTR
Supersector: Retail
Sector: General Retailers
Subsector: Specialty Retail
Market Cap: £113.72M
Payout Frequency: -

Motorpoint Group Dividend Analysis and Summary

Dividend Details

Declared: Interim dividend of 1.0p per share (H1 FY26; prior year interim: nil)
Ex-dividend date: 20/11/2025 (derived from record date)
Record date: 21/11/2025
Payment date: 12/12/2025
Cash cost: ~£0.8m (c. 83.6m shares)
Policy: in line with the Group’s reintroduced and progressive dividend policy
Recent shareholder returns: cumulative £10.9m since March 2024 (dividends + buybacks); latest buyback 3.0m shares cancelled (c. 3.5% of issued capital in H1), total reduction in shares in issue > 7% since March 2024

Coverage and Affordability

H1 FY26 basic EPS: 3.2p vs interim DPS 1.0p ? dividend cover ~3.2x
Operating cash flow (H1): £3.7m; interim cash cost £0.8m ? comfortable cash cover, albeit with inventory-led working capital outflow
Balance sheet: moved from net cash to small net debt £0.5m due to stock build and buybacks; substantial stocking facilities in place with seasonal uplift to £205m

Context and Trajectory

H1 trading improved: revenue +15%, EBITDA £13.6m (+22.5%), PBT £3.6m (+80%), ROCE 58.8%
Dividend reintroduced in FY25 (final 1.0p paid in H1 FY26) and now an interim 1.0p declared ? indicative annual run-rate of ~2.0p if maintained

Analysis: Sustainability and Growth

Sustainability: The 1.0p interim looks well covered by earnings (3.2x) and near-term cash generation, despite tighter working capital from higher inventory. The absolute cash outlay is modest.
Support from performance: Profitability and margins improved, with data-led pricing supporting “metal margins.” Finance commission income remains subdued, but higher retail volumes and stable used car pricing underpin earnings.
Capital allocation: Management is balancing investment (data/AI, new stores, aftersales) with distributions. Ongoing buybacks (7%+ share reduction since Mar-24) provide DPS accretion capacity; however, concurrent buybacks and stock build have nudged the group into small net debt.
Growth path: Progressive policy suggests gradual DPS growth if momentum continues. Execution on strategic initiatives (supply channels, AI-led demand capture, aftersales) should aid earnings resilience, which supports dividend progression.

Structural or Policy Factors Affecting Future Dividends

Share buybacks and cancellations (3.0m shares in H1; >7% reduction since Mar-24) enhance per-share metrics and capacity for DPS growth.
Seasonal uplift in stocking facilities to £205m in Q3/Q4 increases sales capacity but raises exposure to interest costs and working capital swings.
Planned sale and leaseback (Derby site, £4.9m held for sale) could release cash, adding flexibility for investment and distributions, though it increases lease obligations.
No demergers/M&A/share consolidations disclosed; dividend framed within a progressive policy and “excess cash” return framework (buybacks/dividends).

Risks and Flags to Dividend Stability

FCA motor finance redress: The FCA consultation (closing Dec-25) is a key uncertainty. Management believes brokers won’t be liable and has made no provision. An adverse outcome could impact capital allocation and future dividends.
Interest costs and funding: Finance expense rose to £4.9m on higher stock; reliance on stocking facilities elevates sensitivity to rates and inventory cycles.
Market cyclicality: Used car demand, pricing stability, and finance commission income remain macro-sensitive. Days-in-stock increased to 49, reflecting higher inventory heading into H2—execution risk if demand softens.
Capital return vs. investment balance: Continued buybacks alongside growth capex and working capital needs could constrain headroom if trading weakens.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
03/07/2025	01/08/2025	Final	1.00p	GBX
20/11/2025	12/12/2025	Interim	1.0000p	GBX

Total (Annual Dividends Per Share): 2.00p

Dividend Yield = Annual Dividends Per Share (2.00p) ÷ Share Price (136p) = 1.47%

Ex Dividend Date	Payment Date	Type	Amount	Currency
20/11/2025	12/12/2025	Interim	1.0000p	GBX
03/07/2025	01/08/2025	Final	1.00p	GBX
06/02/2020	13/03/2020	Interim	2.60p	GBX
15/08/2019	20/09/2019	Final	5.00p	GBX
07/02/2019	15/03/2019	Interim	2.50p	GBX
02/08/2018	14/09/2018	Final	4.60p	GBX
01/02/2018	16/03/2018	Interim	2.00p	GBX
03/08/2017	01/09/2017	Final	2.90p	GBX
16/02/2017	17/03/2017	Interim	1.33p	GBX

Year	Interim	Final	Currency	Total	Change
2020	2.600		GBX	2.600	-65.330
2019	2.500	5.000	GBX	7.500	13.630
2018	2.000	4.600	GBX	6.600	56.020
2017	1.330	2.900	GBX	4.230

Number of Shares:

Payment	Paid	Amount
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