There’s no car like
a Motorpoint car
Motorpoint Group PLC | Annual Report and Accounts 2023
A B O U T U S
Car buying
made easy
M O T O R P O I N T I S
T H E U K ’ S L E A D I N G
R E TA I L E R O F N E A R LY
N E W V E H I C L E S .
Making car buying easy has been
our purpose for 25 years. It’s the
reason why we have such a rich
history of adapting to the needs
of our customers and continually
innovating to deliver the best car
buying experience possible.
Decades of putting our customers
at the centre of everything we
do has given us an unparalleled
understanding of what people want
when they buy a car.
This is why we believe so strongly
in giving our customers unrivalled
Choice, Value, Service and Quality,
There’s no car like a Motorpoint car.
For the latest investor relations, visit our website:
www.motorpointplc.com/investor-relations/why-invest/
C O N T E N T S
Strategic Report
03
2023 highlights
04
06
08
10
12
14
16
18
20
23
24
29
33
50
58
62
67
73
At a glance
Investment case
Our business and our market
The Car Buyer’s Champion
Our customers’ journey
Market overview
How we deliver value
Chair’s statement
Chief Executive’s statement
Key performance indicators
Our strategy
Section 172 statement
Environmental, Social and Governance
(ESG)
Task Force on Climate related
Financial Disclosures (‘TCFD’)
Financial review
Risk management
Principal risks and uncertainties
Non-financial information statement
Governance
76
Board of Directors
78
79
82
86
90
92
94
102
109
114
Introduction to governance
Corporate governance report
Audit Committee report
Nomination Committee report
ESG Committee report
Remuneration Committee report
Remuneration policy
Annual report on remuneration
Directors’ report
Statement of directors’ responsibilities
Financial Statements
116
Independent auditors’ report
122
123
124
125
126
154
155
156
160
161
162
Consolidated statement
of comprehensive income
Consolidated balance sheet
Consolidated statement
of changes in equity
Consolidated cash flow statement
Notes to the consolidated
financial statements
Company balance sheet
Company statement of changes in equity
Notes to the company
financial statements
Alternative performance measures
(’APMs’)
Glossary
Shareholder information & advisers
Motorpoint Group PLC | Annual Report and Accounts 2023
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GovernanceStrategic ReportFinancial Statements 0 2
Motorpoint Group PLC | Annual Report and Accounts 2023
2 0 2 3
H I G H L I G H T S
F I N A N C I A L H I G H L I G H T S
Record turnover
£1,440.2m
Online revenues
£660.5m
Vehicles sold
89.7k
Units sold online
60%
Loss before taxation
£(0.3)m
Gross profit per retail unit
£1,300
Vehicles sourced
from customers
23.8%
2023
2022
2023
2022
2023
2022
2023
2022
£1,440.2M
£1,322.3M
£660.5M
£624.9M
89.7K
97.7K
60%
60%
2023
£(0.3)M
2022
£21.5M
2023
2022
£1,300
£1,446
Market share
0–4 year old car market1
3.5%
Average share
30 min drive time from store
Ninth consecutive year in “The
UK’s Best Companies To Work For”2
8.9%
Top 100
Net Promoter Score (‘NPS’)
84
Our 20th store opened in Ipswich
in May 2023
20 stores
1. Based on data produced by the Society of Motor Manufacturers and Traders (‘SMMT’).
2. As per the results from The UK’s Best 100 Companies To Work For.
Motorpoint Group PLC | Annual Report and Accounts 2023
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GovernanceStrategic ReportFinancial Statements AT A G L A N C E
O U R P U R P O S E
Our purpose is to make car buying easy.
We’re here to help our customers buy
the car they want, in the way they want.
There’s no car like a Motorpoint car.
O U R V I S I O N
Our Vision is to be the Car Buyer’s
Champion, trusted to deliver unrivalled
Choice, Value, Service and Quality.
P E O P L E P O W E R E D
At our heart we are a people powered
business and it is our talented people
who help customers when purchasing a
vehicle from Motorpoint – giving them
the advice they’re looking for, ensuring
everything is to the standard they
expect and developing new innovations,
products and services that constantly
improve the purchasing process. This is
evidenced by our industry leading
NPS ratings.
Find out more on pages 40 - 47
O M N I C H A N N E L A N D
C U S T O M E R C E N T R I C
By focusing on making car buying easy
for our customers, we have been able
to create the very best omnichannel
experience – one that combines the
convenience and benefits of buying
online, Home Delivery and Reserve and
Collect with an extensive nationwide
retail network ensuring high levels of
quality, service and support.
Find out more on page 8
0 4 Motorpoint Group PLC | Annual Report and Accounts 2023
There’s no car like
a Motorpoint car
Our medium term strategy is to grow revenue to more than £2bn.
Expand wholesale and
E-commerce channels
Expanding our E-commerce
Auction4Cars.com platform and
grow new supply channels.
Increase customer
acquisition and retention
Increasing investment in our
customer proposition, marketing
capability and leveraging our data.
Led by online sales and fulfilment
capacity increase in new markets.
Rapidly upscaling our
E-commerce capability
Substantial increase in technology,
data and marketing investment.
Operational efficiency through
technology and innovation
Further automation and technology
investment as sales migrate to
E-commerce channels.
Underpinned by a commitment to:
Stakeholder
engagement
Our People
and Culture
Our
Communities
and the
Environment
Governance
Risk
Management
pages 29 - 32
pages 40 - 47
pages 44 - 45
pages 75 - 114
pages 62 - 72
Motorpoint Group PLC | Annual Report and Accounts 2023
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GovernanceStrategic ReportFinancial Statements
I N V E S T M E N T C A S E
What makes
us different
Our omnichannel approach
gives customers the choice
of buying cars through our
store network or online,
or increasingly, through a
combination of both channels.
25 years of customer insight
and innovation
Retail sales of nearly new vehicles –
focused on those under four years and
less than 30,000 miles
Always low prices delivering great value
Trade sales through digital auction
site for vehicles not meeting our retail
criteria
Nationwide store network
Buying cars direct from customers
Inventory management, vehicle
reconditioning, logistics and store
operations expertise
0 6 Motorpoint Group PLC | Annual Report and Accounts 2023
Digital transformation
providing opportunities
for growth
Customers prefer to buy used cars on
an omnichannel basis, combining digital
channels with physical touchpoints
Relentless focus
on E-commerce
Increasing shift to online provides
operating model opportunities
Website improvements
boosting traffic
Significant investments in
technology and marketing
Expanding digitally led car
buying service
Motorpoint Group PLC | Annual Report and Accounts 2023
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GovernanceStrategic ReportFinancial Statements O U R B U S I N E S S A N D
O U R M A R K E T
A Group focused on
growth through two
distinct brands
M O T O R P O I N T
A U C T I O N 4 C A R S . C O M
Our retail offer of nearly new cars that are mostly
under four years old and have completed less than
30,000 miles provides customers with an omnichannel
purchasing journey combining online with 20 retail
stores nationwide (at the time of publication of this
report). We also offer a large range of commercial
vehicles under the Motorpoint brand.
Auction4Cars.com, a business to business entirely online
auction marketplace platform, allows an efficient and
quick route for sale of part exchange vehicles which do
not fall into our nearly new retail criteria.
<4 years
<30,000 miles
>4 years
>30,000 miles
Online & in store
Nearly new consumer vehicles
Light commercial vehicles
Online only
Wholesale vehicles
C O N S U M E R O M N I C H A N N E L
#1
Value retailer
84
NPS
25
Years as a
leading player
in the nearly
new market
Low
Cost base
£130
Lowest online
average buyers’
fees
0 8
Motorpoint Group PLC | Annual Report and Accounts 2023
Motorpoint Group PLC | Annual Report and Accounts 2023
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GovernanceStrategic ReportFinancial Statements T H E R E ’ S N O C A R L I K E
A M O T O R P O I N T C A R
Our vision is to be the Car
Buyer’s Champion, trusted
to deliver unrivalled Choice,
Value, Service and Quality
C H O I C E
V A L U E
Choice for our customers means not only the model
and price range of available vehicles we stock,
but also the options through which they can view,
purchase, and take delivery of their vehicle such as
Same Day Driveaway, Home Delivery or Contactless
Collections.
We are able to secure the best stock at competitive
prices and we pass those savings on to our customers
ensuring we offer stand out vehicles at unbeatable
prices. We are also able to offer market leading financing
options and extended warranties for our customers.
555
makes and models in stock
99.5%
of vehicles priced Good,
Great or Low on AutoTrader
in FY23
S E R V I C E
Q U A L I T Y
We are car people, not sales people, and are
passionate about helping our customers get the right
car. We know that our customers care equally about
what they drive and the price they pay, and that they
can get a car however they like – in store or online.
Our customers receive Feefo Platinum award winning
customer service wherever and however they choose
to buy their car.
Motorpoint Quality Standard sits at the core of our
operations, ensuring we deliver the highest levels of
quality of nearly new vehicles and customer service
along the entire customer journey. Our cars are
rigorously checked from engine to exhaust by our
experts, and sold under warranty.
84
Net Promoter Score
O U R P E O P L E
Our people are at the heart of our business, not least
in ensuring the quality of the customer experience;
this is why we are determined to continually focus on
our team engagement.
Find out more on pages 40 - 47
1 0 Motorpoint Group PLC | Annual Report and Accounts 2023
1 0
Motorpoint Group PLC | Annual Report and Accounts 2023
11
GovernanceStrategic ReportFinancial Statements O U R C U S T O M E R S ’
J O U R N E Y
We make car
buying easy by
being online
and in store
E A S Y T O
F I N D
I N
S T O R E
Store locations
Customer agents
within stores
O N L I N E
Website
enhancements to
help find the right
car – by lifestyle,
by budget
B E N E F I T S
Extensive
choice
Great value –
Motorpoint
Price
Promise
1 2
Motorpoint Group PLC | Annual Report and Accounts 2023
We have invested in creating a
deeply embedded digital and retail
omnichannel customer journey
that gives the car buyer the choice
of how to buy their next car in a
way that fits their lifestyle.
E A S Y T O
E A S Y T O B U Y /
V I E W
S E L L Y O U R C A R
E A S Y T O
C O L L E C T
E A S Y T O
C O N T A C T
Diverse and vast
range of stock to
browse and test
drive
Enthusiastic team
to help customer
through the sales
process
Quality, service
and fulfilment
support both
online and
in store
Same day driveaway
Home delivery
Reserve and collect
Buy online, collect in
store
Handover done in
less than 30 mins
360° virtual tour
of the vehicle and
gallery of images
with technical
specifications
Digital end to end journey
Finance completed in
privacy of own home
and with access to all
information
Competitive
part exchange
prices
Flexible
finance
options
Car buying
service
available
Payment made
within minutes
of deal being
agreed
Award
winning
customer
service
7 day
exchange
guarantee
High
quality and
standards
guaranteed
Motorpoint Group PLC | Annual Report and Accounts 2023
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GovernanceStrategic ReportFinancial Statements M A R K E T O V E R V I E W
The Group has made good progress on its strategic
objectives, delivering record revenues, whilst executing
on its investment strategy for growth, despite
difficult macroeconomic conditions which have
impacted profitability.
Significant improvement of our market share in nearly
new vehicles despite a fall in used car sales.
Revenues
£1,440.2m
2023
2022
£1,440.2M
£1,322.3M
Market share (0–4 year old vehicles)
3.5%
2023
2022
3.1%
3.5%
Size of market
(0–4 year old vehicles; source: SMMT)
1.55m
2023
2022
1.55M
1.87M
Car market
Motorpoint’s core proposition is
the sale of nearly new cars and
commercial vans which are up to
four years old and have covered
fewer than 30,000 miles. We monitor
available market statistics, notably
from the SMMT (Society of Motor
Manufacturers and Traders), which
give us transaction volumes for
target market cars but do not include
recorded mileage. We therefore
use the transaction volumes as a
proxy for our available market. The
used car market continued to be
influenced by the knock-on effect of
the chip shortages limiting new car
production. The exceptional inflation
experienced in the previous year
subsided in FY23, and we generally
saw a return to more normal levels of
slight month on month deflation. The
exception related to Electric Vehicles,
where we experienced accelerated
depreciation in the second half of
FY23, which impacted our margins.
Towards the end of FY23, our new
car supply started to improve. This
provided the opportunity to source
more vehicles directly, and this trend
is expected to continue in FY24.
17%
shrinkage in 0–4 year old
market compared to FY22
(source: SMMT)
14 Motorpoint Group PLC | Annual Report and Accounts 2023
Consumer confidence
During FY23 consumers faced rising
inflation and interest rates which
resulted in increased uncertainty,
and the resultant downturn inevitably
impacted financial performance.
Despite this slowdown in demand,
coupled with supply challenges for
most of FY23, we still managed to
significantly grow our share of the
market. Based on our customer data,
the use of digital services is becoming
universal amongst car buyers. Some
degree of physical connection
continues to be preferred by most
customers to provide reassurance
and trust in their purchase. In other
words, UK consumers prefer to buy
used cars and ancillary services on
a cross channel basis, using digital
channels and physical touchpoints
interchangeably on their purchase
journey. Looking forward, we expect
the supply pressures to further ease,
although it is more difficult to predict
the economic conditions. The war in
the Ukraine unfortunately continues,
although we may expect softening
in interest rates and inflation as the
year progresses. Whilst this may be
welcome, there is likely to be continued
pressure on discretionary spending
power and consumer sentiment.
However, Motorpoint, through its price
leadership, will continue to offer the
best value to customers and has a
strong track record of demonstrating
resilience in a downturn.
“ The best customer
service ever”
Trustpilot, Motorpoint website,
April 2023
23.8%
cars retailed purchased
directly from consumers
1,494
Big increase in the sale
of Electric Vehicles (2022: 631)
89.7k
vehicles sold, inc 32.4k via
Auction4Cars.com platform
Motorpoint Group PLC | Annual Report and Accounts 2023
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GovernanceStrategic ReportFinancial Statements H O W W E
D E L I V E R VA L U E
Agility,
culture,
efficiency
Our strength lies in our ability
to be agile and responsive –
in our people and our culture,
and in our constant focus
on improving operational
efficiencies across our digital
platforms and retail network.
Investment in technology
is delivering operational
efficiency.
Key strengths and resources
New stores and growth opportunity
We can open wherever we see a market
opportunity; speed and scale are in our control.
Existing dealerships tend to be cheaper to fit out.
Breadth of stock
On average 40 brands are available in store
or online, spanning all the leading makes and
models, sourced from multiple channels. All
stock is available nationally.
Retail product offer
Our retail proposition continues to be 100%
on nearly new cars and commercial vans; our
product offering is supported by providing
finance packages to our customers through our
finance partners as well as offering warranty,
insurance and paint protection products.
Operational control
We have no external restrictions. Proprietary
IT systems can be built; we have bespoke
values led development and team engagement
programmes; marketing can be via any channel
or into any geography; our modest showroom fit
out costs support Motorpoint’s value proposition.
Financing
We are free to negotiate for the most competitive
terms on the external market.
Car buying
Our service allows us to purchase cars direct
from consumers. Depending on their age, cars
can either be sold through Motorpoint (thus
providing a further supply chain route), or via the
Auction4Cars.com platform.
Underpinned by our values
Our operating model is focused on putting our
employees first. This means empowering our
team and giving them the skills and confidence to
champion the customer. We achieve this through
living our core values and team commitments.
1 6 Motorpoint Group PLC | Annual Report and Accounts 2023
How we deliver for our customers
Retail stores
Our retail stores offer sales, light vehicle
preparation and a large display area.
All stores offer refreshment and lounge
facilities to enhance our customers’
experience and comfort. Locations are
generally positioned for ease of access
and located within close proximity of a
large population. Our digital contactless
purchase process allows customers the
option to complete their vehicle purchase
in store or online, visit our store to collect
their vehicle, and drive away in under
30 minutes. Wherever possible,
we are looking to automation to
speed up the customer journey.
ETAIL S T O
R
Home delivery
Our customers can choose a vehicle,
arrange finance, purchase and have it
delivered to them, without having to
leave their home.
S
E
R
H
O
M
E
D
E
L
I
V
E
R
Y
E
R
Retail websites
We constantly innovate
to deliver outstanding
customer service and we have
a nationwide Home Delivery
service with a 14 day money back
guarantee to all online customers. Our
website allows us to maintain a convenient
and trusted user experience as customer
preferences evolve.
E
B
I
L
T
W
A
SITES
Our upgraded imaging and vehicle specification
details provide customers with substantial information
on the vehicle they are researching or buying,
enhancing the conversion to sale on our website.
MyMotorpoint, our customer portal, allows customers
to complete all documentation requirements online,
enabling Home Delivery and faster handovers in store.
This is proving popular with our customers.
S
GE
X C H AN
Part exchanges
Motorpoint generally sells
vehicles with less than 30,000
miles, and less than four
years old, to retail customers.
Vehicles in excess of this mileage
and age purchased from a customer
as part exchange are sold through
our wholesale E-commerce platform
Auction4Cars.com.
T E
R
A
P
This platform provides invaluable live
data on the latest valuation of vehicles
sold through Auction4Cars.com and
allows us to offer the best price to our
customers for their part exchange.
Proud
We are proud of what we do, how we do it and
the people who make it happen. We stand out
from the crowd and are proud to work as part
of Team Motorpoint.
Happy
We enjoy what we do and we show it – a
smile is contagious and our teams wear them
naturally with pride. A happy team makes for
a better working environment which in turn
translates to a great customer experience.
Supportive
We have a one team ethos and understand
that together we achieve more. We are a
united team focused on a common goal and
vision and will always help our customers and
colleagues alike #drivingdreams®.
Honest
This applies to our teams, investors and
customers. Courage and honesty are the
vehicles for positive change and Team
Motorpoint has embraced this.
Motorpoint Group PLC | Annual Report and Accounts 2023
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Strategic ReportFinancial StatementsGovernance
C H A I R ’ S S TAT E M E N T
Motorpoint is focused on
growth and transformational
improvement
I N T R O D U C T I O N
I have been with Motorpoint for 17
months and am impressed by what
the Group has achieved against a
challenging macroeconomic and
industry backdrop. To have delivered
record revenues of £1,440.2m and
increased market share to 3.5% in
its target market of 0–4 year old
vehicles is to be commended. The
company faced rising financing
costs, constrained stock availability
and pricing shocks to Electric
Vehicle inventory, but nevertheless
was able to continue to make a
number of important strategic
investments. Although greater
yearly profitability was expected
early in the year, our stated goal has
been to invest in growth and new
strategic capabilities to the extent
possible while remaining profitable.
Although the company eventually
made a small loss in a difficult
trading environment, I am pleased
with the progress made.
I have highlighted below my thoughts
on the current landscape of the UK’s
used car market, strengths of the
Motorpoint model, and why I believe
there is an opportunity for Motorpoint
to continue gaining market share
and, as the UK economy normalises,
substantially grow profit.
Market context
The UK used car market is highly
fragmented among branded new
car franchises, local and regional
used car dealers, and emerging
online companies. The industry’s car
sales practices are fairly entrenched,
organised around a physical store
model with high costs, and generally
not favoured or well trusted by
consumers compared to other
retail shopping experiences. The
supply side of the used car market
is similarly unchanged for most
used car dealers. It has traditionally
been limited to part exchanges,
purchases off lease, bulk purchases
from OEM manufacturers and
rental fleets, and purchases from
a wholesale trade marketplace.
Both sides of the market, sales and
supply, have recently experienced
intensified competition. New car
franchises have shifted more
attention to used cars to cover for
lower new car production, new
online-only sales models have
emerged, and constrained used
car supply has caused all players
to compete more aggressively for
stock from all sources.
The growth of the online channel
and use of contemporary
technology presents an opportunity,
at least in theory, to disintermediate
the used car market by selling direct
to consumers through a lower cost,
higher service model, by buying
direct from consumers or via new
online marketplaces, and by building
brand leadership and market share
through aggressive marketing.
Used car competitors can respond to
this opportunity in a range of ways,
from building a basic-catalogue type
website to spending massive money
on technology and marketing on
“ As Motorpoint continues to improve its omnichannel
customer experiences and data-driven processes,
and to invest in more effective marketing and store
expansion, its brand awareness, market share, sales
and profits should rise, creating a substantially
bigger and more profitable business.”
John Walden
Chair
1 8 Motorpoint Group PLC | Annual Report and Accounts 2023
Value creation
Motorpoint is today one of the best
operators in the UK’s used car market,
as measured by its strong margin
per car sold while simultaneously
providing a lowest price promise,
and industry leading NPS. With over
25 years of experience, it has proven
its superior pricing models and
market-leading efficiency in inventory
management, vehicle re-conditioning,
logistics and store operations.
Motorpoint is using technology to
further reduce costs across business
processes and operations, including
to reflect the cost saving opportunities
in stores and call centres from
increased consumer take-up of
Motorpoint’s improved digital services.
In the near term we expect the market
for used cars in the UK to continue
to be difficult due to, among other
things, softened consumer demand,
limited stock availability and high
financing costs. However, we believe
Motorpoint will emerge from the
current depressed consumer market
a more efficient and competitive
business having made progress
on multiple key strategic initiatives
in technology, marketing, and its
digital and physical channels. Over
the long term we will make further
investments, offset to a degree by
efficiencies across the business. As
Motorpoint continues to improve its
omnichannel customer experiences
and data-driven processes, and to
invest in more effective marketing and
store expansion, its brand awareness,
market share, sales and profits
should rise, creating a substantially
bigger and more profitable business.
I would like to thank all of my
colleagues at Motorpoint, at our
Head Office and across the UK
network, for their continued hard
work and commitment. Whilst the
current macroeconomic environment
and car industry pose challenges
for our company and UK consumers
face significant uncertainty, I remain
excited by the opportunity in front of
us and confident that Motorpoint is
well positioned to deliver significant
shareholder value in the long term.
John Walden
Chair
14 June 2023
an online only model in hopes that
scale can eventually cover central
costs and show profit. We believe
that Motorpoint and its strategic
approach are uniquely positioned
to become a leader in this changing
used car market and thereby grow
revenues and profit substantially.
Customer proposition
Based on our customer data, the
use of digital services is becoming
universal amongst car buyers and
sellers. However, some degree of
physical connection continues to
be preferred by most customers
to provide reassurance and trust
in the transaction. In other words,
UK consumers prefer to buy used
cars and ancillary services on a
cross-channel basis, using digital
channels and physical touchpoints
interchangeably in their purchase
journey. Similarly, consumers
prefer a cross-channel approach to
selling their cars, as online sources
provide pricing and other data while
a physical connection is required
to validate and collect the vehicle.
Motorpoint, as an omnichannel
retailer, is perfectly positioned to
serve this need and is developing
integrated consumer journeys to
provide a digital channel, store sales
and service channel, and home
delivery and collection options,
underpinned by sophisticated data,
that allows customers to learn, shop
and build confidence and trust in
their purchase or sale and helps
Motorpoint know just what degree
of assistance is needed at each
stage of the journey.
This innovative customer experience,
coupled with Motorpoint’s price
and service offer, should provide a
leading proposition in the market.
Growth
Motorpoint has seen its market
share grow with increased brand
awareness. Importantly, we also
see this awareness grow where
we have a local store presence.
Where Motorpoint has stores and
has deployed targeted marketing
programmes, its mature market
share of 0–4 year old vehicles is
8.9% compared to 3.5% nationally.
The profitability profile of a
Motorpoint store is also favourable.
Historically, in a normalised
economic environment a new
store turns profitable in its second
year and at maturity can generate
profit in excess of £2m-£3m per
annum. With ongoing improvements
to its digital and store customer
experiences, and expanded and
improved marketing, we believe that
Motorpoint’s mature and national
market shares can be higher and its
timeline to maturity accelerated.
Motorpoint has stores in 20 market
regions and believes up to 25
markets are targets for future stores,
leaving ample growth opportunity.
With national brand awareness, a
strong digital offer and an expanded
network of service points, we would
expect market share outside of store
catchments to grow as well.
Motorpoint Group PLC | Annual Report and Accounts 2023
1 9
GovernanceStrategic ReportFinancial Statements C H I E F E X E C U T I V E ’ S S TAT E M E N T
There is a significant
opportunity for Motorpoint
to become a larger, highly
profitable market leader
Good progress against strategic objectives, with
strong advancements in technology, store expansion
and resultant market share growth.
I N T R O D U C T I O N
Overview
During FY23, we continued to
execute on our investment
strategy to offer our customers a
truly holistic experience when it
comes to purchasing a used car,
with guaranteed access
to our outstanding price
leadership proposition.
I am pleased that we achieved
record revenue of £1,440.2m, up
8.9% on FY22, of which £660.5m
was derived from E-commerce sales
(FY22: £624.9m). This was helped
by vehicle mix and inflation, but we
also achieved meaningful market
share gains in a smaller market due
to investment in new geographical
areas, digital and technology
capability, and price leadership.
As previously highlighted,
we experienced a number
of headwinds in FY23, which
impacted profitability.
Rapidly rising inflation, consumer
uncertainty and worldwide vehicle
supply chain challenges are
significantly affecting the used car
market. For example, the market for
our 0–4 year old sector has fallen
from a pre Covid high of 2.45m sales
per annum to 1.55m.
In addition, higher interest rates
also resulted in lower finance
commissions where we chose not
to pass the full cost increases onto
customers, and our interest costs of
£7.1m more than doubled from FY22.
“ We are the UK’s leading
omnichannel used vehicle retailer,
investing for significant, profitable
long term growth.”
Mark Carpenter
Chief Executive Officer
2 0 Motorpoint Group PLC | Annual Report and Accounts 2023
I N T R O D U C T I O N
84
Net Promoter Score
In a year we have
stocked over
555 models
8.9%
market share within
30-minute drive time
of a store
(0–4 year old car market)
Margins were also eroded by the
well-documented fall in Electric
Vehicle prices in the latter part of
FY23 with as much as a 30% reduction
in stock values over a four month
period. These factors influenced the
reduction in profitability, resulting
in a loss before taxation of £0.3m,
down from a profit of £21.5m in
FY22. Despite these headwinds we
consciously continued to execute our
planned investment in strategic
objectives, which cost an incremental
£6.1m in FY23. We have worked hard
during the year to manage non-
strategic costs, and headcount at year
end had dropped to 794 (FY22: 928),
even with the opening of new stores.
Our cash position has improved
significantly since the end of FY22,
despite the lower profitability. Net
cash, excluding lease liabilities,
at year end was £5.6m (as set
out on page 160), compared to
net debt of £(21.2)m in FY22. This
was largely due to the use of the
stocking facilities, which allowed full
repayment of the £29.0m revolving
credit facility during the first few
months of FY23.
We believe that there is a significant
opportunity for Motorpoint to
become a larger, highly profitable
market leader in a changing and
fragmented market.
This will involve investments over
time in data-driven technology,
digital and store customer
experiences, and growth including
marketing and store expansion.
In the shorter term, the business
is expected to benefit from the
increase in new car registrations,
therefore expanding supply.
Strategy update
In June 2021, we announced our
objectives to significantly increase
our rate of growth, with the aim of at
least doubling FY20 revenue to over
£2bn in the medium term by:
• Growing our E-commerce revenue
to over £1bn by substantially
increasing investment in
marketing, technology and data.
• Opening 12 new sales and
collection stores to service revenue
growth, increasing investment
in the customer proposition, and
expanding our supply channels.
• Leveraging our E-commerce
platform Auction4Cars.com
to accommodate new supply
channels and to launch our
marketplace offering.
Increasing operational efficiency
through further automation
and technology investment
as customers migrate to
E-commerce channels.
•
As a result of our strong
performance in key strategic
areas, the Group has made good
progress on these targets. Since
the objectives were announced,
the Group has benefitted from
high vehicle inflation and car mix,
increasing the average selling price
per vehicle; however, challenges in
availability and then weaker demand
in the used car market has materially
hindered unit sales growth.
In the year, our share of the 0–4
year old market increased to 3.5%
(FY22: 3.1%, and from 2.4% when
the strategy was launched), whilst
market share within 30 minute
drive time of a store increased to
8.9% (FY22: 7.7%). There is clear
correlation between market share
and unprompted brand awareness.
Two more new stores opened
successfully in FY23, namely
Edinburgh and Coventry. Both are
in strategically significant regions,
and we are pleased with their
performance. Ipswich, our 20th
store, opened in May of this year.
While difficult trading conditions
remain, we will pause our new
store rollout programme, as we
concentrate on investment that
offers the best near term return.
During FY23, we have made rapid
progress enhancing our digital
capability. We are seeing the
benefits of hiring an experienced
Chief Digital Officer, who has built
up an in-house digital team, with
a significant increase in digital
sales leads. We also opened our
new state-of-the-art Tech Hub in
Manchester to help us attract the
best talent in the digital industry as
we enhance our online presence.
Our website has been subject to
much investment, and now includes
a new, lifestyle inspiring landing
page, improved search workings,
imagery, product information, drop
down functionality and a more
premium look and feel.
In addition, work has been
progressing quickly on integrating
marketing platforms, SEO
enhancements, targeted brand
awareness and communication,
Motorpoint Group PLC | Annual Report and Accounts 2023
2 1
GovernanceStrategic ReportFinancial Statements C H I E F E X E C U T I V E ’ S S TAT E M E N T C O N T I N U E D
and eCRM capability. These
enhancements are all designed to
improve the customer journey and
increase efficiency.
We continually enhance the way
in which we use data to make
informed decisions, particularly with
regard to how we price vehicles.
Our capability has been bolstered
with the introduction of Tom Tang
who joined Motorpoint as Chief
Technology Officer in March. Tom
has over 20 years of experience
in technology leadership with his
recent roles as CIO, Alliant Energy,
Sainsbury’s and Argos. Tom is
an advocate of the benefits of AI
capabilities which benefit both the
customer and employee. A key focus
for the business has been the use of
automation to improve efficiency,
whether it be making things easier
for customers in store and on the
website or automating back office
functions. Automation progress will
further accelerate as Tom settles
into the business.
The investment that we undertook
in FY23 was to build a market leader.
This included future-proofing
the business, providing us with
enhanced technology capabilities to
improve our customer proposition
and automation to drive efficiencies,
both of which help us to withstand
tougher market conditions. The
Group is now better positioned
for the future, and we are in a
position to scale back on our
investment spend, utilising these
new capabilities, and focus only
on pursuing the most impactful
strategic investments.
Customers
As we innovate our omnichannel
customer experiences, our highly
engaged team continued to deliver
our market leading proposition
of Choice, Value, Service and
Quality to our loyal customers with
an unerring focus on customer
satisfaction. Our NPS for sold
vehicles remains at a record high 84.
and in store customer journey. The
focus currently is on improving
customer experience, and how we
can serve them even better, linking
their in store experience to online
research. How customers shop
with us is becoming increasingly
interchangeable between channels.
Our team
Our operating model of how our
employees and stakeholders
interact, the Motorpoint Virtuous
Circle, combined with our Values
of Proud, Happy, Honest and
Supportive continue to provide a
robust framework for explaining
how we get things done and what
factors to consider when decisions
are required.
During the year, we introduced
new and improved tools to help us
attract and retain the best talent
including a new careers website
and e-applicant tracking system,
an onboarding tool and a powerful
internal communication platform.
We are already seeing the benefits
of attracting top talent and we were
pleased to receive an increased
number of applicants for positions
at our new store in Ipswich.
We believe that the engagement
of our team is directly correlated
to our customer satisfaction, and
we sponsor multiple initiatives to
enhance their experience with
Motorpoint. Our ‘One Big Dream’
initiative has been a huge success,
with our people using two paid
hours per month for their own
fulfilment. We are proud to have
again been selected in the UK’s 100
Best Companies to Work For, our
ninth consecutive selection.
At my senior team level, with the
introduction of Kal Singh, Chief
Operating Officer, in December
and more recently, Tom Tang,
Chief Technology Officer, in March,
I believe that all the building
blocks are now in place to further
accelerate our strategic objectives.
During FY23, we introduced Project
One, which is Group wide, and looks
at how Motorpoint will operate in the
future to seamlessly join our online
Environmental, Social and
Governance (‘ESG’)
The Group has made significant
progress on its ESG strategy. The
2 2 Motorpoint Group PLC | Annual Report and Accounts 2023
ESG Committee is fully operational
and has been instrumental in setting
out appropriate ESG targets. We
want to be viewed as the most
environmentally friendly used
car retailer.
During FY23 we have had a
specific focus on ‘GHG emissions
and reductions’, ‘recycling,
waste recovery and reductions’,
and ‘energy use, conservation
and reductions’. We delivered a
7.3% reduction in energy usage
per square foot compared to
FY22, and waste to landfill was
practically zero (0.2%). Also, water
consumption fell by 15.4% in the
year. Working towards these targets
has seen us make good progress
in data availability, visibility, and
awareness across the business.
Throughout FY23 we have remained
committed to energy management,
championing this through
internal communication channels
which promote and incentivise
energy efficiency.
From an Electric Vehicle (EV)
standpoint, FY23 saw us make
substantial progress upgrading our
estate to support this expanding part
of the market. We sold 137% more
EVs this year compared to FY22.
Outlook
As already mentioned, rising
inflation and interest rates,
consumer uncertainty and vehicle
supply challenges significantly
affected the used car market and
impacted our financial performance
in FY23. However, Motorpoint
has a strong track record of
demonstrating financial resilience in
a downturn, with market share gains
and an ability to effectively manage
cash resources. This ability will allow
the Group to continue investing
prudently in our strategic objectives.
The Group expects to emerge in
a normalised market as a leaner
and more valuable business ready
to seize a significant opportunity.
Our short term focus is on cash
conservation by increasing margin
and lowering our cost base, which
will improve profitability.
Mark Carpenter
Chief Executive Officer
14 June 2023
K E Y P E R F O R M A N C E I N D I C AT O R S
It’s important that
we measure our
performance
N O N - F I N A N C I A L K P I S
Estimated sales from
digital leads4, 8
21.1k
2023
2022
21.1K
19.3K
F I N A N C I A L K P I S 1
Revenues (£m)2
£1,440.2m
Gross profit (£m)2
£85.7m
Market share (0–4 year old market)4
3.5%
2023
2022
£1,440.2M
£1,322.3M
2021
£721.4M
2020
2019
£1,018.0M
£1,058.7M
2023
2022
2021
2020
2019
£85.7M
£106.3M
£62.5M
£78.9M
£79.9M
2023
2022
2021
3.5%
3.1%
2.4%
Gross profit per retail unit
(Loss) / Profit before tax (£m)2
Net Promoter Score3
£1,300
£(0.3)m
2023
2022
2021
2020
2019
£1,300
2023 £(0.3)M
£1,446
2022
£21.5M
£1,254
2021
£9.7M
£1,152
£1,150
2020
2019
£18.8M
£22.2M
84
2023
2022
2021
2020
2019
84
84
83
81
78
Net Cash/(Debt) (£m)2, 5
ROCE2, 7
Number of stores at year end6
£5.6m
17.3%
2023 £5.6M
2023
17.3%
£(21.2)M
2022
2021 6.0M
2020
£0.8M
2022
2021
2020
2019 £13.8M
2019
74.6%
52.7%
96.5%
96.2%
1 Definitions of terms can be found in the
5 Cash less borrowings, excluding lease
Glossary on page 161.
liabilities (as set out on page 160).
2 The KPIs for FY19 have been restated
6 Number of open stores at year end.
following the adoption of IFRS 16 in FY20.
3 The 2021 data is based on H2 of that
year, which is considered to be more
representative due to lockdowns during
the COVID-19 pandemic.
4 Data not tracked on a like by like basis for
the full five year period.
7 Operating profit relative to the average of
opening and closing net assets (as set out
on page 160).
8 Based on number of reservations, test
drives, and enquiries originating from
digital channels.
19
2023
2022
2021
2020
2019
19
17
14
13
12
Two new stores opened in FY23 taking
our total stores up to 19, and a 20th
store opened in May 2023, improving
national coverage.
Motorpoint Group PLC | Annual Report and Accounts 2023
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GovernanceStrategic ReportFinancial Statements O U R S T R AT E G Y
The Car
Buyer’s
Champion
Our strategy remains to grow
revenue to more than £2bn
in the medium term. This will
be delivered by continued
focus on our customer,
ensuring we meet their
needs and demands online
while delivering the highest
levels of service, quality and
support through our growing
nationwide retail network.
“ The strategy has proven successful
despite challenging headwinds.
As a consequence of the fall in
new car production, our market
has shrunk, although we continue
to take a greater share of our
available market.”
Mark Carpenter
Chief Executive Officer
2 4
Motorpoint Group PLC | Annual Report and Accounts 2023
Good progress was made in the year against the four pillars of our strategy.
Rapidly upscaling our
E-commerce capability
• Experienced CTO joined in
March 2023
• New tech roles recruited,
with focus on developers and
the cloud
• Future roadmap for our
tech stack
• Data science solutions
delivered enhancing marketing
performance, and supply and
demand insights
• Digital journey improvements
•
including the development of a
full end to end purchase journey
on our website
Improved email engagement
metrics, such as higher
click through and lower
unsubscribe rates
• More frequent and targeted
email communication
• New tech hub launched in
Manchester store – help attract
best talent
Expand wholesale and
E-commerce channels
• Further investment in
infrastructure, technology
and brand marketing
• Car buying service is a fully
automated digital first operation
• Website enhancements to
improve customer journey
• Auction4Cars.com operates
as an automated digitally led
marketplace
• Low purchase fees for dealers
Increase customer
acquisition and retention
• Appointment of a brand
new position, Customer
Excellence Director
• Two new stores in FY23 and
a further store in May 2023
• Share of voice growth and
improved brand awareness
• Price leadership maintained
• Growth in MyMotorpoint
•
accounts
Increased product choice
for customers
• Focus on social media
• Project One launched to further
improve customer experience at
all touchpoints
• New brand advertising campaign
launched in December 2022
Operational efficiency
through technology and
innovation
• Further development
of QC app to measure
preparation efficiency
• Prep time improvement from
9.4 days to 8.3 days (0–4
year old cars)
• Automated payments solution
launched
• New telephony collaboration
platform launched
• Enhancements to encourage
customers to complete
journey online, freeing up
time for employees
• Headcount fall supported
by automation and customer
self-serve
Motorpoint Group PLC | Annual Report and Accounts 2023
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S T R A T E G Y P E R F O R M A N C E F O R 2 0 2 3
Upscaling our
E-commerce capability
Investment into our technology, data,
E-commerce capability will accelerate
future growth
Motorpoint’s visibility in Google’s
search listings is up over 176% year
on year, capitalising on investment
in the website, content and
marketing teams.
Link to strategy
Rapidly
upscaling our
E-commerce
capability
Operational
efficiency through
technology and
innovation
FY23 highlights
•
Impact of recruitment of experienced Chief
Digital Officer and new Chief Technology
Officer joined in March 2023
• New technology capability building; focus on
product development, engineering and cloud
• Data science increasingly driving business
•
decisions
Insight driven paid media strategy based on
key data sources, to drive cost efficiencies and
deliver growth
• More frequent and targeted email
communications and digital activity
• Digital & Tech Hub launched in Manchester
store – will support and attract the best talent
in a range of digital roles
• Recruitment of a new Digital Marketing
Director and a team of digital marketing
experts covering a range of channels including
paid search, Search Engine Optimisation
(‘SEO’), email, digital PR and social media
• Build of an in-house content production team,
covering everything including content writers,
editors and video producers
High performance digital team
now embedded
Digital Marketing
•
In-housing of team drives advanced thinking
and techniques
• Significant reduction in operating costs compared
to outside agencies
Product
• Opportunities to increase sales, improve customer
excellence and generate business efficiencies
• Reduction in development time through product
owners partnering with engineering teams
• Development of new site features and functionality to
create seamless online and offline Customer Experience
Content and Design
• Content team recruited to drive SEO through written
•
and video content
In-house User Experience and User Interface teams
recruited to test and enhance Customer Experience
21.1k
Estimated sales
from digital leads
2022: 19.3k
+12.5%
Mobile traffic
Year on year Q4
growth
2 6 Motorpoint Group PLC | Annual Report and Accounts 2023
S T R A T E G Y P E R F O R M A N C E F O R 2 0 2 3
Growing our
market share
Creating a true omnichannel
experience for customers
Market share growth as customers
repeat purchase at a location and
brand awareness increases in
new regions.
Link to strategy
Increase
customer
acquisition and
retention
FY23 highlights
• New brand proposition launched in December
2022 focusing on our product quality and
unbeatable prices – There’s no car like a
Motorpoint car
• Multichannel awareness driving campaign
launched on Christmas Day
• Six new market area locations since October
2021 (at time of publication of report)
• New branches accelerate market share in
new markets
• Price leadership linked to significant market
•
outperformance
Increased product choice for customer
(SKU unique mix over 80%)
• EVs sold up 137% compared to FY22
8.9%
market share
(within 30 mins)
• Customer Board introduced – to enhance
customer experience and KPIs
• Project underway to establish how Motorpoint
will operate in a future omnichannel world – best
service, best customer experience, seamless
website and branch experience; remuneration
packages modified to drive market share further
3.5%
Market share
(0–4 year old car market)
2022: 3.1%
20
Stores nationwide
(at time of publication of this report)
Motorpoint Group PLC | Annual Report and Accounts 2023
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S T R A T E G Y P E R F O R M A N C E F O R 2 0 2 3
Operational excellence
Operational efficiency through
technology and innovation
Link to strategy
Operational
efficiency through
technology
and innovation
FY23 highlights
• Efficiency improvements in store, preparation
and back office functions
• Automation supporting headcount reduction,
despite increases in digital capability and
new stores
• Ongoing review of remaining manual processes
to establish what can be automated, along with
customer self-serve
• Further development of QC app helped time
taken to prepare a car by 12% from previous year
• Store LFL headcount reduction following
automation and customer self-serve
• Company-wide procurement review launched
providing cost saving benefits
• As well as website enhancement, projects
include Salesforce CRM, IT hardware refresh,
networks upgrades and new Collaboration
platform to enhance customer service
12%
reduction in preparation time on
0–4 year old cars in FY23
2 8 Motorpoint Group PLC | Annual Report and Accounts 2023
S E C T I O N 1 7 2 S TAT E M E N T
Our stakeholders at
the heart of our model
The Board has a duty to promote the long term,
sustainable success of the Company and of the wider
Group. The baseline duty is set out in section 172 of the
Companies Act 2006, but in reality, it is broader and
the Board considers a wide range of statutory and
other factors within its decision making process.
Board decision making will always encompass:
•
the likely consequences of any decision in the long
term and the risks to the Group and its stakeholders;
the interests and wellbeing of our people and the
communities where we are present;
the impact of our vehicles and business on the
environment and the need to ‘decarbonise’;
the Group’s relationships with its customers and
suppliers; and
the importance of our reputation for integrity and
high standards of business conduct.
•
•
•
•
Motorpoint believes that a key mechanism in ensuring
that it makes good long term and sustainable decisions
is open, two way dialogue with all our key stakeholders.
We believe that understanding the perspective and
needs of our stakeholders is vital to the Group’s success.
Good governance, our business ethics and integrity are
essential to continue to be an attractive company for our
investors, employer for our employees, partner for our
suppliers and retailer for our customers.
We have a code of conduct in place for all employees,
which sets out our expectations for ethical behaviour
and responsible decision-making. We also have a
dedicated customer care team that is focused on
ensuring that our customers are satisfied with the
service we provide.
In addition to this, we have also established several
community initiatives to support the local communities
in which we operate.
We recognise that our success as a business is closely
linked to the wellbeing of the communities in which we
operate, and we are committed to being a responsible,
sustainable member of our local communities.
We regularly review our policies and procedures to
ensure that they are in line with our obligations under
Section 172 and that they continue to effectively take
into account the needs of all our stakeholders.
This Section 172 statement signposts in more detail
some of the key ways in which we have engaged with
stakeholders across the year ended 31 March 2023 and
built confidence in the sustainability of their relationship
with the Group. It should be read in conjunction with:
•
•
•
•
•
•
the Chair’s statement on pages 18 and 19
the Chief Executive’s statement on pages 20 to 23
the ESG report on pages 33 to 49
the Chief Financial Officer’s review on pages 58 to 61
the Risk landscape from pages 62 to 72
the Governance and related reports from pages 76 to
page 114
Motorpoint Group PLC | Annual Report and Accounts 2023
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GovernanceStrategic ReportFinancial Statements S E C T I O N 1 7 2 S TAT E M E N T C O N T I N U E D
E N G A G I N G W I T H O U R S T A K E H O L D E R S
Engaging and understanding the needs of our key stakeholders has never been more important and is critical to the
Board’s decision making.
Stakeholder
Why we engage
How we engage
Outcomes and how
feedback reaches the Board
Our people
We have an experienced,
diverse and dedicated
workforce which we recognise
as a key asset of our business.
Therefore, it is important
that we continue to develop
the right environment and
Company culture to encourage
and create opportunities for
individuals and teams to realise
their full potential.
• b-Heard annual engagement
survey twice a year, February
and September
• Conducted a DEI survey in
September 2022
• Launched Workplace – our new
internal communications platform
– to improve communication
between teams and across
the business
• b-Heard results and annual people
plan presented to the Board at
January Board meeting
• Have held various SLT sessions on
DEI, with an external DEI specialist,
creating our strategy and SLT
commitments
• Continued to offer health and
wellbeing initiatives with mental,
physical and financial support
• We have set up a designated
• We committed to ensuring we pay
session for all stores and team
members to receive dedicated
monthly time with the Senior
Leadership Team (‘SLT’), driving
more engagement across the
whole business with the SLT
• Training and talent development
programmes that are now a mix of
in person and online
• Monthly SLT/CEO listening groups
called “Ask me Anything” carried
out across the country
• Designated NED (Non Executive
Director) overseeing workforce
engagement and ensuring
updates are provided to the rest
of the Board
• Direct feedback sought on a
regular basis via NPS (84 in FY23),
Feefo (Platinum rate) and Google
reviews
• Monitoring/reporting of sales,
footfall, website traffic and internet
search analyses
• Dedicated customer care team
• Social media and websites
• Project launched to improve all
aspects of customer journey
• Direct contact in stores
at least the Real Living Wage
• People reports at scheduled Board
meetings
• Annual pay review and reports to
the Remuneration Committee who
approved an additional “Cost of
Living” pay review in January 2023
• We’ve invested in salary levels in key
strategic areas of the business and
raised the Motorpoint living wage in
line with the national living wage
pages 40 - 47
• High NPS score
• Strong repeat and referral business
• Use of data to better understand
customer needs, and addressing
these
• Customer research is informing
the development of a vehicle and
customer data profile
• Standard terms of business and
regular supplier meetings
• Contingency planning should there
be a failure in the supply chain
• CEO and Senior Management Team
focus on supply chain challenges
arising from expanding into new
channels and suppliers
• Supplier and distributor
onboarding due diligence
(financial, quality, business
integrity and compliance,
component supply, modern
slavery, etc)
• Ongoing management of supplier
relationships
• Procurement review undertaken to
assess how we improve efficiency
• Engaging with a broad range of
suppliers and regular transition
between channels, with a
similar level of flexibility in
our product offering
• Further strengthening of supply
chain team and processes
Our
customers
Our suppliers
and partners
We’re here to help our
customers buy the car they
want, in the way they want.
Our Choice, Value, Service
and Quality proposition is
reliant on having the right
partnerships to enable us to
deliver for customers. We have
an unerring focus on customer
satisfaction.
It is crucial that we develop
and maintain strong working
relationships with our
suppliers, so we can enhance
the efficiency of our business
and create value, and make
sure we treat suppliers in line
with our values and ethical
standards. We continually
assess our supplier and
partner network, and leverage
both internal and external
expertise to ensure appropriate
relationships and fair
economics.
3 0 Motorpoint Group PLC | Annual Report and Accounts 2023
Stakeholder
Why we engage
How we engage
Our
communities
Our employees care deeply
about our communities. As a
responsible employer, we want
to contribute to the economic
development and sustainability
of our communities.
Our
shareholders
Our
environment
As a company with a premium
listing on the London Stock
Exchange’s Main Market,
we need to communicate
clearly and effectively with
our existing and prospective
shareholders to develop
their understanding of how
the Group’s businesses
are managed to generate
sustainable returns and long
term success.
Through channels such as
climate change and increasing
legislative requirements, the
natural environment affects
many aspects of what we do.
Our own materiality research
also shows that the importance
of environmental concerns
rated highly among our other
stakeholders. As a business,
we need to do what we can to
support our environment to
ensure a sustainable business.
• We have appointed a Sponsorship,
Partnership and Charity Manager
who leads our community activity
and investment initiatives
• We hold a number of partnerships
and subscriptions to support
underrepresented groups e.g.
Automotive 30% Club (Gender),
Stonewall (LGTBQIA+), 55
Redefined (Age)
• Entered into partnerships to create
better gender balance within the
automotive industry
• Commitment to invest in the
successful and sustainable delivery
of careers and education for young
people in our local communities
• All team members are entitled
to paid time off to support
volunteering in the community
• Annual Report
• Consultation with lead investors
and voting advisory organisations
• RNS announcements
• Annual General Meeting
• Investor presentations
• Corporate website
• Roadshows arranged twice a year
to engage with investors
• Investors have the opportunity
to visit stores and meet a range
of employees
• Expanded monitoring of our GHG
emissions and ongoing reduction/
offsetting activities to support our
efforts to reduce the impact of our
emissions
• Continuous monitoring of our
waste and implementation of
improvements to reduce waste
to landfill while increasing our
overall recycling
• Engagement with third parties who
provide expertise
• Ongoing implementation
and exploration of water
saving projects
• Continued consideration into
reduction and offset of our indirect
environmental footprint, such as
products sold
Outcomes and how
feedback reaches the Board
• Awards and recognition
• Sponsorship and volunteering
by employees
• Continuing with our community
focused partnerships which cement
our contribution to the economic
development and sustainability of
these communities
• Raising funds for local charities
close to our stores across the UK
• We support payroll giving to allow
team members to support charities
that are important to them, many of
which will be local
pages 44 - 45
• The Board is provided with regular
feedback on investors’ views and
market developments
• Face to face and virtual meetings
with investors
• We issued regular trading updates
via the RNS facility to update the
market on the financial performance
of the business
• Our websites (www.motorpointplc.com
and www.motorpoint.co.uk) provide a
broad range of information and data
• Monthly reporting on
shareholder trading
• ESG Committee at PLC level to
oversee ESG matters
• Environment is a key pillar of the
ESG Committee
• Sustainability Manager whose role
includes the implementation of
environmental projects
• Formal ESG strategy in place
with three key areas linked to our
environment
• Environmental performance
measures included in annual report
including waste and GHG emissions
pages 34 - 39
Motorpoint Group PLC | Annual Report and Accounts 2023
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H O W W E M A D E O U R K E Y D E C I S I O N S
Below we set out how we considered the interests and needs of stakeholders in two of our key decisions this year.
Decision 1: Cost of living support
Recognising the challenges facing many of our employees due to the cost of living crisis, it was agreed to bring
forward the increase in base salaries to be in line with the Real Living Wage from 1 April 2023 to 1 January 2023.
In bringing forward this pay increase, we considered:
The long term
effect
Our people are a key asset to the success of the business, and supporting them through the
cost of living crisis will help to retain talent in the business.
Affected
stakeholder
groups
Customers and consumers
The retention of our talent leads to a better customer experience, and increases the level of
repeat purchases due to stronger relationships.
Employees
It was recognised that the cost of living crisis was impacting many colleagues in the business,
and the Board considered various ways in how to best support those through this challenging
period. Bringing forward the increase to the Real Living Wage would allow employees to benefit
immediately from an increase to their pay. It was noted that progression opportunities would
also be created to support career development pathways.
Investors
Investors are increasingly focusing on the alignment of executive pay and the wider workforce,
and have shown their support for companies who are introducing cost of living measures.
Decision 2: Continued investment into stores
As part of our strategy to increase market share and boost our omnichannel approach, we took the decision to open
new stores in Edinburgh and Coventry, taking our number of stores nationwide to 19 at year end. A further store in
Ipswich opened in May 2023 bringing our total stores up to 20.
In opening these stores, we considered:
The long term
effect
Growing our market share and increasing our brand awareness will allow us to deliver long term
sustainable and profitable growth.
Affected
stakeholder
groups
Customers and consumers
The locations of our new stores mean that we are able to be closer to customers and increases
the number who live within a 30 minute drive. This helps to give greater choice when deciding
on their next car purchase.
Employees
Our continued investment to deliver on our strategy helps to motivate our employees across the
business, demonstrating the long term view being taken despite the challenging environment
currently being faced.
Investors
The new stores help to accelerate market share in new markets, supporting our growth strategy
as customers purchase at new locations and brand awareness increases. This increase in market
share will lead to longer term sustainable and profitable growth.
Community
Each of our stores engages with a local charity that resonates not only with the staff of that
store, but also with the local community. Opening new stores allows us to further deliver on our
social impact and supports our charity strategy.
3 2 Motorpoint Group PLC | Annual Report and Accounts 2023
E N V I R O N M E N TA L , S O C I A L
A N D G O V E R N A N C E
D r i v i n g
s u s t a i n a b i l i t y :
“ Our commitment
to ESG is a key
consideration in all
decisions we take at
Team Motorpoint”
Mark Carpenter
Chief Executive Officer
Our commitment to sustainability and responsible corporate citizenship has been a focus point in the year with the
aim of Environment, Social and Governance (‘ESG’) to be considered in everything we do. We take this responsibility
very seriously and the Board’s ESG committee oversees all work that we do in this area. In this section, you will find a
comprehensive overview of our ESG initiatives, strategies and achievements over the past year, as well as our plans
for the future. We believe that ESG performance is not only important for the long term success of our business, but
also for the betterment of society and the environment as a whole.
Environment
FY23 Summary: An overview of the targets we set in the year and our progress
towards them alongside key changes and further steps we aim to take in
future years.
Waste management: An overview of our waste management strategies, including
our approach to reducing, reusing and recycling waste. We will also report on our
progress towards our waste reduction targets and provide information on how we
are working to minimise our impact on the environment.
Pages
34 – 35
Page 35
Energy and water usage: We recognise the importance of minimising our use
of natural resources and are committed to reducing our carbon footprint. This
section will provide data on our energy and water usage, as well as an overview of
our initiatives to reduce our consumption and improve our efficiency.
Pages
35 - 36
Emissions data: We understand that the automotive sector is a significant
contributor to greenhouse gas emissions, and we are committed to playing our
part in reducing this impact. In this section, we will provide data on our emissions
from our operations across our Scope 1, 2 and 3 footprint.
Pages
36–39
Social
Governance
Social responsibility: We believe that social responsibility is a key component of
our ESG performance, and we are committed to supporting our team members,
customers and the communities in which we operate. This section will provide
an overview of our social initiatives including our commitment to diversity and
inclusion, community outreach and employee wellbeing.
Governance: We recognise that good governance is essential for building a
sustainable and responsible business. In this section, we will provide an overview
of our governance framework, including our approach to risk management, board
composition and diversity, and ethical business practices as well as our TCFD
aligned disclosures.
Pages
40– 47
Pages
48 – 49
Motorpoint Group PLC | Annual Report and Accounts 2023
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E N V I R O N M E N T
FY23 Summary
During FY23 we had a specific focus
on the following three environmental
factors:
• GHG emissions and reductions
• Recycling, waste recovery
and reductions
• Energy use, conservation
and reductions
This year, we set ambitious targets
focusing on the core aspects of
the environment that are most
important to our stakeholders.
Our goals were to achieve a 10%
reduction in like for like energy
usage vs FY22; and achieve zero
waste to landfill by the end of FY23.
We are pleased with the progress
made against the targets in the year,
full details can be found on page 35.
Working towards these targets
has led us to make great strides
in improving data availability. We
now calculate regular footprints
internally for periodic reporting
and track energy and water usage
monthly on a store by store basis.
During FY23 we adopted our first
internal intensity ratio as a KPI for
monitoring our emissions and driving
sustainable business growth. The
metric is defined as our total Scope
1 & 2 and Business Travel divided by
the total floor area of the business
(tCO2e/floor Area – sq ft). This metric
helps us deliver more accurate like
for like comparisons with previous
years and is disclosed in our SECR
statement later in this section.
While we strive to make
improvements and reduce the
impact of the business on the
environment, we have also ensured
we adhere to the relevant regulatory
standards and compliance
obligations. The third phase of
the Government’s energy saving
opportunities scheme (‘ESOS’) was
successfully undertaken during
FY23 and was complete early in
FY24. In addition, we now have
fully aligned with the Task Force on
Climate related Financial Disclosures
(‘TCFD’). Finally, in line with our
prior year reporting we continue to
adhere to the SECR requirements.
Throughout FY23 we have remained
committed to energy management,
championing this through our
internal communication channels
promoting and incentivising
energy efficiency throughout our
organisation. While FY22 saw some
infrastructure changes such as the
completion of our switch to LED
lighting, FY23 has seen us focus
on data accuracy, reporting and
targeted engagement resulting in
our successful reduction in like for
like energy usage against FY22.
We have also enhanced the
governance in this area with
our Board level ESG Committee
conducting several meetings in the
year, chaired by Adele Cooper, as
well as an internal ESG Committee
continuing to meet regularly,
actioning and delivering governance
over our key ESG priorities.
3 4 Motorpoint Group PLC | Annual Report and Accounts 2023
Despite the volume of new store openings and refurbishments, our continued
partnership with Go-Green ensured that we reduced our waste to landfill
figure to a minimal level. Additionally, we have increased the percentage of
waste recycled to 85.6% indicating our steady progress towards pushing
our waste up the waste hierarchy to minimise its impact on the environment
which in turn has impacted the waste recovered percentage which reflects the
higher proportion of waste recycled in the period.
Total waste figures
Total Waste
Kg Waste / sq ft
Percentage waste recycled
Percentage waste recovered
Percentage waste to landfill
FY23
FY22
1,062.9t
948.2t
1.28
85.6%
14.2%
0.2%
1.24
81.0%
18.1%
0.9%
Energy usage
During FY23, our use of electricity increased by 9.8% owing to our increased
footprint as well as increased consumption due to the increase in EV
charging points in the business. Whilst electricity has been a challenge,
we have seen a steady decline in our reliance on gas supplies with some
examples of gas supply point usage dropping to almost zero in FY23. We
have seen a 10.5% reduction in total gas usage vs FY22, leading overall to
a 0.3% increase in total energy usage, which is a pleasing result given the
overall increase in the portfolio of stores in the business.
This overall reduction equates to a like for like 7.3% reduction in our usage
when compared to the relative square footage of the business year on year,
which represents good progress against our stretch target of 10% like for like
reduction in FY23.
Total electricity and gas usage
Total Electricity kWh
Total Gas kWh
Total Energy
kWh / sq ft
FY23
FY22
% change
5,269,331
4,799,812
3,811,120 4,256,690
9,080,451 9,056,502
10.94
11.80
+9.8%
-10.5%
+0.3%
-7.3%
Also core to our ESG framework
is the need to adapt to customers
as buying trends move to favour
more sustainable products. Whilst
Electric Vehicle (‘EV’) sales had well
documented challenges in FY23
we still expect increased demand
for EVs in the future. This not only
extends to adapting to a rise in the
EV market, but also making sure we
stay ahead of any incentives that
local authorities currently offer, or
may offer in the near future.
FY23 saw us make substantial steps
to upgrading our infrastructure
to support the market for EVs.
We installed charging stations at
our vehicle preparation centres
to alleviate our reliance on the
national EV charging network.
Additionally, our Coventry branch
now has customer EV chargers live,
and we plan to install additional
charging stations at further stores,
including Ipswich.
In addition to our own internal
improvements, we have continued
to work closely with local authorities
to support customers in making
environmentally conscious decisions.
Our Birmingham and Oldbury
stores continue to operate as the
exclusive dealerships for Birmingham
City Council’s scrappage scheme,
offering people working in the clean
air zone the chance to scrap their
old car and receive £2,000 credit
towards a compliant vehicle or a
mobility credit.
Waste management
During FY23, we continued to
prioritise our efforts towards
improving our data capture,
resulting in the ability to complete a
full year on year comparison for the
first time thanks to our continued
partnership with Go-Green.
We experienced an increase in total
waste generated compared to FY22,
due to the expansion of our activities
through new store openings and store
refurbishments conducted in the year.
The store refurbishments also led to
an increase in waste generated per
square foot of the business compared
to FY22, as these activities generate a
higher amount of waste than business
as usual operations.
Motorpoint Group PLC | Annual Report and Accounts 2023
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Energy Saving Opportunities
Scheme (‘ESOS’)
ESOS is a mandatory energy
assessment scheme for
organisations in the UK that meet
the qualification criteria. The
Environment Agency is the UK
scheme administrator, with all ESOS
reports submitted to them directly.
Organisations that qualify for ESOS
must carry out ESOS assessments
every four years. These assessments
are audits of the energy used by
their buildings, industrial processes
and transport to identify cost-
effective energy saving measures.
Following its introduction in 2014, the
scheme is currently in its third phase
of reporting with the compliance
period starting from 31 December
2022. We have already met this
deadline and the report generated
contains a number of potential areas
for us to focus on, assisting with our
journey to net zero.
Water use and reduction
Invoiced water usage is now tracked
monthly, on a per location basis. This
is a significant data improvement over
previous years and will help us on our
path with actionable data to help us
use water more sustainably across
our operations.
During FY23 we achieved a 15.4%
reduction in total water usage
across the business.
One of the factors in achieving
this water reduction has come
from our work with HSG UK who
were appointed in FY22. This year
we have benefitted from reduced
consumption, with the added
benefit of utility bill savings and an
improved washroom experience for
our people and our customers.
During FY23 we surveyed our
Sheffield and Derby stores. The
findings showed that the urinals
operated on a standard fill and
flush system, which usually flush in
15-minute intervals, adding up to
96 flushes per day. We compared
this to HSG’s Ureco system which
reduces flushes to 4 per day,
potentially saving over 300,000
litres of water per year, per cistern.
Furthermore, we discovered that
urinal blockages were not unusual
and could be eradicated by Ureco’s
patented design.
As such, we completed a business
wide rollout during the second
quarter this year and as a result
we have seen our average monthly
water usage drop by from 2,150 m3
in FY22, to 1,820 m3 in FY23.
“ Invoiced water
usage is now tracked
monthly, on a per
location basis. This
is a significant data
improvement over
previous years.”
Emissions data
Greenhouse Gas emissions
and reductions
As highlighted by our ESG materiality
assessment, GHG emissions and
reductions are the highest priority
area of focus for the business.
The increased data accuracy and
reporting with regards to our energy
usage directly corresponds to our
GHG emissions, and as such we have
been tracking our Scope 1 and Scope
2 emissions periodically to enable
reporting at relevant forums such as
the ESG Committee.
In addition to periodic calculations
for our direct emissions, FY23 has
seen us look at the wider Motorpoint
value chain. In line with our TCFD
commitments in FY22, we have
calculated our applicable categories
of Scope 3 emissions.
Streamlined Energy and
Carbon Report (SECR) FY23
This SECR information report has
been compiled in line with the
March 2019 BEIS 'Environmental
Reporting Guidelines: Including
streamlined energy and carbon
reporting guidance', and the EMA
methodology for SECR Reporting
for all measured emissions from
activities which the organisation has
financial control over. The carbon
figures have been calculated using
the BEIS 2022 carbon conversion
factors for all fuels.
3 6 Motorpoint Group PLC | Annual Report and Accounts 2023
“ As highlighted by
our ESG materiality
assessment, GHG
emissions and
reductions are the
highest priority
area of focus for
the business.”
The table below sets out Motorpoint’s emissions in FY23 with prior year comparatives:
Total waste figures
FY23
FY22*
Total energy use covering electricity, gas, other fuels and transport (kWh)
11,892,362
10,862,971
Scope 1 emissions generated through combustion of gas (tCO2e)
Scope 1 emissions generated through use of transportation (tCO2e)
Scope 2 emissions generated through use of purchased electricity (tCO2e)
Scope 3 emissions generated through business travel (tCO2e)
Total Scope 1 & 2, Business Travel (tCO2e)
Intensity ratio – Total Scopes 1 & 2, Business Travel (tCO2e/Floor Area – sq ft)
695.68
594.65
1018.98
157.38
2,466.69
0.00297
779.66
472.09
1019.14
265.10
2,535.99
0.00330
Note: Disclosures above are aligned with the SECR minimum mandatory requirements for quoted companies: Global Scope 1 emissions
from combustion of gas / fuel for transport purposes and Global Scope 2 emissions from purchased energy. Additional disclosure of Scope
3 emissions from business travel or employee owned vehicles is included. Motorpoint plc operates within the UK only.
* Our FY22 utility usage has been restated following reissued invoices by utility providers reflecting increased emissions. For reference the
previously disclosed tCO2e for Scope 1 combustion of gas and Scope 2 emissions generated through the use of purchased electricity
were 618.35 and 959.50 respectively, with the increased intensity ratio and total updated for the increased total emissions.
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Our relative footprint decrease
for combustibles and purchased
energy in Scopes 1 and 2 reflects the
success of our store sustainability
forums, with engagement with store
management to apply reduction
strategies at their respective stores.
Scope 3 emissions
With GHG emissions being a priority
focus under our ESG framework,
a detailed understanding of our
emissions is vital. Up until recently
our focus has been on the emissions
from our direct operations under
Scope 1 and Scope 2 of the GHG
protocol. While these emissions are
more directly under our control,
they offer only a snapshot of total
emissions footprint as opposed to
the emissions of our entire value
chain under Scope 3.
There are a total of 15 categories
defined by the GHG protocol for
Scope 3. Of these 15 categories,
we have established that nine
additional areas not in our SECR
reported emissions above that are
relevant to Motorpoint’s value chain.
Based on these categories, we have
calculated our emissions using the
most appropriate method with the
data available to us, recognising
that reliable data for Scope 3 is a
challenge and we are on a journey
to improving our understanding in
this area. Particular focus was put
towards the calculation of emissions
from products sold, as this category
makes up the majority of our entire
footprint across Scope 1, 2 and 3.
For categories less material to the
business due to their reduced totals
of tCO2e, we have calculated them
using a range of industry accepted
data and estimates.
Our SECR reported emissions for
Scope 1 and 2, Business Travel
decreased 2.7% from 2,540 tCO2e in
FY22 to 2,467 tCO2e in FY23. On an
intensity basis, taking into account
the portfolio size of the business,
our emissions intensity decreased
by 10.0% from FY22 to FY23.
As noted earlier in the energy usage
section, our electricity consumption
increased from 4,799,812 kWh in
FY22 to 5,269,331 kWh in FY23.
However, location based emissions
associated with the purchase of
electricity stayed consistent in tCO2e
terms due to the lower UK emissions
factor for grid electricity in 2022
compared to 2021.
3 8 Motorpoint Group PLC | Annual Report and Accounts 2023
A full breakdown of our category justification and calculation methods
can be found on our investor website.
Motorpoint Scope 1, 2 and 3 emissions
Total Scope 1 emissions
Total Scope 2 emissions
Scope 3 emissions
Category 1
Purchased Goods and Services
Category 2 Capital Goods
Category 3
Fuel and Energy
Category 4
Upstream Transportation
Category 5 Waste
Category 6 Business Travel
Category 7
Employee Commute
Category 8 Upstream Leased Assets
Category 9 Downstream Transportation
Category 10 Processing of Sold Products
Total category
emissions
Percentage
of Motorpoint
footprint
1,290
1,019
12,311
317
478
5,588
213
157
395
N/A
1,181
N/A
0.28%
0.22%
2.63%
0.07%
0.10%
1.19%
0.05%
0.03%
0.08%
N/A
0.25%
N/A
Category 11 Use of Sold Products
445,954
95.11%
Category 12 End of Life Treatment of Products
Category 13 Downstream Leased Assets
Category 14 Franchises
Category 15
Investments
Total Scope 3
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
“ For the first time
in FY23, we set
ambitious targets
aimed at focusing on
the core of the most
important aspects of
environment for our
stakeholders.”
Carbon offsetting
In FY23 we have committed to
offsetting our emissions disclosed
via SECR for Scope 1 and 2 through
purchasing carbon credits.
Progress against targets:
For the first time in FY23, we set
ambitious targets aimed at focusing on
the core of the most important aspects
of environment for our stakeholders.
These were:
• achieve 10% reduction in like for
like energy usage vs FY22; and
• achieve zero waste to landfill by
466,595
99.5%
the end of FY23.
Total Scope 1, Scope 2 and Scope 3 emissions
468,904
100.0%
As noted in our energy usage
section, Motorpoint achieved a 7.3%
reduction on a like for like basis
with its energy usage. Whilst we are
pleased with obtaining this result, we
recognise there is more to do in this
area and will be using the findings
from the phase 3 of our ESOS report
to support the continuation of this
target moving forward.
With respect to zero waste to
landfill, we were pleased to achieve
just 0.2% of our waste going to
landfill, whilst narrowly above the
0% target, owing to necessary site
refurbishments. We are confident we
can continue to further reduce the
waste going to landfill in FY24.
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S O C I A L
From the very beginning, Motorpoint
has been a people focused business
– and our team members have always
been at the heart of our business
model and our Virtuous Circle.
We have always stood up to be the
Car Buyer’s Champion, making sure
our customers can buy a quality
nearly new car with no hassle from
a trusted business that does things
in the right way. Then there are the
communities that we work within.
Wherever we do business, we want
to bring high quality employment
to the community through our
team members and their families,
but more than that we want to be
a positive force for good, helping
those less fortunate, supporting
those starting out in life, facilitating
opportunities and generally making
sure that wherever we trade, the
community is a better place for
having Motorpoint nearby.
Health & Safety
The Board recognises that the
highest levels of safety are required in
order to protect our employees and
customers. The Board believes that all
incidents and injuries are preventable,
and that all employees have the right
to expect to return home safely at the
end of every working day.
This year we have appointed
Callidus to provide comprehensive
consultative support and advice to
managers at all levels for health and
safety matters across the Group.
Callidus report monthly to the Board
on all key health and safety issues.
The Board requires that the Group
systematically manages its health
and safety hazards, sets objectives
and monitors progress by regular
measurement, audit and review.
Managers and supervisors
across all levels in the Group are
responsible for managing the
health and safety of their teams as
part of promoting and embracing
a positive health and safety
culture. The Board emphasises
the importance of individual
responsibility for health and safety
at all levels of the organisation,
and expects employees to report
potential hazards, to be involved
in implementing solutions and to
adhere to rules, procedures and
Group policies. A key element in the
continuous improvement of health
and safety management is sharing
best practice and lessons learnt
from incidents across the Group
and the wider industry. Accidents,
incidents and near misses are
investigated, with actions generated
to prevent recurrence.
To embed health and safety
practices in the wider workforce,
we ensure that all our employees
receive health and safety training
modules as part of a two year
training cycle. Completion is
monitored centrally and late
completers are notified to their line
manager on a monthly basis.
Our people
Our people have always been
the heart of our business. Our
achievements this year can be
attributed to our talented teams
who worked in line with our Values,
demonstrating real resilience
through a challenging year. Our
people have made sure that our
customers have continued to
receive industry leading service as
demonstrated by Feefo / Trustpilot;
our preparation teams have looked
after thousands of cars, ensuring
that there’s no car like a Motorpoint
car; and at Head Office, our teams
have supported the wider business
and accelerated our strategic
digital transformation journey. Our
approach to developing a high
performing and inclusive culture
is achieved through a number of
initiatives and is explained on the
following pages.
4 0 Motorpoint Group PLC | Annual Report and Accounts 2023
O U R P E O P L E – F Y 2 3 H I G H L I G H T S
73
Promotions
4.3
Glassdoor
rating
(out of 5)
794
Team
members
97
Long Service Awards
Spread across 5, 10, 15 and
20 years’ service awards
205
New hires
“ Being able to share insight, networks and time with schools to help make
their career services meaningful will deliver a more sustainable and positive
landscape for everyone. Many young people, through no fault of their own, do
not have the opportunity to experience what careers may exist for them and
the Cornerstone Employers’ network can help change that.”
Cat Moseley, Chief People Officer
Our Values
We are proud
We are proud of what we do, how
we do it and the people who make
it happen – we stand out from the
crowd and are proud to work as part
of Team Motorpoint.
We are supportive
We have a one team ethos and
understand that together we achieve
more. We are a united team focused
on a common goal and vision and
will always help our customers and
colleagues alike #drivingdreams®.
We are happy
We enjoy what we do and we show
it – a smile is contagious and our
teams wear them naturally with
pride. A happy team makes for
a better working environment
which in turn translates to a great
customer experience.
We are honest
We speak the truth and give honest
feedback at all times; this applies to
our teams, investors and customers.
Courage and honesty are the
vehicles for positive change and
Team Motorpoint has embraced this.
We do all of this together
We are equal parts of the whole
and we are stronger together.
Our Values were updated and
have been in place since 2018
and they continue to be a true
reflection of how we work together
at Motorpoint. In November 2021,
we launched our Leadership
Behaviours, demonstrating to
leaders at all levels across the
business what good leadership looks
like at Motorpoint and what we, and
our team members, expect from a
Motorpoint Leader. These have been
embedded across our processes
to bring them to life and make sure
that we keep these front of mind.
Diversity, Equity and Inclusion
We want everyone to be proud to
work for Motorpoint. We want to
make sure that there is respect for
difference and there’s true inclusion
at every level of our workforce, and
for our customers, right across the
UK. We believe that everyone should
be welcomed and treated equitably
by being given the same chance of
success, whoever they are, whatever
they do and wherever they’re from.
An inclusive culture at Motorpoint
is our aim, a culture where our
values Happy, Honest, Supportive
and Proud underpinned by working
Together are more than words but
are demonstrated by all of us each
and every day.
Diversity, Equity and Inclusion is
a key enabler to achieving our
strategic goals. The more diverse,
equitable and inclusive we are,
the more successful we will be at
attracting, retaining and developing
a diverse workforce. The more
diverse, equitable and inclusive we
are, the easier it will be for us to
connect with and serve our diverse
customers. Different perspectives
allow us to make better decisions.
Doing nothing in respect of being
a diverse, equitable and inclusive
company is not an option, and
without it we limit our potential.
This extends to our people, our
customers, our investors and the
wider communities we operate in.
Everything we do is focused on
making Motorpoint a place where
everyone feels valued, respected,
and supported to be their best –
creating role models who display
our values to each other and to
our customers.
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Our Approach to Diversity,
Equity and Inclusion
Our approach to which will enhance
our strategy to create an even more
inclusive culture of support and
togetherness.
Our Commitments
1. As a Senior Leadership Team we
will lead by example.
2. We will create an inclusive culture.
3. We will attract, retain and develop
a diverse Motorpoint team.
4. We will create more diverse
voices around the senior
leadership table.
5. We will create more customer
and community connectivity.
Cornerstone Employers’
network – continuing to
support the next generation
We continue to be a Cornerstone
Employer for the Careers and
Enterprise Academy. A Cornerstone
Employer is a business that is invested
in the successful and sustainable
delivery of careers education for
young people and commits to join a
leadership group of local businesses
to support the schools, colleges and
young people in their area.
We maintained our partnership
and delivered a significant number
of initiatives throughout the
year, including the Open Doors
programme (which gives young
people the opportunity to take
part in a series of sessions to gain
an insight into our business, meet
employees and complete work
related tasks), reverse jobs fairs to
improve employability skills, as well
as a virtual employment project
with Special Educational Needs and
Disabilities (‘SEND’) students.
We assumed the role of a lead
employer for SEND schools and are
proud of the work we have started
doing with Project SEARCH as a
Local Enterprise Adviser. Project
SEARCH helps young people from
across Derbyshire with different
forms of learning disabilities to
gain new skills as well as practical,
work based experience through
a structured personalised study
programme as they look to make
successful transitions from school
to a productive adult life.
In 2022, we appointed our first Early
Careers Partner who is actively
engaged in the Cornerstone network
and has improved our activity in this
area. In November for example we
presented to nearly 300 pupils about
the potential career opportunities
offered by the automotive industry.
Partnership with the
Automotive 30% Club
We have continued our membership
and support of the Automotive 30%
Club. The Automotive 30% Club
undertakes a range of campaigning
and lobbying work and has inspired
many in the automotive industry
to get behind a range of gender
balance initiatives and educational
programmes for young people
regardless of gender.
Members of 55 / Redefined
We are members of 55 / Redefined
who are a champion for the over 50s
by challenging the status quo and
advocating for age diversity, positivity
and inclusion across all areas of life.
42 Motorpoint Group PLC | Annual Report and Accounts 2023
Gender Pay Gap
The Gender Pay Gap is the difference
between the average pay of men
compared to the average pay of
women, and is expressed as a
percentage difference.
In calculating these figures, the Mean
figure is a sum of the hourly pay rate
for all women in the organisation
divided by the total number of
women. We then repeat the process
for men and the pay gap is the
difference between the two.
The Median gap is calculated by listing
the hourly pay rates for each of the two
groups and taking the middle amount
(the median). We then subtract the
median figure for the women’s group
from the men’s, divide it by the men’s
median hourly pay rate and multiply by
100 to get the percentage.
Total Pay Gap
Salary Pay Gap
Mean
Median
18.1%
-1.8%
3.4%
0.2%
Bonus Pay Gap
65.7% 28.2%
Gender mix
Senior Leadership
Leadership
Manager
Team Member
All employees
Male
8 (73%)
27 (73%)
66 (72%)
518 (79%)
619 (78%)
Female
3 (27%)
10 (27%)
26 (28%)
136 (21%)
175 (22%)
Although we have made some great
progress in closing our Gender Pay
Gap through the development and
recruitment of females into leadership
roles, we acknowledge there is still
some work to be done to further close
our Gender Pay Gap. For comparison,
the average median pay gap in the
UK stands at 9.4%. We will continue
to ensure equality across our key
leadership roles; an area of opportunity
is our Sales Executive demographic. As
only 9.5% of our Sales Executives are
female, the average hourly pay for this
group sits within our Upper Quartile.
All roles at Motorpoint are eligible for
a performance related bonus which
means that the vast majority of our
team received a bonus in the last 12
months, irrespective of their gender.
The bonus pay gap which we have
reported can be related to the gender
split across the quartiles, especially in
the upper and upper middle quartiles,
where bonus is relative to base salary
and where fewer females occupy the
highest earning roles.
The Gender mix table sets our
gender breakdown at various levels
in the Company, including the
breakdown for all employees, based
on the 794 individuals employed as
at 31 March 2023.
Motorpoint Group PLC | Annual Report and Accounts 2023
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Our gender mix is in line with the
wider automotive industry but we
always want to improve and lead the
industry, hence our involvement in
the Automotive 30% Club and an
increased focus on graduates and
apprentices who generally provide
a better gender mix for team
members joining us.
Motorpoint in the community
This year we have significantly
increased our support and
involvement in the many
communities in which we work.
Local level
This year we reworked our charity
strategy. We realised that it was
important to engage with a local
charity per store that resonates not
only with the staff of that store but
also the local community. Working
with 19 charities has not only
increased the store team charity
engagement but also built a greater
relationship with Motorpoint and
each of the communities.
Charities were supported by event
sponsorship support, enabling them
to raise needed funds by actioning
the event. As examples: St David’s
Hospice has raised over £100k,
Prince of Wales over £80k, Demelzas
£20k, St Roccos, £25k, St Cuthberts
£60k, and JPC farm £200k through
our commitment to supporting them
and event sponsorship.
Arena tickets have been donated
to various non associated store
charities for their own fundraising
activities with a collective total of
over £2k raised.
Our stores were offered as an event
venue for their own events instead
of us holding our own event raising
funds for the charities. This was
trialled at Christmas with Myton
Hospice Coventry and Prince of
Wales Hospice Castleford, both
raising over £5k at the event with
Motorpoint providing not only the
venue but also the Santa’s grotto
so additional funds could be raised
through ticket sales.
The Community Hero initiative was
created, and run on social media
where the public could vote for their
local heroes to receive the prize on
offer – Newport based foodbank
was gifted Cardiff arena tickets,
and 20 children were mascots at
Peterborough FC.
National level
On a national level, all stores were
listed as drop off locations for
Operation Christmas Child. The
public dropped off their donations
for the Xmas Box appeal in store. The
campaign was a huge success with
1,223 boxes being delivered to stores
across the country and collected by
the Samaritans. Next year we hope to
amplify the campaign and encourage
staff to get involved using their
volunteer days at the various box
sorting locations.
Each quarter we now have a
nominated charity on Workplace, our
people community’s platform, where
ticket raffle funds are sent. This has
been a new initiative that has seen
great support and as an example,
we raised over £300 for African
Adventures at the end of the year.
4 4 Motorpoint Group PLC | Annual Report and Accounts 2023
Charitable partner
Sponsorships
Birmingham Children’s Hospital
St Cuthbert’s Hospice
Pendleside Hospice
Prince of Wales Hospice
Yardley School
Myton Hospice
Burnley Golf Centre
Snaith Football Team
Derby County Community Trust
Nottingham Lions Wheelchair Basketball
St Columba’s Hospice
Beatson Cancer Care
Motorpoint Arena Nottingham
Derby County Community Trust
Panthers Ice Hockey Power Break
Calderbraes Football Team
Demelzas Childrens Hospice
MPE Football Team
St Ann’s Hospice
St David’s Hospice Care
Salvo Autism in Racing
Newport FC Academy
Victor Karlaker – Bristol Pitbulls
Chloe Higgs – Ice Skater
Birmingham Children’s Hospital
Birmingham Hospital Rugby Team
Sue Ryder Hospice Care
Pompey in the community
St Luke’s Hospice
JPC Community Farm
Maggies Cancer Care
James Bulger Memorial Trust /
St Roccos Hospice
Elsecar Main Football Team
Morristown Football Club
Riley Powell – Pool Player
Store
Birmingham
Birtley
Burnley
Castleford
Chingford
Coventry
Derby
Edinburgh
Glasgow & Motherwell
Maidstone
Manchester
Newport
Oldbury
Peterborough
Portsmouth
Sheffield
Stockton on Tees
Swansea
Widnes
“ This year we
reworked our
charity strategy.
We realised that it
was important to
engage with a local
charity per store
that resonates
not only with the
staff of that store
but also the local
community.”
Motorpoint Group PLC | Annual Report and Accounts 2023
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E N V I R O N M E N TA L ,
S O C I A L A N D G O V E R N A N C E C O N T I N U E D
Team member level
We recognise that our team members
have busy lives and differing priorities
outside of the workplace. Many
of them will have causes that are
close to their hearts and personal to
them. To support them with this, we
continue to offer all colleagues the
opportunity to donate to these causes
via Payroll Giving.
Doing the right thing
for our people
At Motorpoint we believe that the
combination of our focus on driving
dreams, robust ESG credentials and
our people and culture, not only
differentiates us from our peers but
also gives us a competitive advantage.
We believe that Motorpoint is an
amazing place to work but we
constantly strive to become an even
better place to work. The Virtuous
Circle is at the very heart of the way
we do business as we genuinely
believe that if we get it right for
our team members, they will get it
right for our customers and that will
create stronger performance for
all of our stakeholders. We are very
proud to have been listed in Best
Companies’ ‘Best Places to Work’ list
for nine consecutive years.
To ensure that we maintain our focus
on team member engagement and
genuinely live our values Proud,
Happy, Honest, Supportive and
Together, we undertake a wide range
of team member focused activities,
some of which are as follows:
Listening to our employees
We have taken part in the Best
Companies b-Heard survey for the last
nine years and this gives us high quality
feedback from our team members
on what they like about working for
Motorpoint and, more importantly,
where we can improve. This year,
we ran two surveys for the first time
and we achieved a 1 Star (very good)
accreditation. Of course, the important
thing about an engagement survey
are the actions that you take as a result
of the feedback and at Motorpoint all
areas of the business are expected to
create an Action Plan based on their
team feedback and are measured on
delivery against those plans.
Alongside the b-Heard survey, every
manager in the business with more
than three direct reports receives
an individual management rating
known as MC3. This provides
feedback to every manager on how
they Motivate, Consider, Converse
and Care for their teams. This year
we will also be combining the
manager’s feedback with our new
Leadership Behaviours and have
completed a 360 review based on
these behaviours for every manager
in the business. Our aim is to ensure
we are supporting our managers in
becoming truly best in class leaders.
As well as surveys, the Senior
Leadership Team (‘SLT’) spend a
significant amount of time in stores
speaking to colleagues at all levels.
This year we launched “Ask me
Anything” listening sessions where
members of the SLT held feedback
sessions across the country helping
us understand the issues faced
by our team members and hence
improved the experience for our
team members and customers.
Learning and development
Following the pandemic, which
impacted our Learning and
Development (‘L&D’) activity during
2022 we have consolidated, reviewed
and relaunched our learning and
development offer for our team
members. Our team members are
the start of our Virtuous Circle and
our ability to develop their skills,
capabilities and their careers is a key
part of the attraction of working for
Motorpoint and ultimately will impact
the service levels experienced by
our customers.
At Motorpoint we have developed a
blended approach to learning and
development to ensure we meet the
many different L&D requirements
of our diverse team base. We have
online learning options for both
mandatory training and to support
developmental needs. We have
a range of face to face options
covering more leadership skills
and we actively encourage a one
to one coaching approach at a
management level.
4 6 Motorpoint Group PLC | Annual Report and Accounts 2023
We are also increasing our focus on
apprenticeships and early careers.
This year we have appointed our
first Early Careers partner whose
aim is to rapidly expand our
apprenticeship offer across the
business. In a world where vehicle
maintenance / preparation skills
are in short supply we see this
as a key part of our strategy to
build a leading team. We are also
developing apprenticeship offers
across the business and functions.
Wellbeing
The wellbeing of our team members
has always been important to us at
Motorpoint. Happy and Supported
are two of our Values and our focus
on the Virtuous Circle means we are
naturally concerned about how our
colleagues are feeling emotionally,
physically, mentally and financially.
We have invested in mental health
first aid (‘MHFA’) training and have
made it compulsory for all managers
in the business to be trained as well
as training further team members in
each of our sites to be able to offer
support locally when needed.
Our One Big Dream scheme gives
the gift of time and flexibility, and
allows an individual to take time
out, once a month, fully paid, to do
something that matters to them.
In FY23 we offered over 20,000
hours of additional paid time off
to our employees as part of this
scheme. We only ask that employees
do something that will genuinely
drive their happiness. This benefit
has received immensely positive
feedback and has been used across
an array of activities. The diversity
of people’s selection demonstrates
just how important it is to apply the
flexibility to our employee benefits
in order to have a real impact on
personal wellbeing. We also give
extra leave for birthdays, moving
house and getting married.
We continue to partner with
Sovereign Healthcare to provide
a 24-hour employee assistance
programme for our team members.
This provides a counselling hotline
for team members with issues
across a wide range of subjects
that may be impacting their lives
and gives potential access to face
to face counselling if required. We
also provide financial support via
Sovereign Healthcare to all team
members for key health treatment
including optical support, physical
therapy and dental care.
We have recently relaunched
our benefits platform My M.O.T.
(Motorpoint Offers and Treats)
and have upweighted our focus
on wellbeing by offering our team
members a wide range of benefits,
discounts, access to materials and
advice on physical, mental and
financial wellbeing areas.
Of course, one of the best ways
to ensure our team members’
wellbeing is to provide high quality
jobs that reward people well,
providing fulfilling and enjoyable
work in a supported environment
with quality managers and leaders.
This provides opportunities to
grow and develop personally and
professionally and that brings us all
the way back to the Virtuous Circle
and our Motorpoint Values.
“A friendly, supportive, happy
workplace culture that has values
aligned with all employees that
work here. Open to feedback and
sharing ideas. The benefits are
excellent – food purchased by
Motorpoint every month, team
nights out once a quarter, cheap
car finance rates, a great Christmas
party and excellent pay/Bonus
package. Cycle to work and the
healthcare package are also fab
benefits. Motorpoint value you and
anything that’s bothering you can
be discussed on monthly 121s with
manager. My wellbeing is put first
and the onsite Mental Health First
Aider is not something I’ve seen at
any other places I’ve worked”
Car Prep
Service Agent – Glassdoor
17 January 2023
Motorpoint Group PLC | Annual Report and Accounts 2023
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G O V E R N A N C E
We take our governance
responsibilities seriously and are
committed to promoting a culture
within Motorpoint where everyone
does the right thing and always
acts with integrity, aligned with
our shared values. We require
all employees and third parties
who act on our behalf to conduct
business with integrity, and to take
personal responsibility for ensuring
that our commitment to sound and
ethical business conduct
is delivered.
Whistleblowing
We operate a confidential
whistleblowing hotline which is
available for all of our team and
our suppliers, to give them the
opportunity to raise any issues
about dishonesty or malpractice
within Motorpoint; the results of
which are independently collated
and submitted to the Risk and
Compliance Committee. The Chief
People Officer reports regularly
to the Audit Committee on
whistleblowing matters.
Anti bribery and corruption
Our anti bribery policies and anti
money laundering policies were
refreshed during the year following
a review and were communicated
to all employees. Motorpoint has
a zero tolerance policy in respect
of bribery and corruption. This
extends to all business dealings
and transactions, and includes a
prohibition on offering or receiving
inappropriate gifts or making undue
payments to influence the outcome
of business dealings.
Employees are required to disclose
offers of gifts, hospitality or other
incentives with a value of more
than £100. All employees receive
communication of the relevant
policies as part of the onboarding
process and new versions are sent
out if updated.
The Group does not make
political donations.
Treating Customers Fairly
Treating Customers Fairly (‘TCF’) is a
regulatory requirement and applies
to all regulated firms in the conduct
of their business. The Financial
Conduct Authority (‘FCA’) regards
fair treatment of customers by firms
as a key part of FCA regulation in the
retail market.
TCF is a core foundation of
delivering our retail proposition of
Choice, Value, Service and Quality,
and is thereby fundamental to
delivering long term business value.
To this end, the Board has reviewed
and maintained our Treating
Customers Fairly and Vulnerable
Customers policy. Through
concerted focus, TCF has become
an integral part of the culture and
is subject to frequent and rigorous
scrutiny within all forums that
consider, inter alia, customer facing
processes, employee remuneration,
and product selection. We are
committed to delivering the best
possible service to our customers,
with objectives across the business
reflecting this aim.
In particular, the following business
areas are under constant review
in light of changes to Motorpoint’s
business model, customer
requirements or the regulatory
environment:
• marketing practices, including
promotional material;
• sales processes, whether on site,
via the contact centre or digital;
• customer communication;
• record keeping; and
• complaints handling.
A review and reporting environment
has been developed to ensure that
Motorpoint’s high expectations are
met and that all systems, people and
processes are supported to achieve
our TCF objectives, including via:
• qualitative quality controls, such
as after sale customer interviews
and mystery shoppers;
• quantitative quality controls, such
as cancellation rates for products
within their cooling off period; and
• ongoing training and support for
our team, including personalised
and scheduled refresher training.
4 8 Motorpoint Group PLC | Annual Report and Accounts 2023
The Consumer Duty
The Consumer Duty is a suite of
new regulations introduced by the
FCA that set a higher standard for
the treatment of consumers using
financial services and products.
The duty requires firms to put their
consumers’ interests first, making it
easier for them to make decisions in
their best interests and receive
good outcomes.
The regulations go further than
the TCF regulations and require all
regulated firms to be compliant
by 31 July 2023 for open products
and services.
The duty sets an overarching
principle, cross cutting rules and
requires implementation across four
key outcomes. Below is an outline
of the duty and a description of how
Motorpoint governs its ongoing
compliance with the duty.
Motorpoint welcome the FCA’s new
regulations. Whilst the Group’s FCA
governance processes already in
place in respect of TCF are aligned
with much of the new legislation,
a specific working group was
formed in the year to address the
new legislation and ensure that
Motorpoint’s systems, processes
and controls are appropriately in line
with the new consumer duty.
Area
Description
Motorpoint Governance
The Consumer
Principle
This is the overarching principle that defines the purpose
of all the new Consumer Duty regulation, that “firms
must act to deliver good outcomes for retail customers”.
The Cross
Cutting Rules
1. ‘Acting in good faith’ (e.g. not taking advantage of any
lack of knowledge on the consumer’s part).
2. ‘Avoiding foreseeable harm’ (e.g. performing
affordability checks prior to application).
3. ‘Supporting consumers in achieving their financial
objectives’ (e.g. providing a straightforward method
of cancelling a product should it be in the customer’s
interest to do so).
Motorpoint has appointed a specific
working group covering all aspects
of the duty, led by the Customer
Experience Director, with the
work of the group reported to the
Motorpoint PLC Board.
The working group has worked
with the business areas already
highlighted in the TCF section to
ensure that the governance and
constant review are aligned with the
cross cutting rules of the consumer
duty. This has included a process
mapping exercise ensuring complete
coverage of the legislation.
The Four
Outcomes
Product and services:
The actions required for this outcome will differ depending
on firm status as a manufacturer, co-manufacturer, or
distributor. Overall, it requires firms to work to ensure
the products and services they offer are right for the end
consumer and consider any vulnerabilities their target
market may have that can be accounted for.
As a part of Motorpoint’s
implementation plan for the
consumer duty, a full review of
the customer journey has taken
place in the year to ensure all four
outcomes are appropriately in line
with the legislation.
The working group has worked
with the business to ensure that
the customer journey remains
under constant review and has a
governance structure in place that
ensures continued compliance with
the legislation.
Motorpoint has worked closely with
its product suppliers (‘lenders’)
for regulated consumer products
and ensured that the findings from
the lenders in respective of the
consumer duty were included within
our customer journey governance.
Price and value:
Firms should focus on the fair pricing of their products
and offering value for money. Firms should review
commission arrangements and for example, ensure they
do not encourage the sale of products that are not in the
consumer’s interest.
Consumer understanding:
The FCA feels the consumer is often placed at a
disadvantage due to a lack of knowledge about the
products or services a firm is selling, while the firm has
the greater understanding. This outcome serves to make
firms address this imbalance to allow consumers to make
informed decision. This could take the form of providing
further information in an easily digestible and accessible
way when it is most relevant to the consumer.
Consumer support:
This outcome includes the numerous ways in which firms
act to communicate with consumers and provide their
services. There should be straightforward processes. The
key message from the FCA here being that it should not
be any more difficult to cancel, switch or complain about a
product than it is to purchase it initially.
Human rights
Motorpoint conducts business in an ethical manner and adheres to policies which support recognised human rights
principles. We continue to address the risks of modern slavery and human trafficking, with the Board debating and
adopting the annual Anti Slavery Statement and raising awareness of the risks across the business. We work with
our suppliers to protect workers from abuse or exploitation by communicating to them the terms of our Anti Slavery
Statement and request their adherence to our policy.
A statement of the Group’s compliance with the Modern Slavery Act 2015 can be found
on the Group’s website at | www.motorpointplc.com
Motorpoint Group PLC | Annual Report and Accounts 2023
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GovernanceStrategic ReportFinancial Statements TA S K F O R C E O N C L I M AT E R E L AT E D
F I N A N C I A L D I S C L O S U R E S ( ‘ T C F D ’ )
We support the Task Force on Climate related Financial Disclosures (‘TCFD’) and its
recommendations and are making TCFD disclosures consistent with TCFD’s recommendations
and recommended disclosures, in line with our prior year commitment and in consideration of
the all sector guidance.
We recognise that climate change is the most serious challenge to the global community, and we understand
we have a role to play in reducing greenhouse gas emissions and striving for change in the industry. The effects
of a transitioning economy will directly affect the motor industry throughout the value chain, evidenced by the
UK Government’s commitment to the end of the sale of conventional new petrol and diesel cars by 2030. We are
committed to continuously measuring and assessing the impacts of climate risks and opportunities across our
operations, physical stores and supply chains.
Our pathway to full disclosure is as follows:
Progress in
FY23
We have successfully completed our scenario planning
exercise, modelling three scenarios using the IEA World
Energy Outlook 2022, as well as a range of inputs
and bespoke considerations for the specific risks that
Motorpoint faces.
We have also successfully materially assessed and
disclosed the relevant Scope 3 emissions for Motorpoint.
Roadmap for
the future
Our strategy on how to achieve a complete transition to a
lower carbon operating model is still reaching maturity.
We are exploring initiatives such as an ESG reporting
framework, accreditation and fully aligned and integrated
Science Based Targets, as well as the potential for a formal
carbon reduction plan.
5 0 Motorpoint Group PLC | Annual Report and Accounts 2023
Governance
Increased focus on climate related matters
Board of Directors
•
• Review and approve climate related risks and principal risks
• Quarterly reviews of climate related risks
• Chris Morgan, CFO, climate related risk register owner
Audit Committee
• Provides twice yearly
overviews of the risks
facing the organisation,
including climate change
risk on the agenda
• Reviewed Board paper in
January 2023 containing
climate related risks
and opportunities, and
planned TCFD disclosures
Executive Risk
and Compliance
Committee
• Delegated responsibility
for identification,
management and
assessment of the
Group’s risks
• Quarterly reviews of the
Group Risk Register
• Quarterly reviews of the
Group’s emerging risks
• Review and management
of climate related risks
• Twice yearly review of the
Group’s principal risks
Environment, Social
and Governance
(‘ESG’) Committee
• Established an ESG
committee to be
responsible for
assessing the Group’s
environmental
sustainability strategy
a) Describe the Board’s
oversight of climate related
risks and opportunities.
The Board of Directors is ultimately
responsible for the oversight of our
climate related risks and opportunities
impacting the Group. The Board’s
oversight is supported by three
committees who have delegated
responsibility over various aspects of
governing the Group’s climate related
risks and opportunities.
Climate related risks, including the
risks of a transitioning economy as
well as physical risks to Motorpoint
sites and stores are integrated
as a part of our risk management
framework. A dedicated climate
related risk register is maintained
which is monitored and assessed at
regular intervals.
The Board has oversight of
climate risks and opportunities
through escalation via the Risk and
Compliance Committee as noted in
the diagram above.
The Group Risk and Compliance
Committee has a responsibility to
monitor and oversee emerging risks
and as such our climate risk register
was reviewed at least quarterly by
the Board and key management
personnel in the year.
As well as the Board, the Audit
Committee provides twice yearly
overviews of the risks facing the
organisation, including climate
change risk on the agenda.
b) Describe management’s
role in assessing and
managing climate related
risks and opportunities.
Management’s role is to ensure
that the day to day management
of climate related risks and
opportunities are delivered along with
delivering the strategy with respect
to offsetting our carbon output, in
line with our roadmap to becoming a
more sustainable business.
Our Head of Sustainability is
responsible for implementing
the Group’s strategy in respect of
water and waste management –
key elements in our ambition to
be a more sustainable business. In
addition, our Head of Sustainability
is responsible for the measurement
and reporting of our GHG emissions,
which are disclosed in line with
SECR in the environment section of
the annual report, pages 36 to 39.
We have expanded our tracking of
emissions in the year to include a full
breakdown of our Scope 3 emissions.
These can all be found on page 39.
Our finance function is responsible
for supporting the business in
understanding the financial impact
of the Group’s climate related
risks and opportunities and has
undertaken a high level financial
analysis this year to help understand
the potential effects on the Group’s
assets and costs.
Motorpoint Group PLC | Annual Report and Accounts 2023
51
GovernanceStrategic ReportFinancial Statements TA S K F O R C E O N C L I M AT E R E L AT E D
F I N A N C I A L D I S C L O S U R E S ( ‘ T C F D ’ ) C O N T I N U E D
All of the Group’s functions are
responsible for implementing risk
management practices as defined
in the risk management framework,
including in relation to climate
related risks and opportunities.
Strategy
Our climate change strategy is
underpinned by our desire to offset
the carbon we produce and to be a
responsible, sustainable organisation
whilst also ensuring climate related
risks are within appetite and
opportunities are appropriately
identified and maximised. We consider
the short term horizon in line with our
risk management framework to be the
possibility of a risk event crystalising
over any of the next three years.
Medium term analysis is defined as
an outward looking five years beyond
the short term risk window. Long term
analysis is defined as anything beyond
the medium term window. During
the year, the CFO continued as the
risk owner for our climate risks and
opportunities.
a) Describe the climate related
risks and opportunities the
organisation has identified
over the short, medium and
long term.
Following the integration of climate
risk and opportunity this year into the
Group’s risk management processes,
we have assessed our risks and
mapped them to our principal risks.
The summarised climate related
risk register can be found on pages
56 and 57. We have kept our short,
medium and long term definitions
consistent with the prior year, with
short term risks being those that
would crystalise within the next three
years and medium risks being the five
year window beyond short term risks.
As such, our long term risks are those
designated as eight years or more in
the future.
Our opportunities are disclosed
below along with the applicable
time frames:
Area:
Opportunity:
Time Frame
Competition
and Market
• Increased opportunity to take market share by being a leader on Choice, Value,
Medium
Quality and Service across zero emission vehicles.
Supply Chain
• Opportunity to maximise on an efficient, sustainable supply chain.
Medium
Technology
• Opportunity to take advantage of new technology helping the business achieve
Medium
net zero across its Scope 1 & 2 emissions more quickly.
Brand and
Reputation
Physical
Locations
• Opportunity to have a reputation for being a responsible, sustainable company
Medium
which will be increasingly important for consumers.
• We expect an increased opportunity to be able to have a more sustainable
Long
footprint with new ways of running a store with sustainable energy generation,
more efficient stores and an opportunity to consider nature reclamation and
air pollution ideas in the stores of the future.
The responsibility for maximising
opportunities ultimately lies with the
Board, with delegated responsibility
to the ESG Committee for reporting
on possible opportunities in
these areas.
All of the risks identified are within
the scope of the Group’s emergent
risk process and none of the risks
identified were assessed as being
material in the short term. This
will be carefully monitored in line
with the Group’s risk management
processes and will be enhanced by
the Group’s plans around scenario
planning in the future.
b) Describe the impact
of climate related risks
and opportunities on the
organisation’s business,
strategy and financial planning.
During the year we undertook an
exercise as a part of our financial
planning looking at future cash
flows across three IEA Global
Energy Outlook Scenarios to ensure
that our climate related risks had
been considered for any increased
costs when considering the value
of our assets and future forecasts.
The findings from this work
were that when including these
additional costs in future cash flows
in respect of climate related risks
across what the Board believe to be
plausible outcomes, there was not
a significant risk of impairment to
our future operating model assets
or any short term risk identified
indicating a possible impairment
over current assets.
With respect to judgements made
over the future business and
strategy, the Group anticipates a
natural shift in consumer choice
towards alternately fuelled and
Electric Vehicles (‘EVs’) in the
medium term.
We considered in our scenario
analysis the risk of increased taxation
and legal requirements should the
Group fail to achieve its net zero
ambitions as well as the physical
risks of climate change to our
physical store locations, based on an
estimation of our future footprint.
We note that our carbon footprint,
when taking into account Scope
3 emissions, is disproportionately
outweighed by the use of our sold
products category, relating to the
emissions of internal combustion
engine vehicles. As a used car
retailer, we need all manufacturers
to improve their proposition on
zero emission vehicles, so that we
in turn can offer our customers the
same Choice, Value, Service and
Quality without compromising on
product or convenience, noting that
many customers still have concerns
contemplating the switch to zero
emission vehicles.
52 Motorpoint Group PLC | Annual Report and Accounts 2023
The Group has undertaken activity in the year to execute the prior year planning work on transition mitigations:
Prior Year Plan
Current Year Execution
• Planning in place for increased electric charging
points for customer convenience at our stores.
• Our new Coventry and Ipswich stores have EV
charging points installed for both customer use and
in preparation. Rollout of charges at existing stores
is underway.
• Technicians trained and ready to prepare EVs.
• All technicians including new team members in this
role are trained to safely prepare EVs.
Other impacts in respect of business and strategy can be seen on pages 56 and 57 in our climate risk and
opportunities register which includes any current plans for risk mitigations across our business and strategy.
c) Describe the resilience of the organisation’s strategy, taking into consideration different climate
related scenarios including 2° or lower scenario
Net Zero Emissions by 2050 scenario (NZE)
Announced Pledges Scenario (APS)
Stated Policies Scenario (STEPS)
A scenario which sets out a pathway for the global
energy sector to achieve net zero CO2 emissions
by 2050.
Our work on this low carbon transition scenario
focuses on the rapid policy, regulatory,
technological and market changes that will be
required by 2030 to restrict emissions to a level
which limits global warming to 1.5°C.
A more conservative scenario
benchmark for the future,
removing the assumption that
governments will reach all
announced goals. This scenario
takes account of existing policies
and measures as well as those
under development, ultimately
leading to a world with increasing
physical climate change impacts
owing to warming increases
beyond 2.0°C.
A scenario which assumes
that all climate commitments
made by governments around
the world, including nationally
determined contributions and
longer term net zero targets
are met.
This scenario aims to show
the ambition gap, highlighting
how close announced pledges
get to the Paris 2015 target
of limiting the increase in
warming to 1.5°C.
In this climate model, the
warming impact is estimated
to be in the bracket of IPCC
assessed scenarios that limit
warming to 2.0°C.
We used our target operating model for 2030, which assumes we achieve our medium term growth goals and spread our
footprint to 30 stores, in conjunction with the IEA assumptions and inputs in the ’IEA (2022), Global Energy and Climate
Model’. This includes detailed input assumptions over GDP, population and technology changes as well as the specific
elements relevant to Motorpoint under each scenario, including cost of energy and cost of carbon. The effects of each
scenario are shown below.
The IPCC Sixth Assessment Report on Mitigation of Climate Change, released in April 2022, assessed a large number of
scenarios that led to at least a 50% chance of limiting the temperature rise to 1.5°C in 2100. The NZE Scenario trajectory is
well within the envelope of these scenarios.’ IEA (2022), Global Energy and Climate Model, IEA, Paris https://www.iea.org/
reports/global-energy-and-climate-model, License: CC BY 4.0.
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Motorpoint Group PLC | Annual Report and Accounts 2023
5 3
GovernanceStrategic ReportFinancial Statements
TA S K F O R C E O N C L I M AT E R E L AT E D
F I N A N C I A L D I S C L O S U R E S ( ‘ T C F D ’ ) C O N T I N U E D
Net Zero Emissions by 2050 scenario (NZE)
Announced Pledges Scenario (APS)
Stated Policies Scenario (STEPS)
Under the STEPS pathway,
Motorpoint would see reduced
risks of transition in the medium
term, with offsetting costs likely
to be much lower from avoidance
of the modelled increases to the
cost of carbon in the NZE and APS
pathways. However, there would be
greater physical risks to stores and
supply chain.
Our modelling in this scenario
still assumes that Motorpoint
would continue on its path to be
a sustainable business, offsetting
its carbon emissions and helping
customers reduce their impact on
the planet by in turn, reducing our
own emissions.
We would expect greater physical
risks to Motorpoint’s stores in the
long term both acute and chronic
under this pathway.
Possible mitigations may include
strategic placement of future stores
to factor in weather defences as
well as continued detailed business
continuity planning work.
Assessing the inputs and
outcomes of the APS pathway,
Motorpoint would see increased
risks of transition in the medium
term from potentially increased
costs of carbon offsetting, albeit
much less significant than under
the NZE pathway.
In the medium term outlook
for this scenario, we took the
approach that Motorpoint’s
current strategy for EV transition
would be achieved, with a
significant proportion of our sold
products being zero emission
vehicles by 2031.
Under this scenario, Motorpoint
would be on track for the
announced pledges and as
such, we assumed lower costs
of offsetting (compared to ‘NZE’)
would be required, factoring in an
increase for the potential size of
Motorpoint’s footprint based on
the 2030 operating model.
An acute risk of physical damage
to sites would be greater than
the NZE pathway albeit reduced
in the long term compared to the
STEPS scenario. We expect to
mitigate this risk through physical
defences and strategic planning
over the location of our future
stores.
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E
Assessing the inputs and outcomes of the NZE
pathway, Motorpoint would see increasing risks of
transition in the medium term, especially if the cost
of carbon as modelled in the scenario cannot be
mitigated through offsetting using voluntary carbon
markets (‘VCMs’) or achieving natural net zero
across Scope 1, 2 and 3 emissions.
In the medium term outlook for this scenario, we
took the approach of assuming Motorpoint would
still be selling a small proportion ICE vehicles in 2030
and would not totally achieve zero emission vehicles
sales until at least 2034. We also assumed that we
would be mandated to offset any residual carbon
still produced. We modelled offsetting at least as
many tonnes of carbon as we did in 2021, as well as
our Scope 3 emissions for the limited ICE vehicles
sales still expected to be made, and factoring in the
increased cost of carbon. We also factored in an
increased cost of electricity, in line with the modelled
price increases in the IEA ‘NZE’ scenario.
As such, Motorpoint could expect greater carbon
offsetting costs and energy costs which would
increase operating expenditure. However, even in
this scenario, the model showed that the business
would be resilient enough to cope with increased
costs of transition.
In the long term under this pathway, we would
expect the business to achieve significantly reduced
Scope 3 emissions from greater (or total) proportion
of sold products being zero emission vehicles which
would ultimately mitigate the greatest portion of
carbon required to be offset.
Even in the NZE scenario an acute risk of physical
damage to stores remains with effects of warming
limited, not mitigated. We expect to mitigate this risk
through physical defences and strategic planning
over the location of our future stores. Our current
store footprint is substantially low rated for flood
risk. We expect that the chronic risk of sea level rises
as a result of warming impacts to be reduced under
this scenario.
Medium term impact:
Business area
‘NZE’ scenario risk
STEPS pathway risk
Impact of climate risks on
our financial performance
‘NZE’ business area
mitigations
Use of sold products Carbon tax on Scope
3 emissions
Physical damage
to inventory from
increased extreme
weather events
UK stores and
preparation centres
Carbon tax on Scope
1 and 2 emissions
Flood risk
A financial impact
may manifest itself
in an increased cost
of compliance if
Motorpoint cannot
reduce its emissions
in line with the pace
of regulatory change
Infrastructure work
across stores and
preparation centres
to ready for increased
zero emission
vehicles
Continued ESG
strategy work to
reduce Scope 1 & 2
emissions
5 4 Motorpoint Group PLC | Annual Report and Accounts 2023
Risk management
During the year, the Board has
discussed climate change related
matters and identified both risks
and opportunities for the effects of
a transitioning economy as well as
physical risks of climate change.
These have been through a process
of review from both the Group Risk
and Compliance Committee and the
Audit Committee.
The ongoing management of
Motorpoint’s climate risks is
performed through the quarterly
review of the Group’s risk in the Risk
and Compliance Committee. This
is informed by the work of the ESG
Committee, who also meet quarterly.
Our climate risks and opportunities
are mapped to our principal risks
and uncertainties, consistent with
our approach to fully integrate
climate change risk into our risk
management practices.
a) Describe the organisation’s
process for identifying and
assessing climate related risks.
The process for identifying and
assessing climate related risks
is aligned with the Group Risk
Management Framework.
Climate related risks are within the
scope of the Group’s emergent risk
process which feeds from function
level risk management as well as the
Group Strategy. Where an emergent
climate related risk is deemed to be
material to Group strategy it will be
included in the Group Risk Register.
Group risks are subject to Group Risk
and Compliance Committee, Senior
Leadership Team (‘SLT’) and Board
level review. The structure of our risk
management at Motorpoint can be
found in our risk management section
of the annual report.
b) Describe the organisation’s
processes for managing
climate related risks.
During the year climate risks and
opportunities were managed using
a dual approach.
Our journey towards being a more
sustainable company, including
our strategic goals of offsetting the
carbon that we produce, is managed
by the ESG Committee, chaired by
Adele Cooper. The ESG Committee
meets quarterly and ensures
Motorpoint progresses on its journey
of carbon offsetting and analysing our
environmental impact.
Climate related risks, including
risks of a transitioning economy as
well as physical risks to Motorpoint
stores and preparation centres are
integrated as a part of our emergent
risk process, which is a part of our
risk management framework. The
risks on this register were all assessed
to be ‘emerging’ and as such are
monitored closely for the requirement
to enter active mitigation strategies.
The process for managing individual
risks is to carefully monitor the impact
assessment of these risks, with
mitigating activities actioned should
any risk be deemed significant and
outside of Group risk appetite.
All of the climate related risks
identified in the register of emerging
climate risks are related to the Group’s
principal risks, which have their
own wider controls and mitigating
activities. As such, the climate related
risks include mapping to the relevant
principal risk. Details on mitigating
activities for the Group’s principal
risks is held within the principal risks
and uncertainties (‘PRUs’) database.
c) Describe how processes
for identifying, assessing,
and managing climate related
risks are integrated into
the organisation’s overall
risk management.
Risk measurement and assessment
is defined in the risk management
framework and all of our climate
related risks were assessed in line
with the defined criteria for assessing
emerging risks to the business in the
risk management plan.
Ongoing management of risks is
performed in line with our risks
management framework. Where
assessed to be above minimum
risk recognition limits for a low
rated risk (greater than 0% chance
of crystallisation in the next three
years and 2% or greater impact
on key financial targets specific to
that risk) and outside of appetite,
steps are taken to agree mitigating
actions to bring the risk exposure to
within appetite.
Our risk management framework
states that risks are managed on
an integrated basis throughout
our organisation and as such,
function level risk registers were
updated during the year to ensure
consideration of new and emerging
risks, including climate related risks,
where appropriate.
Metrics and targets
The Group has metrics and targets
that facilitate the measurement of the
Group’s impact on the environment
and monitor performance against the
Group’s ambition with respect to the
carbon offset of operations.
a) Disclose the metrics used
by the organisation to assess
climate related risks and
opportunities in line with
its strategy and risk
management process.
The Group’s strategy is underpinned
by a desire to achieve carbon
neutrality, and as such KPIs are
monitored closely, helping inform
the Group over its climate related
risks. The metrics that the Group
monitors are within the scope of
the ESG Committee which provides
oversight and governance. The day
to day management of the Group’s
metrics and targets are within the
scope of the role of our Head of
Sustainability who is responsible
for the implementation of our
ambitions in becoming a more
sustainable business. Our KPIs have
been updated in the year to more
accurately track our emissions and
impact on the environment, which is
governed by the ESG Committee.
The KPIs are:
• KPI 1: GHG emissions (CO2
Scope 1 and 2) as disclosed
in the SECR statement in the
environment section.
• KPI 2: Intensity Ratio as disclosed
in the SECR statement in the
environment section.
In addition, the KPIs are used by
Group Finance to aid its financial
review of climate related risks.
Motorpoint Group PLC | Annual Report and Accounts 2023
5 5
GovernanceStrategic ReportFinancial Statements
TA S K F O R C E O N C L I M AT E R E L AT E D
F I N A N C I A L D I S C L O S U R E S ( ‘ T C F D ’ ) C O N T I N U E D
b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and
the related risks
Our Scope 1, 2 and appropriate Scope 3 emissions are disclosed in our environment section on pages 36 to 39.
c) Describe the targets used by the organisation to manage climate related risks and opportunities
and performance against targets
The principal target for the organisation is in line with the strategy to reach net zero through carbon neutrality, for
its Scope 1 and 2 emissions, and currently recognising that carbon offsetting has a role to play when considering the
whole supply chain (Scope 3 emissions). As such, the KPIs disclosed above are measured carefully to ensure that in
the future, the Group’s targets are met across Scope 1, 2 and 3 emissions.
Risk
classification
Risk area
Mapping to PRUs
Transition
Policy and Legal
Regulatory and Compliance
Timeframe
Long Term
Technology &
Market Risks
Competition, Market and Customers
Long Term
Increased costs from carbon offsetting or needing to enter VCMs to
Medium Term
Not meeting increased demand for electric and alternate fuelled vehicles
Availability and Terms of Customer Finance
Reputational
Risks
Brand and Reputation
Medium Term
People and Culture
Competition, Market and Customers
Physical
Risks
Acute Risks
Supply Chain Disruption
Medium Term
Risk of action from climate action groups disrupting the business
Long Term
Extreme weather events could lead to site and inventory damage
Chronic Risk
Supply Chain Disruption
Long Term
5 6 Motorpoint Group PLC | Annual Report and Accounts 2023
Risk description
Risk of increased taxation as UK Government aims to meet its own climate
change commitments. Key areas relating to Motorpoint include: increased
taxes for energy, vehicle fuel taxes, waste and overall 'carbon tax'
Policy changes deter need for private vehicle ownership
support journey to net zero
leading to loss of market share
Customer finance availability is limited because alternative fuel cars are
more expensive than traditional petrol / diesel cars in relation to earnings
and lenders are not confident over battery degradation
Customers lose confidence in the brand as Motorpoint does not respond
effectively or urgently to public concerns over climate change
Failure to attract and retain talent, if Motorpoint is not perceived to
be a responsible company
Failure to attract and retain investors / pressure from investors /
shareholders if Motorpoint is not perceived to be a responsible company
Extreme weather events could cause significant supply chain disruption
affecting Motorpoint's ability to move cars quickly and efficiently
Extreme weather events could increase competition for land use,
affecting Motorpoint's ability to expand to new sites
Material rise in sea levels leading to changed UK landscape: site
relocation / supply chain alterations required
Dynamic risk scoring
Net zero by
Announced
Stated
2050 (1.5)
policies
2.0-2.5
policies
(>2.5)
STEPS
NZE
APS
Risk
classification
Risk area
Mapping to PRUs
Transition
Policy and Legal
Regulatory and Compliance
Timeframe
Long Term
Technology &
Market Risks
Competition, Market and Customers
Long Term
Medium Term
Availability and Terms of Customer Finance
Reputational
Brand and Reputation
Medium Term
Risks
People and Culture
Competition, Market and Customers
Risk description
Risk of increased taxation as UK Government aims to meet its own climate
change commitments. Key areas relating to Motorpoint include: increased
taxes for energy, vehicle fuel taxes, waste and overall 'carbon tax'
Policy changes deter need for private vehicle ownership
Increased costs from carbon offsetting or needing to enter VCMs to
support journey to net zero
Not meeting increased demand for electric and alternate fuelled vehicles
leading to loss of market share
Customer finance availability is limited because alternative fuel cars are
more expensive than traditional petrol / diesel cars in relation to earnings
and lenders are not confident over battery degradation
Customers lose confidence in the brand as Motorpoint does not respond
effectively or urgently to public concerns over climate change
Failure to attract and retain talent, if Motorpoint is not perceived to
be a responsible company
Failure to attract and retain investors / pressure from investors /
shareholders if Motorpoint is not perceived to be a responsible company
Physical
Risks
Acute Risks
Supply Chain Disruption
Medium Term
Risk of action from climate action groups disrupting the business
Long Term
Extreme weather events could lead to site and inventory damage
Chronic Risk
Supply Chain Disruption
Long Term
Extreme weather events could cause significant supply chain disruption
affecting Motorpoint's ability to move cars quickly and efficiently
Extreme weather events could increase competition for land use,
affecting Motorpoint's ability to expand to new sites
Material rise in sea levels leading to changed UK landscape: site
relocation / supply chain alterations required
Key to risk scoring
High
Medium
Low
Dynamic risk scoring
Net zero by
2050 (1.5)
Announced
policies
2.0-2.5
NZE
APS
Stated
policies
(>2.5)
STEPS
Motorpoint Group PLC | Annual Report and Accounts 2023
57
GovernanceStrategic ReportFinancial Statements F I N A N C I A L R E V I E W
Record
revenues in
a challenging
market
Economic headwinds provided a challenge to profitability, but
record revenues and progress against strategic objectives put
us in a position for sustainable profitable growth.
Group financial
performance headlines
Despite the fall in profitability,
the Group experienced record
revenue, which increased by 8.9%
to £1,440.2m (FY22: £1,322.3m),
with further strong market share
gains. This growth was supported
by new stores, an increase in more
expensive premium models being
sold, and vehicle price inflation.
Gross profit was £85.7m (FY22:
£106.3m). FY22 benefitted from the
record used car inflation. In FY23 we
invested in the customer to ensure
we maintained our price leading
position, in terms of low vehicle
prices and taking a lower finance
commission to offset APR increases.
The latter part of FY23 was also
impacted by retail price reductions
to clear through the well publicised
fall in Electric Vehicle values.
(Loss) / Profit before taxation was
£(0.3)m (FY22: £21.5m), reflecting
the fall from record margins in FY22,
a lower number of units sold due to
a smaller market, increased strategic
investment, losses from new store
openings and higher interest costs.
Despite the lower profitability net
cash improved significantly. Net
cash, excluding lease liabilities, at 31
March 2023 was positive £5.6m (as
set out on page 160) (31 March 2022:
net £21.2m negative, being £7.8m
cash and £29.0m fully drawn down
revolving credit facility).
“ We are pleased to report record revenues
and strong market share gains, whilst
recognising the impact on profitability
due to the challenging economic
environment in the past year.”
Chris Morgan
Chief Financial Officer
5 8 Motorpoint Group PLC | Annual Report and Accounts 2023
Trading performance
The Group has two key revenue
streams, being (i) vehicles sold to
retail customers via the Group's
stores, call centre and digital
channels, and (ii) vehicles sold to
wholesale customers via the Group's
Auction4Cars.com website.
Revenue
Gross profit
Retail
Revenue from retail customers
was up 5.7% to £1,175.7m (FY22:
£1,112.3m), with 57.3k vehicles
sold (FY22: 62.9k). The number of
vehicles sold is a consequence
of the fall in size of our available
market, as our share of this 0–4
year old market increased to
3.5% (FY22: 3.1%). Of the sales,
37.5% were sold online / digitally.
Since re-opening post Covid, the
majority of customers still prefer
the store experience for their
vehicle purchase.
We purchased 5,016 vehicles
directly from consumers and of
these 3,387 were sold through
the retail channel.
£1,440.2m
Total revenues
(FY22: £1,322.3m)
£(0.3)m
(Loss) / Profit before tax
(FY22: £21.5m)
Retail customers
Wholesale customers
Total
FY23
£m
1,175.7
74.5
FY22
£m
1,112.3
91.0
FY23
£m
264.5
11.2
FY22
£m
210.0
15.3
FY23
£m
FY22
£m
1,440.2
1,322.3
85.7
106.3
Gross profit per retail unit for the
financial year was £1,300 (FY22:
£1,446). This reduction reflected
investment in price leadership,
both in terms of vehicle pricing and
lower finance commissions, and the
marking down of Electric Vehicles.
Finance penetration increased to
56% (FY22: 52%). Our APR finance
rates continue to be competitive
despite an increase in October from
8.9% to 9.9%, and in January to
10.9% which reflected the increase
in cost of finance. In FY23 we did
not pass all of the cost of money
increases to customers which
demonstrated our price leadership
but deflated gross margin.
Our 18th (Edinburgh) and 19th
(Coventry) stores opened in the
autumn, and both are trading well.
Ipswich opened in mid-May.
Wholesale
Wholesale units sold via
Auction4Cars.com, which sells
vehicles that have been part
exchanged by retail customers, or
directly purchased from consumers,
was down against last year reflecting
the fall in retail units. 32.4k vehicles
were sold via this purely online
platform (FY22: 34.8k). Gross profit
per wholesale unit was £346 (FY22:
£440). Last year benefitted from the
strong market conditions, and this
year marks a return to more normal
levels (FY21: £344).
Motorpoint Group PLC | Annual Report and Accounts 2023
5 9
GovernanceStrategic ReportFinancial Statements F I N A N C I A L R E V I E W C O N T I N U E D
Operating expenses
Operating expenses decreased from
£81.3m in FY22 to £79.2m. This fall is
despite a planned uplift in strategic
costs with further investments in
digital, technology and new stores.
These incremental costs amounted
to £6.1m (FY22: £1.0m). Despite new
stores and growth of the digital
marketing team, overall headcount
reduced 14.4% to 794, as we focus on
efficiency in stores, preparation and
head office. Energy usage per square
foot fell 7.3% compared to last year.
Overall property costs increased
due to new locations and business
rates (Government relief available
in previous year). Marketing costs
decreased from £18.9m to £14.0m.
The early part of FY22 included
increased marketing costs to support
stores post lockdown.
Other income
Other income relates to the small
gain on the sale and leaseback
transactions during FY23 (no such
transactions in FY22).
Exceptional items
There have been no exceptional
items in the period (FY22: £Nil).
Interest
The Group’s net financial expense
was £7.1m (FY22: £3.5m); the
increase reflected the sharp
rise in cost of borrowing, which
materially impacted the funding
of stock facilities.
Total interest charges on the
stocking facilities were £4.7m
(FY22: £1.5m).
Interest on lease liabilities of 2.0m
(FY22: £1.7m) was incurred in
the year.
Interest on banking facilities was
£0.4m (FY22: £0.3m).
Taxation
The tax charge in the period is
for the amount assessable for UK
corporation tax in the year net of
prior year adjustments and deferred
tax credits. The tax charge has
reduced to £0.3m (FY22: £4.6m),
reflecting lower profitability.
Shares
At 31 March 2023, 90,189,885
ordinary shares were outstanding,
of which 1,686,307 were held in the
Employee Benefit Trust.
Earnings per share
Basic and diluted earnings per
share were both (0.7) pence
(FY22: 18.7 pence).
Dividends
No dividend was paid in the period
(FY22: £Nil) and the Board has not
recommended a dividend (FY22:
£Nil) while it focuses on investment
to drive organic growth.
Capital expenditure
and disposals
Cash purchases of property, plant
and equipment, and intangible
assets was £9.4m (FY22: £6.9m), and
primarily related to bringing the new
stores in Edinburgh and Coventry
up to standard for opening, major
refits at Newport and Burnley stores,
and intangibles relating to software
and website development. All new
properties were leased.
In the year, two sale and leaseback
transactions were successfully
completed. These were the
Stockton-on-Tees store and the
Peterborough preparation centre.
The freeholds were sold gross for
£5.0m and £4.8m and leased backed
at annual rents of £350k and £265k
respectively.
Balance sheet
Net assets remained broadly
consistent with prior year at £38.9m.
Working capital was proactively
managed, with a significant
improvement in the net
cash position.
Non-current assets were £75.2m
(31 March 2022: £59.2m) and made
up of £13.1m of property, plant
and equipment, £58.4m right-of-
use assets and intangible assets
of £3.7m (31 March 2022: £10.9m,
£46.7m, £0.6m and a deferred tax
asset of £1.0m respectively). The
Group currently owns one remaining
freehold plot of land in Glasgow.
All other properties are on leases of
various lengths.
The Group closed the period with
£148.6m of inventory, down from
£228.4m at 31 March 2022. Days in
stock for the period improved to 51
days (FY22: 54 days). Although the
record price inflation experienced
in FY22 was not repeated, used
vehicle prices generally remained
high compared to historic levels.
However, we did experience a
significant fall in Electric Vehicle
prices in the second half of FY23,
which negatively impacted margin.
At 31 March 2023, the Group had
£195.0m (31 March 2022: £195.0m)
of stocking finance facilities
available of which £102.5m (31
March 2022: £147.0m) was drawn.
The Group has available stocking
facilities with Black Horse Limited of
£120.0m, and £75.0m with Lombard
North Central PLC.
The Group also has a £35.0m facility
with Santander UK PLC, split between
£6.0m available as an uncommitted
overdraft and £29.0m available as a
revolving credit facility. This facility
was extended in June 2023 for a
further three years, with the option of
two one-year extensions. At 31 March
2023, £Nil (31 March 2022: £29.0m)
was drawn on this facility.
6 0 Motorpoint Group PLC | Annual Report and Accounts 2023
Capital structure and treasury
The Group's objective when
managing working capital is to
ensure adequate working capital for
all operating activities and liquidity,
including comfortable headroom to
take advantage of opportunities, or
to weather short term downturns.
The Group also aims to operate an
efficient capital structure to achieve
its business plan.
The Group's long term funding
arrangements consist primarily of
the stocking finance facilities with
Black Horse Limited and Lombard
North Central (to a maximum of
£195.0m) and an unsecured loan
facility provided by Santander UK
PLC, split between £6.0m available
as an uncommitted overdraft and
£29.0m available as a revolving
credit facility. This loan facility
with Santander UK PLC has been
extended in June 2023 and will
now expire in June 2026, with the
option of two one-year extensions, if
agreed by both parties.
Chris Morgan
Chief Financial Officer
14 June 2023
Trade and other receivables were
£18.4m (31 March 2022: £13.6m).
This increase related to timing
of commissions due from
Finance providers.
Trade and other payables, inclusive
of the stock financing facilities, have
decreased to £143.8m (31 March
2022: £193.8m) primarily reflecting
a reduction in the drawn down
stocking facilities.
The increase in total lease liabilities
to £63.6m (31 March 2022:
£52.8m) reflects the new store
additions, along with the sale and
leasebacks of Stockton-on-Tees and
Peterborough preparation centre.
Ipswich opened in May 2023.
Cash flow
Cash generated from operations was
£41.3m inflow (FY22: £5.5m outflow).
This reflected the large reduction in
the value of inventory which more
than offset the drop in creditors and
lower operating profit.
Other main items in the cash flow
include: capital expenditure of
£9.4m (FY22: £6.9m), payments
to satisfy future employee share
plan obligations of £0.7m (FY22:
£5.0m), a net repayment of
borrowings (RCF) of £29.0m (FY22:
£Nil), principal lease repayments
of £5.9m (FY22: £4.0m), interest
payments of £7.1m (FY22: £3.5m)
and tax payments of £1.1m (FY22:
£2.3m). Net proceeds of £9.7m
were received for the two sale and
leasebacks.
Motorpoint Group PLC | Annual Report and Accounts 2023
6 1
GovernanceStrategic ReportFinancial Statements R I S K M A N A G E M E N T
Risk management: a key component of governance at
Motorpoint, continuing to build on the strong foundation
of our shared values
Risk management is a key component of Motorpoint’s strategy. We recognise that
effective risk management is essential to protecting our assets, maintaining our
reputation, and ensuring the long term success of the Group. During the year we
continued on our journey to level up risk management across the Group, including
through a new training programme for all team members as well as focus and
oversight from the Group Risk and Compliance Committee. We are committed to
maintaining a strong and effective risk management framework underpinned by
our core values: Happy, Honest, Supportive and Proud.
Approach to risk management
The Board is accountable for
maintaining a policy of continuous
identification and review of the
principal risks facing the Group which
could threaten its future performance
or business model. On behalf of the
Board, the Audit Committee reviews
the effectiveness of Motorpoint’s risk
management processes. Motorpoint’s
risk management strategy is a key
priority for the Group, with last year’s
expansion of the Group Risk and
Compliance Committee being firmly
embedded in the year as a robust risk
management practice.
The Group Risk and Compliance
Committee has delegated
responsibility, from the Audit
Committee, for formally identifying
and assessing the Group’s risks
annually, measuring them against
a defined set of criteria, and
considering the likelihood of
occurrence and potential impact
to the Group. The Group Risk and
Compliance Committee is formed
of the Executive Board, the Head
of Internal Audit and Risk and risk
owning Senior Leadership
Team (‘SLT’) members.
Risk management
Plc Board
• Risk appetite set by the Board
• Overall responsibility for risk
management
Group
strategy and
objectives
Group Risk and
Compliance
Committee
• Delegated responsibility
for risk management
Functional
management
• Day to day risk
management
• Clear escalation routes
in place
Emerging
risks
Principal risk
review
Climate risk
review
Audit
Committee
Reviews
effectiveness of
risk management
Finance
IT
Operations
People
6 2 Motorpoint Group PLC | Annual Report and Accounts 2023
Risk management plays an integral
part in the Group’s planning,
decision making and management
processes. All team members have
a responsibility to ensure they
understand the risks in their area
of activity and that they implement
and operate effective controls to
manage the risks.
The Group’s risk management
approach is summarised as follows:
1.
2.
3.
Identify potential risks
through scanning the external
environment, as well as internal
processes and the Group
strategy.
Assess and assign a value to the
risk to allow it to be prioritised.
Assessing likelihood for gross
(before controls) and net (after
the effect of controls).
Respond through planning
future actions based on the
current risk assessment and the
target risk level (which will be
in line with risk appetite). Risks
can be transferred, terminated,
tolerated or treated.
5.
4. Monitor the development of risks
over time through tracking key
risk indicators.
Report back to the SLT and
Board through the Group Risk
and Compliance Committee to
ensure risks are being managed
in line with risk appetite.
Emerging risks for Motorpoint:
The Group’s risk profile is reported
to the Executive Board for review
and challenge, ahead of final review
and approval by the Board. These
principal risks are then subject to
Board discussion during the course
of the year, as appropriate. To drive
continuous improvement across
the business, the Group Risk and
Compliance Committee monitors the
suitability and adequacy of controls
in place and the ongoing status
of action plans against key risks
quarterly, with a particular focus for
those risks considered to be outside
of the Group’s risk appetite.
Emerging risks
Embracing the findings from the
FRC’s thematic review has been a key
part of Motorpoint’s approach to risk
management in the year, including
the request for more detailed
information about the process for
identifying and assessing emerging
risks. The Motorpoint Group Risk and
Compliance Committee assumes
responsibility for the identification
and assessment of Motorpoint's
emerging risks. Our strategy for
emerging risks is as follows:
Identification
The following activities are
completed to identify potential
emerging risks:
• Horizon scanning – including
the review of construction
and distribution media and
attendance at industry forums by
management, including members
of the Group Risk and Compliance
Committee. Findings and key
messages are discussed as part of
the agenda of the Group Risk and
Compliance Committee.
• External insights – using
specialist third parties to identify
new and changing risks such as
upcoming changes to regulation.
• Management meetings – regular
Head of Internal Audit and
Risk attendance at operational
management meetings to discuss
potential new risks. This is further
supported through monthly
business performance reviews
conducted by the CEO and
CFO to identify risks potentially
materialising in business
performance.
Assessment and reporting
Once identified, emerging risks are
assessed as follows:
•
Identify and map out the core
elements of the emerging risk,
including ownership.
• Hold workshops with risk
owners to assess the level of
the potential risk.
Identify potential mitigating
actions.
•
• Report on emerging risks to
the Audit Committee.
MONITOR
REPORT
Group risk register
review by Risk
and Compliance
Committee
IDENTIFY
Identify risk
ASSESS
Assess gross risk
Identify mitigating
activities/
controls
ASSESS
Assess net
risk
RESPOND
Plan future actions
(if outside risk
appetite)
Document in
risk register
REPORT
Functional risk
register reviewed
by risk owner
(SLT member)
Motorpoint Group PLC | Annual Report and Accounts 2023
6 3
GovernanceStrategic ReportFinancial Statements R I S K M A N A G E M E N T C O N T I N U E D
E M E R G I N G R I S K S F O R M O T O R P O I N T:
Risk and impact
Commentary
1. Used car ownership is replaced
by a subscription based service
which offers convenience and
cost predictability.
We operate a highly flexible approach and business
model. Whilst the Society of Motor Manufacturers and
Traders (‘SMMT’) states that the case for private vehicle
ownership remains strong, we are mindful that a potential
adaptation in the future would not be out of reach for
the business.
Dynamic risk
assessment
Decreasing
2. Motorpoint does not adapt
effectively to infrastructure
requirements for increased demand
for zero emission vehicles (and
other climate related transition
emergent risks).
3. Motorpoint does not adapt to
new technologies surrounding
autonomous vehicle driving.
We are already upgrading infrastructure with increased
charging points, training of our preparation team and
ensuring that customers have all of the information
required over the potential decision to purchase a zero
emission vehicle.
Decreasing
Currently, the technology does not indicate a change
to the ownership or change in the use case for private
vehicles in the UK. As noted in the first emerging risk,
we have a highly adaptable business model and would
consider a range of mitigations should this risk increase in
likelihood.
Decreasing
4. New or existing suppliers choose
to sell used vehicles directly to
end users.
We recognise that the barriers of entry to the market for
some of the largest suppliers are lower than a start-up
entity. However, we are confident that our market share
would continue to grow by continuing to be first for
Choice, Value, Service and Quality for our customers.
Stable
5. An industry disrupter could find a
way to sell a used car from person
A to person B without taking
ownership i.e. a connection charge /
agent mechanism.
We are confident that by continuing to invest in our brand
and offering the best Choice, Value, Service and Quality
for our customers that we would remain a trusted retailer
for used cars.
Stable
Principal risks and uncertainties
Details of our principal risks and uncertainties are shown on the following pages. This includes the key mitigating
activities in place to address them. It is recognised that the Group is exposed to risks wider than those listed.
We disclose those we believe are likely to have the greatest impact on our business at this moment in time and
which have been subject to debate at recent Board or Audit Committee meetings.
How the Board manages risk
The Board and each of its delegated committees operate to a prescribed meeting agenda to ensure that all
relevant risks are identified and addressed as appropriate. Key management information is reviewed to prescribe
operating controls and performance monitoring against the Company’s strategy and business plans.
6 4 Motorpoint Group PLC | Annual Report and Accounts 2023
Changes to principal risks
During FY23 the Group Risk
and Compliance Committee
and the Board continued with
its role of managing the Group
principal risks and where outside
of appetite, setting out and
monitoring mitigations to bring
the risks within appetite.
There were no new emerging
or principal risks in the year
confirmed by the Board and
the Group Risk and Compliance
Committee, although the Board has
recognised that FY22’s ‘economic
vulnerability’ risk required review
and as such has been renamed to
‘business resilience’ in FY23. The
key reason behind the change
was to more accurately describe
the risk faced by the Group; there
are a number of external factors
which could affect the Group wider
than just an economic downturn
or recession. The principal risk to
mitigate is ensuring that the Group
remains resilient in the face of any
external challenge whether that is
an economic downturn, pandemic
or climate related physical risk
crystallisation.
With respect to climate change,
the Group Risk and Compliance
Committee actively manages and
monitors climate change risk within
the scope of its activities. This forms
part of the continued commitment
by the Board and the Committee
to integrate the identification and
ongoing management of climate
risks with the Company’s risk
management processes set out
in the Group Risk Management
Framework. The summary risk
register in respect of climate
change has been set out in our
TCFD disclosure on pages 56 and
57. The register sets out how our
specific climate risks relate to the
principal risks. All of our climate
change risks identified are being
managed within the scope of our
principal risks set out on pages 67
to 72.
The Non-Executive Directors
have particular responsibility
for monitoring the financial
and operating performance, to
ensure that progress is being
made towards our agreed goals.
The Board’s responsibilities
also include assessing the
effectiveness of internal controls
and the management of risk.
The Board’s annual review
of the effectiveness of
risk management and
internal controls
During the year, the Board
considered all strategic matters,
received key performance
information on operating,
financial and compliance matters
and reviewed the results of
corresponding controls and risk
management. The Board received
from the Audit Committee and
the Executive’s Group Risk and
Compliance Committee timely
information and reports on all
relevant aspects of risk and
corresponding controls. We
reviewed all of our key Company
policies and ensured that all
matters of internal control
received adequate Board scrutiny
and debate. At Board meetings,
and informally via the Chair, all
Directors had the opportunity to
raise matters of particular concern
to them. There were no unresolved
concerns in the year.
We concluded that appropriate
controls are in place and
functioning effectively. The
Board considers that the Group’s
systems provide information
which is adequate to permit
the identification of key risks
to its business and the proper
assessment and mitigation of
those risks.
Based on the work of the Audit
and Risk and Compliance
Committees, the Board has
performed a robust assessment
to ensure that: (i) the principal
risks and uncertainties facing
the Group’s business have been
identified and assessed and are
aligned to the Group’s business
strategies; and (ii) appropriate
mitigation is in place.
The Group operates a four lines of
defence model across its internal
controls. These are summarised
as follows:
1st line
Operational and
management controls
• Site management with
appropriate team structure
and dedicated leadership
team reporting line
• Visible, championed values
and expected behaviours
• Application of Company
policies and procedures
• Employee induction, training
and ongoing support
• Executive and leadership
team oversight
2nd line
Risk and compliance
monitoring
• Compliance and Data
Protection Officers
• Operational audit activity
• Risk management
framework
• External specialists
engaged to monitor and
report on compliance
operations
3rd line
Internal audit
• Open culture of challenge
to existing processes and
whistleblowing hotline
• The work of internal audit,
testing first and second
lines of defence
4th line
External assurance
• The work of the external
auditor and other
independent external
assurance providers
Motorpoint Group PLC | Annual Report and Accounts 2023
6 5
GovernanceStrategic ReportFinancial Statements R I S K M A N A G E M E N T C O N T I N U E D
Viability Statement
In accordance with the UK Corporate Governance Code 2018, the Board has assessed the prospects of the Group over a period
in excess of 12 months from the date of signing the Group Finance statements as required by the ‘Going Concern’ provision, by
selecting a three year period to the end of FY26 which takes into account the Group’s current position and the potential impact
of the principal risks and uncertainties as set out on pages 67 to 72.
In making their assessment the Directors considered the Group’s current balance sheet and operational cash flows, the
availability of facilities, and stress testing of the key trading assumptions within the Group’s plan. Three scenarios were
modelled with the outcomes as follows:
Scenario
Base case
Based upon the Group’s most recent approved forecasts.
Sensitised
A severe, plausible, downside scenario including reducing
revenue (26% from base case) and incorporating an above
inflation cost increase of 17% from base case.
Reverse stress test
A scenario created to model the circumstances required
to breach the Group’s banking covenants within the
viability period.
The Board considered the potential impacts in preparing the
stress test. The below scenario was analysed:
Reducing revenue (33% decrease from the base case) and
increasing fixed costs (32% increase over and above the
forecasts in the base case).
Outcome
The Group is not in breach of any financial covenants and is not in
a drawdown position on the RCF at the end of the viability period.
Group is able to meet all forecast obligations as they fall due.
The Group is not in breach of any financial covenants and is not
in a drawdown position on the RCF at the end of the viability
period. The Group is able to meet all forecast obligations as they
fall due.
This scenario is designed to result in a covenant breach within
the assessed viability period.
Management believes the combination of severe downsides to
be remote, and that there are numerous mitigating factors over
and above those built into the reverse stress test modelling,
which the Board would consider to avoid a covenant breach.
The selection of the assumptions for the sensitised case is inherently subjective, and whilst the Board considered these
assumptions to reflect a downside scenario, the future impact of economic downturn, interest rate rises or inflating overhead
costs is impossible to predict with absolute accuracy.
Whilst the same applies to the reverse stress test, we note that this scenario is specifically designed to demonstrate the point
at which the covenants breach during the viability period. The reverse stress test reflects, in the Board’s opinion, a remote
circumstance and numerous mitigating factors could be implemented to avoid a covenant breach in this scenario.
Scenario modelling has been considered throughout the year, and at year end, by management to formulate response options
against moderate or severe downturns in sales volumes, potential margin pressures and possible cost challenges.
Post year end, the Group maintained its available headroom by successfully extending its terms on its revolving credit facility,
which stands at £29.0m. The Group also has an uncommitted overdraft facility of £6.0m, which remains in place and was
undrawn at the year end. Both are until June 2026, with the option to extend for two further one year extensions if both parties
are agreed. With respect to the Group’s stocking facilities these are unchanged from FY22 at £195.0m, which the Board deem
appropriate given current market conditions over the stabilisation of vehicle price inflation.
In the eventuality of a period of prolonged economic downturn resulting in material reductions in sales volume or prices as well
as rising overhead costs, it is possible that the Group would need to negotiate changes to its current banking covenants, but
such an extreme downturn is not currently considered plausible.
The Group continues to consider and monitor further potential mitigation actions it could take to strengthen its cash position
and reduce operating costs in the event of a more severe downside scenario. Such cost reduction and cash preservation
actions would include but are not limited to: reducing spend on specific variable cost lines including marketing and store
trading expenses; team costs, most notably sales commissions; pausing new stock commitments; and extending the period for
which expansionary capital spend, dividends and share buybacks are suspended.
The Group has continued to demonstrate a flexible approach to trading and despite the ongoing constriction in the supply of
nearly new vehicles, which is expected to continue into FY24, we have been able to use our market position to access more
stock to satisfy customer demand, both online and in store.
The Directors have also made use of the post year end trading performance to reconfirm that no stores require an impairment
provision. While only a short period has passed since the year end, this evidence does not suggest the need for further
provisioning was required at year end.
Based on this assessment, the Board confirms it has a reasonable expectation that the Group will be able to continue in
operation and meet its liabilities as they fall due over the period to 31 March 2026.
The Board has determined that the three year period constitutes an appropriate period over which to provide its Viability Statement.
This is the period detailed in our Strategic Plan which we approve each year as part of the strategic review. Whilst the Board has no
reason to believe the Group will not be viable over a longer period, given the inherent uncertainty involved we believe this presents
users of the annual report and accounts with a reasonable degree of confidence while still providing a medium term perspective.
6 6 Motorpoint Group PLC | Annual Report and Accounts 2023
P R I N C I PA L R I S K S
A N D U N C E R TA I N T I E S
Risk and impact
Mitigating controls
Progress made in FY23
Competition, Market and Customers
The UK vehicle market is highly
competitive, and customers
have a broad choice of retailers,
some of which offer comparable
products. The market continues to
see consolidation and innovation,
through which our competitors
have progressed their propositions.
Concurrently, customer
expectations and buying
patterns are evolving, with the
traditional research and purchase
channels becoming ever more
influenced by digital media,
peer recommendations and
convenience. There is also a
market risk identified in respect
of climate change affecting
consumer choice.
Failing to stay ahead of the market
or to adapt to changing customer
behaviours faster than the
competition could undermine our
ability to meet our objectives.
Brand and Reputation
In order to maintain our position
as the UK’s leading omnichannel
used vehicle retailer we must
continue to invest in engaging
brand and digital marketing
campaigns, as well as innovating
the website experience, to ensure
that Motorpoint is the primary
destination for existing and new
customers when starting their
next vehicle purchase journey.
Understanding the motivations
and needs of our current and
future customers is paramount.
We recognise and welcome the
fact that customers are looking
for a trusted brand when buying
a used car. Ensuring we can
communicate at scale our industry
leading proposition is vital to
protect and position, especially
in light of recent new entrants to
the market.
• Continue to offer an omnichannel proposition.
• Continue to compete via our business model’s
consistent focus on Choice, Value, Service and Quality;
each of these cornerstones is built into the business
operation and reporting. For example, customer
satisfaction ratings are used in the calculation of all
bonuses or commissions across the business.
• Significant investment in bringing brand marketing,
digital engineering, data insight capability in house
to raise awareness of Motorpoint and meet customer
needs, including with respect to EVs and climate
change related data, such as emissions produced by
cars that are sold.
Investment in supply chain capacity and capability,
and delivery of productivity improvements to enable
us to compete effectively and allocate resource to
growth driving activity.
•
• Commission regular customer insight reports to track
performance against the market, competitors and
other key indicators.
•
•
Increased our market share
in new areas through two
new stores in the year, and
a further store opened in
May 2023.
Increased brand
awareness through
renewed investment
and re-positioning of
our marketing strategy,
including a new nationwide
TV advert campaign.
• Restructure of our internal
sales reporting structure,
including the appointment
of three regional Retail
Directors helping to drive
the best outcomes for our
customers.
• With a focus on the quality of the vehicles we sell,
• New distinctive website
we launched a major new campaign to reinforce our
brand positioning and raise brand awareness. Our
new strapline will allow us to build on this investment
and create a powerful point of difference versus the
competition.
• Following a strategic review, Motorpoint has taken the
decision to invest significantly in its in house digital
marketing capabilities rather than rely on an agency
model. This improved capability has already started
to deliver tangible results with improved campaign
performance and ROI but also medium term strategic
opportunities.
• New roles in both Product Development and Product
Design have enabled the business to increase the
pace and complexity of new product features released
on the website. With all aspects of the creative,
design and build functions under the Company’s
control, we fully believe we will be able to increase
the opportunities to delight both new and returning
customers.
creative and functionality
mean we can more
effectively communicate
our core value
propositions of Choice,
Value, Service and Quality.
• Customer satisfaction,
measured using the
NPS system, sits at the
heart of our operations
and is subject to regular
scrutiny across all levels
of the business.
• We closely monitor
customer perceptions
using both qualitative and
quantitative feedback
and respond quickly
where possible.
Dynamic Risk Assessment
Increasing
Decreasing
Stable
Motorpoint Group PLC | Annual Report and Accounts 2023
6 7
GovernanceStrategic ReportFinancial Statements P R I N C I PA L R I S K S
A N D U N C E R TA I N T I E S C O N T I N U E D
Risk and impact
Mitigating controls
Progress made in FY23
Brand and Reputation continued
Well documented challenges
around vehicle supply, finance
and the transition to EVs mean we
have to maintain an active dialogue
on these subjects to inform and
reassure our customers and when
appropriate, enable customers to
delve deeper either via our website
or social channels.
With reputation taking years to
build but potentially days to lose,
we recognise that we are always
at risk of unwanted traditional and
social media scrutiny which can
negatively impact our reputation.
• We recognise the
importance of regularly
assessing and testing
the resilience of our
internal and external
communication
protocols in the event
of a ‘reputational PR’
incident. This approach
is continuously under
review and we are also
looking at ensuring we
have a robust business
recovery communication
framework in place.
• New roles in Insight and
Analytics, as well as new
technology partners, have
significantly increased
our capability to unlock
additional growth
opportunities.
Availability and Terms of Customer Finance
• Continue to drive for the best outcome for the
• Customer finance offering
customer across our product range.
• Constantly monitor the market and emerging trends.
• Work in conjunction with our partners to keep
our consumer credit offer relevant, competitive
and viable.
• Where possible reinvest in the quality of the customer
offer, preferring to build its appeal rather than
maximise our commission rates.
held for a significant
portion in the year
despite increases in the
cost of money.
• FCA Consumer Duty
controls review, working
with partners to ensure
our products provide the
best possible outcome for
our customers.
Vehicle sales volumes rely on our
customers being able to access
affordable credit lines. As such, the
Company is exposed to the risk
of lending institutions reducing,
terminating, or materially altering
the terms and conditions on which
they are willing to offer consumer
credit to the Company’s customers.
Commission income generated
by the Company acting as a
regulated credit broker could be
impacted if either the number
of such arrangements reduces,
or the structure and amount of
commissions earned is altered.
6 8 Motorpoint Group PLC | Annual Report and Accounts 2023
Risk and impact
Mitigating controls
Progress made in FY23
Supply Chain Disruption
Sales / profitability and customer
satisfaction could be impacted by
supply chain disruption or loss of
access to key suppliers.
This includes potential effects from
increased risks in this area such as
the continued situation in Ukraine,
which could affect supply in the
motor trade, as well as the impacts
from the historic semiconductor
supply issue.
Potential long term threats in this
area from climate related risks are
also included within the scope of
this risk.
Business Resilience
Failure to withstand the impact of
an event or combination of events
that significantly disrupts all or
a substantial part of the Group’s
sales or operations.
This risk includes the risk of a lack
of business resilience in the event
of: external economic pressures
and inflation causing significant
reduction in UK Consumer
spending, further risks of
economic shutdowns from a new
or resurgent pandemic, economic
downturn due to global conflict
causing material price rises and
energy price increases, climate
related disruption, and material
cost inflation.
• Use of a broad spread of supply channels, within each
• Home delivery and
of which are longstanding relationships.
• Employment of an experienced buying team which is
responsible for maintaining an efficient and effective
supply chain.
• Able to utilise our buying criteria within the scope of our
retail proposition (age and mileage of vehicles) to access
more supply if required.
• Business continuity plans in place for all Motorpoint
physical locations.
• We seek to limit dependency on individual suppliers by
actively managing key supplier relationships.
market share proposition
improved with two new
stores opening in the
year and a further store in
May 2023, ensuring more
target markets are within
a 30 minute drive of a
Motorpoint store.
• Full procurement review
undertaken in the year
highlighting key areas for
the business to be able to
operate more efficiently.
Investigative work
reviewed on developing
the sustainability of our
supply chain.
•
• Negotiation with our
main logistics provider,
strengthening SLAs.
•
Internal control and risk management process in place to
identify and manage risks (including emerging risks) that
may impact the business. This includes horizon scanning
for potential risks and early identification of mitigations
against potential rising costs, falling sales volumes and
business readiness in the event of shutdowns.
• Conservative financial approach – resilience and
flexibility built into the operating model, balanced levels
of structural debt, low risk property portfolio and ‘value
for money’ mentality.
• Continued strength in the
financial position of the
Group through banking
facility which was extended
post year end.
• Successful recruitment of
a skilled COO targeting
greater efficiency, and
sustainable operating
procedures.
• Scenario planning work
completed covering the
business’s readiness for
the impacts of climate
change, including an
anticipated increased
demand for electric
and alternatively fuelled
vehicles.
• Strong and united Board and Management team
in place, experienced managers in key roles and
committed colleagues.
• Strong values – emphasising ’long term thinking’
and ‘acting like owners’ – which Board and senior
management are required to role model, embedded in
the business through recruitment and appraisal, and
colleague communications.
• Strong relationships maintained with key stakeholders
•
(shareholders, colleagues, customers, suppliers,
community).
Investment in the Motorpoint brand and diversity
of routes to market provide flexibility through our
omnichannel approach.
• Business continuity plans in place and kept up to date
for stores, operations and technology.
• Forward planning by ESG Committee and Head of
Sustainability to plan for potential climate related
economic threats from increasing cost of carbon.
Insurance cover in place to cover key risks, where
applicable. Particular focus on cash flow management.
• Expert third party advisers in place (e.g., corporate PR,
•
corporate, banking, legal) to assist.
Dynamic Risk Assessment
Increasing
Decreasing
Stable
Motorpoint Group PLC | Annual Report and Accounts 2023
6 9
GovernanceStrategic ReportFinancial Statements
P R I N C I PA L R I S K S
A N D U N C E R TA I N T I E S C O N T I N U E D
Risk and impact
Mitigating controls
Progress made in FY23
Finance and Treasury
Growth constrained by lack
of access to capital / financial
resource.
• Motorpoint uses a selection of finance facilities to
• Actions continue
fund its operations including a stock financing facility
secured against its retail vehicle stock.
• The Group has an uncommitted £6.0m overdraft
and a £29.0m Revolving Credit Facility in place until
June 2026.
• A treasury policy and set of processes are in place to
govern and control cash flow activities, including the
investment of surplus cash.
• Freight and energy prices are agreed in advance
where applicable, to help mitigate volatility and aid
margin management.
• Forward looking cash flow forecasts and covenant
tests are prepared to ensure that sufficient liquidity
and covenant headroom exists.
IT Systems, Data and Cybersecurity
Operations impacted by failure to
develop technology to support the
strategy, lack of availability due to
cyber attack or other failure, and
reputational damage / fines due to
loss of personal data.
• Formal IT governance processes in place to cover all
aspects of IT management.
• Changes to IT services are managed through
a combination of formal programmes for large
and complex programmes, or bespoke iterative
development methodologies for smaller
scale changes.
• A detailed IT development and security roadmap is in
place, aligned to strategy.
• Comprehensive third party support in place for
relevant technologies.
• Business continuity in place for all major systems and
applications.
• Regular vulnerability scans, annual penetration testing
with systematic methodology to treat identified
threats.
• Business process, authorisation controls and access
to sensitive transactions are kept under review.
70 Motorpoint Group PLC | Annual Report and Accounts 2023
to improve controls
around stock and cash
management including
stock purchasing,
forecasting and use of the
stocking facilities.
• Finance leading the
actions from the
procurement review
undertaken in the year to
ensure relationships with
suppliers are as efficient
and beneficial for the
business as possible, with
a number of opportunities
explored for re-tenders.
• Strong financial position
of the Group through
stocking facilities and
extension of terms on the
revolving credit facility.
• Successful recruitment of
a new and experienced
CTO who joined in
March 2023.
• Significant investment
in digital transformation
is continuing, upgrading
and replacing legacy
systems.
• Ongoing actions in
respect of network
refresh programme,
hardware refresh
programme and
strengthening our change
management controls.
• Strengthened and
renewed the data
protection policy.
• Group wide rollout of data
protection training.
• Recruitment of
Information Security
Manager.
• Third party audits
arranged for FY24 to
confirm cyber and data
privacy resilience.
Risk and impact
Mitigating controls
Progress made in FY23
Regulatory and Compliance
Fines, damages claims, and
reputational damage could be
incurred if we fail to comply
with legislative or regulatory
requirements, including consumer
law, health and safety, employment
law, GDPR and data protection and
the Bribery Act.
• Operational management are responsible for liaising
with the Company Secretary and external advisers to
ensure that new legislation is identified, and relevant
action taken.
• Training on the requirements of the Bribery Act and
anti money laundering policies are in place for all
relevant colleagues and policies are communicated to
all suppliers.
The Company also has various FCA
permissions to carry on a range of
regulated insurance and consumer
credit activities from which it
derives income. There is a risk that
increased regulation or restrictions
on the sales process or nature of
these products would restrict the
income available to the Company.
People and Culture
The success of the business could
be impacted if it fails to attract,
retain and motivate a diverse team
of high calibre colleagues.
Maintaining and evolving the
culture of our business (embodied
in our shared values) is essential
to delivering our strategy
and ensuring the long term
sustainability of our business.
• Whistleblowing procedure and independently
administered helpline which enables colleagues to
raise concerns in confidence.
• Our commitment to becoming a truly amazing place
to work and our application of our Virtuous Circle
is our biggest defence, ensuring we have a highly
engaged, high performing team and attrition is
minimised.
• Our commitment to Diversity, Equity and Inclusion has
been reaffirmed in our SLT strategy and commitments.
• The composition of the Executive Team is regularly
reviewed by the Board to ensure that it is appropriate
to deliver the growth plans of the business.
• The Group’s Remuneration Policy detailed in this
report is designed to ensure that high calibre
executives are attracted and retained. Lock in of
senior management is supported by awards under the
Long Term Incentive Plan.
• Monitoring of key risk indicators such as retention rate
%, employee satisfaction through the b-Heard surveys.
• Continued focus in the year
from the Group Risk and
Compliance Committee
ensuring robust regular
oversight and review of
compliance matters by the
SLT. Continued to conduct
horizon scanning processes
to identify changes in
regulatory expectations.
• Strengthened, renewed and
thoroughly socialised data
protection policy.
• Refreshed and renewed anti
bribery and anti corruption
policies.
• Group wide rollout of risk
and control training.
• Continued Group Board
focus on Board and
Executive Team succession
and talent management.
• The SLT has worked with
an external consultant to
develop our DEI strategy
and have created their
commitments to become
an even more inclusive
place to work.
• New ATS and onboarding
systems have strengthened
our proposition, making
us more attractive to
candidates and provide
a better experience
to applicants.
• Brought forward our living
wage review and increased
the Motorpoint living wage
in line with the Real Living
Wage foundation’s October
2022 review.
• Further discount offered
this year (10%) for the
annual Share scheme
programme to all
employees.
• Set up and launch of
‘Workplace’, our new
engagement platform for
all team members.
Dynamic Risk Assessment
Increasing
Decreasing
Stable
Motorpoint Group PLC | Annual Report and Accounts 2023
7 1
GovernanceStrategic ReportFinancial Statements
P R I N C I PA L R I S K S
A N D U N C E R TA I N T I E S C O N T I N U E D
Risk and impact
Mitigating controls
Progress made in FY23
Health, Safety and Welfare
The risk that accidents, hazards
or incidents are caused by unsafe
practices at work, resulting in
injury or death to customers,
employees or third parties.
• Health and safety training for all new starters,
•
with additional role specific training for
employees in stores.
Incident management processing to ensure
major incidents are dealt with appropriately
and problems are logged and actively
progressed to resolution.
• Undertake risk and control assessments to
monitor compliance.
• Continually monitor our mandatory regulatory
•
training to ensure that all colleagues are
kept informed.
Incidents are reported online, via a reporting
tool. Line management deal with minor
incidents. Major incidents are escalated to the
SLT who are supported by third party expertise.
• Risk assessment is managed in the following
ways: line management in the stores have a
number of online risk assessment checklists
to verify the relevant controls are in place; and
higher level risk assessments are carried out on
workshop activities by an expert third party –
including ‘Hand Arm Vibration’ and ‘Control of
Substances Hazardous to Health’.
• A separate, expert third party also carries out
higher level risk assessments covering store
transport safety, gates and barriers, as well as
fire risk assessments.
•
Implemented new expert third
party relationship to assist with
managing our Health & Safety
Risk, working alongside existing
third party relationships.
• Ongoing actions from six
monthly insurance inspections
of the Lifting Operations and
Lifting Equipment Regulations
and periodic inspection and
maintenance under Provision
and Use of Work Equipment
Regulations.
• Ongoing actions from incident
reporting included within
monthly Board submissions and
also discussed within monthly
Operations Manager Health and
Safety Governance including
deep dive into causations, issues
arising / lessons learnt and best
fit solutions.
• Ongoing actions from
strengthened and enhanced
Fire Risk Assessment conducted
across all stores in FY23.
Dynamic Risk Assessment
Increasing
Decreasing
Stable
7 2 Motorpoint Group PLC | Annual Report and Accounts 2023
N O N - F I N A N C I A L
I N F O R M AT I O N S TAT E M E N T
In accordance with section 414CB of the Companies Act 2006, the sections cross referred to in
the table below are incorporated into this non-financial information statement.
Environmental matters
Company’s employees
Social matters
Stakeholder
engagement:
community
and environment
Streamlined Energy and
Carbon Reporting
36 - 39
31
At a glance
Our operating model
begins with our team
Our core values
Our stakeholders
Energy efficiency
actions
Going green
34 - 39
Winning culture
Supporting employee
wellbeing
35
46 - 47
In addition, our talent team are
working on business projects focused
on improving the sustainability of
the business and our impact on the
environment.
Related principal risk:
Brand and Reputation;
Regulatory
and Compliance
67, 71
The Company has various
employee centric policies and
guidance including: Employee
Handbook; HR Policies including
equal opportunities; anti bullying
and harassment; whistleblowing;
enhanced maternity leave; paternity
leave; health, safety and welfare;
data protection; and privacy.
41
4 - 5
17
30
46
Investing in our
communities
44 - 45
Supporting great causes
44 - 45
Anti corruption and anti
bribery matters
48
Related principal risk:
Brand and Reputation;
Economic Vulnerability;
Regulatory and
Compliance
67, 70, 71
Respect for human rights
Real Living Wage
Modern slavery
Treating customers fairly
32
49
48
67, 71
48
71
Related principal risk:
People and Culture;
IT Systems, Data and
Cybersecurity
70, 71
Related principal risk:
Brand and Reputation;
Regulatory and
Compliance; People
and Culture
Anti corruption
Whistleblowing hotline,
anti corruption and
anti bribery
Related principal risk:
Regulatory and
Compliance
Investment case
6 - 7
Non-financial KPIs
23
Business model
8
Motorpoint Group PLC | Annual Report and Accounts 2023
73
GovernanceStrategic ReportFinancial Statements 74
Motorpoint Group PLC | Annual Report and Accounts 2023
Governance
76
78
79
82
86
90
92
94
102
109
114
Board of Directors
Introduction to governance
Corporate governance report
Audit Committee report
Nomination Committee report
ESG Committee report
Remuneration Committee report
Remuneration policy
Annual report on remuneration
Directors’ report
Statement of directors’ responsibilities
Motorpoint Group PLC | Annual Report and Accounts 2023
7 5
Financial StatementsStrategic ReportGovernance
B O A R D O F D I R E C T O R S
Experienced
team
delivering
long term
value
A P P O I N T M E N T
B A C K G R O U N D A N D C A R E E R
E X T E R N A L R O L E S
76 Motorpoint Group PLC | Annual Report and Accounts 2023
John Walden
Independent Non-Executive
Chair and Chair of the
Nomination Committee
Mark Carpenter
Chief Executive Officer
N
N
E
January 2022
April 2016
Mark was appointed as Chief
Executive Officer in May 2013
following two years as CFO,
and has almost 20 years’
experience in motor retail.
Mark was previously Finance
Director of Sytner Group
Limited from 2005 to 2010.
Prior to this, Mark was with
Andersen, where he qualified
as a Chartered Accountant.
None
John has held prior roles including
chair of Naked Wines plc, chair
of the Jersey parent company of
Holland & Barrett International, and
non-executive director of Celine
Jersey Topco Ltd, the Jersey holding
company of Debenhams. John was
also an executive director at FTD
Companies. John served as CEO
of Argos and its parent company
Home Retail Group plc, and has held
several senior roles with Best Buy
Co. including EVP and president of
the internet division. John has been
a driving force in omnichannel and
consumer driven retailing, as well as
leading digital and transformational
change, both in the UK and US.
Since March 2021, John has been
the chair of SnowFox Topco Ltd,
the Guernsey topco responsible
for Yo Sushi. John is also the
Founder of Inversion LLC. In
March 2023, John was appointed
as Independent Non-Executive
Director and Non-Executive
Chair Designate of ScS Group
Plc, and will take on the role of
Non-Executive Chair of ScS on
30 November 2023.
A P P O I N T M E N T
B A C K G R O U N D A N D C A R E E R
E X T E R N A L R O L E S
Committee membership key
A Audit
Committee
R Remuneration
Committee
N Nomination
Committee
E ESG
Committee
Committee
Chair
Chris Morgan
Chief Financial Officer
Mary McNamara
Senior Independent Non-
Executive Director and Chair of
the Remuneration Committee
Adele Cooper
Independent
Non-Executive Director
Keith Mansfield
Independent Non-Executive
Director and Chair of the
Audit Committee
E
A
R
N
E
A
R
N
E
A
R
N
E
January 2021
Chris was appointed Chief
Financial Officer in January
2021, and is also the Company
Secretary for Motorpoint
Group plc. Chris was formerly
group finance director at
Speedy Hire Plc. Prior to this
Chris held senior finance
leadership positions at Go
Outdoors and Tesco, where
he was latterly the finance
director for the Czech
Republic and Slovakia. Chris
is a Fellow of the Institute of
Chartered Accountants in
England and Wales.
None
May 2016 (appointed as
Senior Independent Director
in October 2016)
Mary was CEO of the
commercial division and
board director of the Banking
Division at Close Brothers
Group Plc. She spent 17
years with GE in a number of
leadership roles, including
CEO of the European Fleet
Services business. Mary has
also spent time with Skandia
and 14 years at Harrods.
Chair of the Remuneration
Committee and member
of the Nomination and
Governance Committee of
OSB Group plc.
March 2020
May 2020
Adele has extensive marketing
and senior leadership
experience, having worked at
some of the world’s leading
technology companies,
most recently at Pinterest
from June 2015 to December
2019. While at Pinterest,
Adele was responsible for the
UK and Ireland, overseeing
strategic, commercial and
operational management.
Prior to this, Adele has been
with Facebook and Google in
a lead global relationship role
and a variety of regional and
global lead roles in marketing
and operations.
Adele is Chief Revenue
Officer at &Open and a Non-
Executive director of Conjura
Ireland Limited.
Keith was appointed to the
Board of Motorpoint Group
Plc as Independent Non-
Executive Director in May
2020. A Chartered Accountant
by background, Keith brings
extensive accountancy
experience, having worked
at PwC for over 30 years,
during which time he served
as Chair of PwC in London
responsible for assurance, tax
and advisory services. As a
partner for 22 years, he has led
services to public and private
companies across a range of
industry sectors.
Keith is the Senior Independent
Director of Tritax Eurobox
plc, where he chairs the Audit
Committee and is a member of
the Management Engagement
Committee and Nomination
Committee. Keith is also the
Senior Independent Director and
Chair of the Audit Committee of
Digital 9 Infrastructure plc, Chair
of Albemarle Fairoaks Airport
Limited and a Non-Executive
director on the boards of Martins
Investment Holdings Ltd, Martins
Development Holdings Ltd and
Martins Financial Holdings Ltd.
Motorpoint Group PLC | Annual Report and Accounts 2023
7 7
Financial StatementsStrategic ReportGovernance I N T R O D U C T I O N T O G O V E R N A N C E
Chair’s introduction
D E A R S H A R E H O L D E R
I am delighted to present my
Corporate Governance review for
Motorpoint for FY23. The aim of this
report is to explain Motorpoint’s
governance framework and outline
how it was applied on a practical
basis in the year under review.
The past year has seen the Company
have to contend with a number
of economic headwinds, with the
cost of living crisis and supply
chain issues creating a number
of challenges. As a Board, we are
committed to delivering sustainable
and profitable growth, and remain
committed to the delivery of our
strategy that is set out earlier in this
report. Despite the challenges to
profitability, we have made good
progress against our strategic
objectives, and are continuing to
increase revenues and market share.
As a Board, we are conscious
that we are accountable to all our
shareholders and must have regard
to other stakeholders such as
employees, customers, suppliers
and the environment. We maintain
an active dialogue with shareholders
throughout the year and listen to
views of representatives of investors
and financial institutions. We also
welcome the opportunity to answer
shareholders’ questions at our 2023
Annual General Meeting (‘AGM’).
ESG
We are committed to an ESG
agenda which aims to exceed our
stakeholders’ expectations. The past
year has continued to accelerate
expectations for all companies to
make good progress in this area, and
our new ESG Committee has met
twice to develop, implement and
monitor our ESG strategy, as well
as oversee and support stakeholder
engagement on ESG matters. We
look forward to further developing
the Committee’s impact in the
coming year.
Board changes
There have been no changes to
the membership of the Board
over the last year.
Biographies for each of the current
Directors are set out on pages
76 and 77. The progress in talent
development and diversity can be
found on page 87.
“ T h e B o a rd i s c o m m i t te d
to d e l i ve r i n g o u r
s t ra te g i c p l a n
u n d e r p i n n e d w i t h
s t ro n g g ove r n a n c e .”
John Walden
Chair
Compliance statements
Throughout the year ended 31 March
2023, the Company has complied
with all the provisions as set out in
the 2018 Corporate Governance
Code (the ‘2018 Code’) (a copy of
which is available on the Financial
Reporting Council’s website at
www.frc.org.uk) except for two.
Firstly, with respect to the CEO’s
pension contributions. As set out in
the Remuneration Committee report,
under the new remuneration policy
the CEO’s pension contributions
will reduce from 10% to 3% of salary
following the 2023 AGM, to be
aligned with that of the workforce
and comply with the 2018 Code.
Secondly, with respect to consulting
directly with the workforce on
remuneration matters. In the coming
year we will review our approach
to engaging with employees on
remuneration matters and in
particular to explain how the pay for
senior executives aligns to the pay
practices for the workforce generally.
Our effectiveness
Every year we perform a review of
the effectiveness of the Board. In
early 2023, we commissioned an
external Board effectiveness review
with participation from all members
of the Board. The findings show
that the work we do as a Board and
in our committees continues to be
effective. Our review also confirmed
that our focus in the coming year
will be employee engagement,
as well as succession planning
for the Board and executive
leadership and the implementation
of our revised diversity, equity and
inclusion strategy.
Board priorities
Our priorities for next year are very
much focused around continuing
to build sustainable and profitable
growth in the Group, and delivering
on our strategic plan underpinned
with strong governance.
John Walden
Chair
14 June 2023
78 Motorpoint Group PLC | Annual Report and Accounts 2023
C O R P O R AT E
G O V E R N A N C E R E P O R T
Board leadership and purpose
The role of the Board
The Board sets the Company’s
strategic aims and ensures that the
necessary resources are in place
to allow the Company’s objectives
to be met, in a way that enables
sustainable long term growth. It
is also responsible for corporate
governance and the overall financial
performance of the Group. The
Board establishes the Company’s
culture, values and ethics and it
is important that it models the
required behaviours and standards,
with all Directors devoting sufficient
time and attention to their role.
The current Board composition is
the Chair, three independent Non-
Executive Directors (including a
Senior Non-Executive Director) and
two Executive Directors.
Roles and responsibilities
The Chair’s role
The Chair’s primary role is the
leadership of the Board. They
ensure that the Directors receive
accurate, timely and clear
information and are responsible
for cultivating a boardroom culture
of honesty and openness, which
encourages debate, challenges
where appropriate, and enables the
Non-Executive Directors to make
an effective contribution. The Chair
sets the Board’s agenda and ensures
sufficient time is allocated for the
discussion of all agenda items. The
Chair also consults with the Non-
Executive Directors, in particular
the Senior Independent Director, on
matters of corporate governance
and ensures all Directors are made
aware of any major shareholders’
issues and concerns.
The Board is satisfied that the
Chair fulfils their responsibilities in
enabling the Board to make
sound decisions.
Chief Executive Officer’s role
The Chief Executive Officer (‘CEO’)
is responsible for the day to day
running of the Group’s business,
including the development and
implementation of strategy and
decisions made by the Board, as
well as the operational management
of the Group.
Chief Financial Officer’s role
The Chief Financial Officer (‘CFO’) is
responsible for the Group’s financial
activities, including control, planning
and reporting, and also contributes
to the broader management of the
Group’s business. The CFO supports
the CEO with the development,
implementation and tracking of the
Group’s strategy.
Senior Independent Director’s role
The Senior Independent Director
acts as a sounding board to the Chair
and serves as an intermediary for
the other Directors when necessary.
The Senior Independent Director is
available to shareholders to assist
with addressing concerns that may
arise and meets with the other Non-
Executive Directors (excluding the
Chair) at least once a year to review
the performance of the Chair.
The Senior Independent Director
also meets with Non-Executive
Directors without the Chair present
at least annually and conducts
the annual appraisal of the Chair’s
performance, providing feedback to
the Chair on the appraisal outputs.
Independent
Non-Executive Directors
The Non-Executive Directors bring
independence, and a broad mix
of business skills, knowledge and
experience to the Board. They
provide an external perspective
to Board discussions and are
responsible for the scrutiny of the
executive management on behalf
of shareholders. The Non-Executive
Directors constructively challenge
Board discussions and help develop
proposals on strategy. At least
annually, the independent Directors
meet without the presence of the
Executive Directors.
Non-Executive Directors monitor
the reporting of performance
and ensure that the Company is
operating within the governance
and risk framework approved by
the Board.
The Company Secretary’s role
The Company Secretary ensures
that effective communication
flows between the Board and its
committees and between senior
management and the Non-Executive
Directors. The Company Secretary
is responsible for ensuring that
the Board operates in accordance
with the Company’s corporate
governance framework.
The appointment and removal of the
Company Secretary is a matter for
the whole Board.
Matters reserved for the Board
To retain control of key decisions and
ensure that there is a clear division
of responsibility between the Board
and the day to day running of the
business, the Board has a formal
schedule of matters reserved for its
decision. These reserved matters
include financial reporting, investment
appraisal and risk management. The
matters were reviewed by the Board in
July 2022 to ensure they were aligned
with the 2018 Code.
Board committees
The Board operates several
committees to support it in carrying
out its duties. Further information
about the work carried out by these
committees can be found on the
following pages:
• Audit Committee (p.82)
• Nominations Committee (p.86)
• ESG Committee (p.90)
• Remuneration Committee (p.92)
Board focus during the year
The Board holds a number of
scheduled meetings each year, plus
regular strategy sessions which are
usually held off site. The meetings
were held in a hybrid format this
year, with some attended in person
and others held virtually.
Key areas of focus during the
year were:
Strategy
• The Board reviewed progress
against the Strategic Plan regularly
during the course of the year
Investor relations and
communications
•
• Strategic growth opportunities
such as the opening of new
stores, technology and marketing
investment, efficiencies and
exploration of other growth
opportunities
Motorpoint Group PLC | Annual Report and Accounts 2023
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Financial StatementsStrategic ReportGovernance C O R P O R AT E G O V E R N A N C E R E P O R T C O N T I N U E D
Financial
• Approved the full year results
announcement and the annual
report for the 2023 financial year.
In doing so, the Board considers
that the annual report, taken as
a whole, is fair, balanced and
understandable, and provides
the information necessary for
shareholders to assess the
Group’s and Company’s position,
performance, business model
and strategy
• Continued suspension of the
payment of any dividends
• Half year results, full year results
and trading updates
• Review of Group cash position
and forecasting, and post year
end the approval of the banking
extension through to June 2026
• Monthly performance reporting
and review
Internal control and risk
management
• Performed the annual review
of the effectiveness of internal
control, risk identification
and mitigation
• Carried out a robust assessment
of the emerging and principal
risks facing the Group. Further
information on these principal
risks, the procedures in place
to identify emerging risks and
how these are being managed or
mitigated can be found on pages
62 to 72
• Approved the Viability Statement
as disclosed in the FY23 annual
report, which sets out that the
Group will be able to continue in
operation and meet its liabilities
as they fall due over the next
three years. The Board deemed
a three year period to the end
of FY26 would be appropriate,
taking into account the Group’s
current position and the potential
impact of the principal risks and
uncertainties
• Considered and approved the
adoption of the going concern
basis of accounting in preparing
the half and full year results
• Approved updates to the
treasury policy
People, talent and culture
• Succession planning and talent
development for all senior roles
• Reviewed the results of the
engagement survey
• Ensured safe and comfortable
working environments
•
• Reviewed the staffing structure
and implemented associated
rationalisation, resulting in 20
redundant posts
Implemented a Restricted Share
Award for eligible staff
Implemented an SAYE Share
Plan for eligible staff for the
three year period commencing
February 2023
•
Governance, compliance
and ethics
• Approved AGM business such as
the Notice of Meeting and related
ancillaries
• Commissioned an external Board
evaluation, reviewed the report
and recommendations and
agreed an action plan
• Assessed the independence
of all Directors
• Reviewed and updated the
Terms of Reference for the
Audit Committee, Remuneration
Committee and ESG Committee
Board independence and
appointment terms
The Board has reviewed the
independence of each Non-
Executive Director and considers
each of them to be independent
of management and free from
business or other relationships that
could interfere with the exercise
of independent judgement. The
Company meets the requirement
under Provision 11 of the 2018
Code that at least half of the Board,
excluding the Chair, are Non-
Executive Directors whom the Board
considers to be independent. The
Board believes that any shares in
the Company held personally by
a member of the Board serves to
align their interests with those of
the shareholders.
The CEO, Mark Carpenter, owns
approximately 9.8% of the shares of
the Company. Mark Carpenter was
considered by his fellow Directors
to be independent in character and
judgement in performing his duties
during the periods of their tenure in
the year. The Board is fully confident
that, in the very unlikely event of a
conflict emerging between Mark
Carpenter’s duties as a Director and
his interests as a shareholder, he
would absent himself from the Board
discussions in question (and the
Board would ensure that he does so).
The terms and conditions of
appointment of the Non-Executive
Directors are contained within their
Letters of Appointment. The terms
of appointment for the Directors
confirm they are expected to devote
such time as necessary for the
proper performance of their duties.
The Board reviews and approves as
necessary any additional external
appointments the Directors may
look to obtain. During FY23, John
Walden was appointed to the board
of ScS Group Plc, and will take on
the role of Non-Executive Chair of
ScS on 30 November 2023. Prior to
this appointment, consideration was
given to the potential impact this
would have on his role as Chair of
Motorpoint Group plc, and whether
there was a risk of overboarding
in line with current governance
practice. It was deemed that there
was no risk of overboarding and
no concerns were identified with
this appointment.
The CEO and CFO do not currently
have a non-executive directorship
on any other listed company board.
Board meetings
The Board met regularly to
discharge its duties effectively.
Directors are provided with meeting
papers approximately one week
in advance of each Board or
committee meeting. Members of
the Senior Leadership Team are
regularly invited to attend Board
meetings to present on their specific
area of responsibility.
8 0 Motorpoint Group PLC | Annual Report and Accounts 2023
Board and committee attendance FY23
The Board has regular scheduled meetings throughout the year. Directors’
attendance at Board and committee meetings during the year is outlined below:
Director
Mark Carpenter
Chris Morgan
John Walden
Mary McNamara
Keith Mansfield
Adele Cooper
Board
(9 meetings)
Audit
Committee (3)
Nomination
Committee (1)
Remuneration
Committee (6)
ESG
Committee (2)
9
9
9
9
9
9
–
–
–
3
3
3
1
–
1
1
1
1
–
–
–
6
6
6
2
2
–
2
2
2
Annual General Meeting
The 2023 AGM will be held on 26 July 2023.
The Notice convening the 2023 AGM
will be circulated to shareholders
separately, along with details on
how shareholders can still raise
questions to the Board in advance.
We will ensure that shareholders are
kept informed using the Notice of
Meeting, our website, and relevant
regulatory announcements in
due course.
Conflicts of interest
The Company’s Articles of
Association, in line with the
Companies Act 2006, allow the
Board to authorise any potential
conflicts of interest that may arise
and impose limits or conditions as
appropriate. The Board has a formal
process for the Directors to disclose
any conflicts of interest and any
decision of the Board to authorise a
conflict of interest is only effective
if it is agreed without the conflicted
Director(s) voting or without their
votes being counted. In making
such a decision, the Directors must
act in a way they consider in good
faith will be most likely to promote
the success of the Group.
Independent advice
The Directors may take independent
professional advice, if necessary, at
the Company’s expense.
Board training and development
Directors are continually updated on
the Group’s business, the markets
in which we operate and changes
to the competitive and regulatory
environments through presentations
and briefings to the Board from
Executive Directors and the Senior
Leadership Team.
Directors received briefings from
the Company Secretary during
the year on governance and
compliance matters and relevant
legislative changes.
Relations with shareholders
All shareholders have access to
the Chair and the Senior Non-
Executive Independent Director,
who are available to discuss any
questions which shareholders may
have in relation to the running of
the Company.
The Board recognises the need
to ensure that all Directors are
fully aware of the views of major
shareholders. Copies of all analysts’
research relating to the Company
are circulated to Directors upon
publication. The Company receives
a monthly Investor Relations report
which includes an analysis of the
Company’s shareholder register.
John Walden
Chair
14 June 2023
Motorpoint Group PLC | Annual Report and Accounts 2023
8 1
Financial StatementsStrategic ReportGovernance A U D I T C O M M I T T E E R E P O R T
Audit Committee
Chair’s statement
C O M M I T T E E
G O V E R N A N C E
Committee membership
During the year the
Committee comprised:
• Keith Mansfield (Chair)
• Adele Cooper
• Mary McNamara
The Committee met three
times during the year and
attendance is set out in the
table on page 81.
D E A R S H A R E H O L D E R
I am pleased to present the report
of the Audit Committee (the
‘Committee’) for FY23. The principal
purpose of this report is to look
back over the financial year ended
31 March 2023, and describe the
Committee’s responsibilities and
activities during the year.
The Committee fulfils an important
oversight role, monitoring the
effectiveness of the Group’s
system of internal control and
risk management framework and
reviewing the integrity of the
Group’s financial reporting. The key
objectives of the Committee are to
review and report to the Board and
shareholders on the Group’s financial
reporting, internal control and risk
management systems, and on the
independence and effectiveness of
the external auditor.
“ M a n a g e m e n t p ro c e s s e s
h ave c o n t i n u e d to
s t re n g t h e n i n t h e
ye a r t h ro u g h s t ro n g
re c r u i t m e n t , a u to m a t i o n
a n d t h e c o m p l e t i o n o f
t h e G ro u p’s f i r s t fo r m a l
i n te r n a l a u d i t p l a n – t h i s
i s a m a j o r s te p fo r wa rd
i n m a n a g i n g r i s k a n d
i n te r n a l c o n t ro l fo r
t h e G ro u p.”
Keith Mansfield
Audit Committee Chair
Risk management and internal
control continues to be a priority
topic for the Group, ensuring
Motorpoint can respond with
pace and robustly to economic
uncertainty, requirement for
digital transformation and an
extremely competitive marketplace.
Management processes have
continued to strengthen in the
year through strong recruitment,
automation and the completion of
the Group’s first formal internal audit
plan – this is a major step forward in
managing risk and internal control
for the Group.
The Audit Committee has reviewed
the status of the Group’s plans for
its first audit and assurance policy.
Good progress has been made on
the planning activity which includes
assurance mapping and gathering
the views from key stakeholders. A
draft policy is expected in FY24 with
a thorough review required before
final publication.
I would like to thank my colleagues
in the Committee for their valued
contributions during this year
and also extend my thanks to our
colleagues within the business
who have continued to embrace
the Group’s shared values, whilst
also striving for greater efficiency
and leaner ways of working in the
context of an ever more competitive
marketplace and increased
economic uncertainty.
8 2 Motorpoint Group PLC | Annual Report and Accounts 2023
• Review the adequacy and security
of the Company’s arrangements
for its employees, contractors and
external parties to raise concerns,
in confidence, about possible
wrongdoing in financial reporting
or other matters
• Review the effectiveness of risk
management and internal control
policies in relation to ESG matters
• Monitor the statutory audit of
the annual and the consolidated
financial statements
• Review significant financial
reporting issues
• Recommend to the Board the
reappointment of the external
auditor and approve their
remuneration and terms
of engagement
• Monitor and review the external
auditor’s independence and
objectivity and the effectiveness
of the external audit process,
including considering
relevant UK professional and
regulatory requirements and
the appropriateness of the
provision by the auditors of
non-audit services
The terms of reference authorise the
Committee to obtain independent
legal or other professional advice at
the Company’s expense.
Committee composition
and membership
The Committee currently comprises
three independent Non-Executive
Directors.
During the year, the following
members served on the Committee:
• Keith Mansfield (Chair)
• Adele Cooper
• Mary McNamara
The Board believes that the
members of the Committee as a
whole have competence relevant
to the sector in which the Group
operates, gained from their
respective external roles, previous
and present. Biographical details of
Committee members are set out on
page 77.
In particular, the Board has
identified me as the member of
the Committee having recent and
relevant financial experience for the
purposes of the 2018 Code. I have
a wealth of accounting experience
from my previous roles, having
worked at PricewaterhouseCoopers
LLP (‘PwC’) for 30 years.
At the invitation of the Chair of
the Committee, the CEO and CFO
attended all meetings during the
year in order to maintain effective
and open communications.
The external auditors, PwC, attend
meetings of the Committee and
have direct access to the Committee
should they wish to raise any
concerns outside of the formal
Committee meetings.
Similarly, the Head of Internal Audit
attends for the specific portion of
Committee meetings pertaining to
internal audit, and has direct access
to the Committee should internal
audit need to raise any concerns
outside of the formal context.
Role of the Committee
The role and responsibilities of the
Committee are set out in its terms of
reference which were updated in FY23
and are available on the Company’s
website motorpointplc.com. The key
objectives of the Committee are to
review and report to the Board and
shareholders on the Group’s financial
reporting, internal control and risk
management systems, and on the
independence and effectiveness of
the external auditor.
Further details on the responsibilities
of the Committee are listed below:
• Monitor the integrity of
the financial statements of
the Company, including its
annual and half yearly reports,
preliminary announcements and
any other formal statements
relating to its financial
performance, and review and
report to the Board on significant
financial reporting issues
and judgements which those
statements contain having regard
to matters communicated to it by
the auditor
• Review the content of the annual
report and accounts and advise
the Board on whether, taken as
a whole, it is fair, balanced, and
understandable and provides
the information necessary
for shareholders to assess
the Company’s performance,
business model and strategy and
whether it informs the Board’s
statement in the annual report
on these matters that is required
under the Code
• Keep under review the Company’s
internal financial controls systems
that identify, assess, manage
and monitor financial risks, and
other internal control and risk
management systems
• Review and approve the
statements to be included in the
annual report concerning internal
control, risk management,
including the assessment of
principal risks and emerging
risks, Viability Statement and
going concern
• Review reports from the internal
audit function
Motorpoint Group PLC | Annual Report and Accounts 2023
8 3
Financial StatementsStrategic ReportGovernance A U D I T C O M M I T T E E R E P O R T C O N T I N U E D
Activities
The Committee reviewed the
following items since the last report:
• Annual Report and Accounts
to 31 March 2023 and half year
results to 30 September 2022
• Chair met and had discussions
with PwC as part of the
audit process
• External audit plan and review
of effectiveness
• Non-audit services policy
(‘NAS’) and reached a general
presumption that PwC is not
best placed to offer NAS, so as to
safeguard their independence
• The Group’s prospects (going
concern and viability)
• Tax and treasury policy
• Corporate risk assessment
including review of the key risks,
risk management activities and
emerging risks
• Findings from the external auditor
on the FY23 year end audit
• Findings from the work of
Internal Audit
Financial reporting
The primary role of the Committee
in relation to financial reporting is
to review with both management
and the external auditor, and report
to the Board the appropriateness
of the annual financial statements,
considering amongst other matters:
• Whether the annual report, taken
as a whole, is fair, balanced and
understandable, and provides
the information necessary
for shareholders to assess
the Company’s performance,
business model and strategy.
The statement incorporating the
conclusion of this assessment is
included later in this section
• The application of significant
accounting policies and any
changes to them
• The methods used to account
for significant or unusual
transactions where different
approaches are possible
• Whether the company has
adopted appropriate accounting
policies and made appropriate
estimates and judgements, taking
into account the external auditor’s
views on the financial statements
• The clarity and completeness
of disclosures in the financial
statements and the context in
which statements are made
• All material information presented
with the financial statements,
including the strategic report
and the corporate governance
statements relating to the audit
and to risk management
In addition to the above, the
Committee supports the Board in
completing its assessment on the
adoption of the going concern
basis of preparing the financial
statements. Furthermore, as part
of the Committee’s responsibility
to provide advice to the Board on
the long term Viability Statement,
the Committee performed a
robust review of the process and
underlying assessment of the
Group’s longer term prospects
made by management.
Significant matters
considered by the Committee
in relation to the financial
statements
In the preparation and final approval
of the financial statements,
the Committee discussed with
management the key sources of
estimation and critical accounting
judgements. The Committee
considered the following significant
issues in relation to the FY23
financial statements:
•
Inventory Valuation: Inventory is
valued at the lower of cost and
net realisable value. Margins
on vehicles increased in FY22
due to a global shortage of
semiconductors resulting in a
reduction of the supply of new
vehicles; this in turn pushed
demand, and therefore price,
up for used cars. There is a
risk that the solving of supply
shortages could lead to selling
prices reducing below cost and
so require a provision against
inventory cost. Further, in the
second half of FY23 the Group
experienced a considerable drop
in the value of Electric Vehicles.
A provision is included based on
historical and forecast sales and
potential net realisable value. The
Committee is comfortable based
on performance subsequent to
the year end that the level of
inventory provision is appropriate.
• Appropriate capitalisation of
IT development costs in line
with the criteria set out in IAS
38; in particular as this year the
amounts increased, following the
acceleration of technical strategic
investment. The Committee
is satisfied based on the
substantiation of the requirements
of IAS 38 that the appropriate
accounting treatment was applied.
Annual report
The Committee has undertaken
a review and assessment of the
annual report in order to determine
whether it can advise the Board that,
taken as a whole, the annual report
is fair, balanced and understandable,
and provides shareholders with the
information they need to assess the
Company’s position, performance,
business model and strategy.
In doing this the Committee
considered the following:
• The description of the business is
consistent with the Committee’s
own understanding
• The narrative of the strategic
report fairly reflects the
performance of the Group over
the period reported on
• That there is a clear and well
articulated link between all areas
of disclosure including going
concern and viability
• The findings from the external
auditor as part of the FY23 year
end audit
All relevant issues relating to the
Annual Report were fully discussed
at the Committee meeting in
June 2023.
The Committee has concluded that
the Annual Report, taken as a whole,
is fair, balanced and understandable
and that it can advise the Board as
required by the 2018 Code and other
relevant rules and regulations.
8 4 Motorpoint Group PLC | Annual Report and Accounts 2023
Going concern and Viability
Statement
The Company is required to include
statements in its annual report
relating to going concern and
viability. The Committee reviewed
and discussed with management
and concluded that the financial
statements can be prepared on a
going concern basis and that there
is a reasonable expectation that
the Group will be able to continue
in operation and meet its liabilities
as they fall due over the next
three years.
The Directors assessed the
prospects of the Group over a three
year period, which reflects the
budget and planning cycle adopted
by the Group. The assessment of the
Group’s prospects, together with the
Group’s going concern and Viability
Statement, are set out on pages 112
and 81 respectively of the report.
Internal audit
Following the successful expansion
of the function with the appointment
of the Head of Internal Audit and
Risk in the prior year, the Group’s
first internal audit plan was approved
and carried out in FY23. A number of
risk based reviews were undertaken
by internal audit, establishing new
independent third line assurance
reports for the business and
management agreed actions
to address control weaknesses
identified. Internal audit’s areas of
review in FY23 included:
• Balance sheet reconciliations
controls audit
• End-to-end audits of purchasing
controls for both sourcing
vehicles and all non-vehicle
expenditure
• Sales ledger control account
controls audit
•
Inputs to payroll controls audit
• Bank and cash procedures audit
• The Committee assesses the
audit plan
• All Committee members, key
members of management, those
who regularly provide input into
the Committee provide feedback
on how well PwC performed the
year end audit
• The feedback and conclusions
are discussed, along with the
conclusion regarding specific
audit risks, with an overall
conclusion on audit effectiveness
reached. Any opportunities for
improvement are brought to the
attention of the external auditor
The Committee concluded that PwC
provided an effective, independent
and objective audit and that the
Committee was therefore satisfied
that it had obtained a high quality
audit. The Committee agreed
to recommend to the Board the
reappointment of PwC as the
Group’s external auditor and a
resolution to this effect will be
proposed at the 2023 AGM.
Non-audit services
To further safeguard the
independence and objectivity of the
external auditor, non-audit services
provided by the external auditor are
considered, and where appropriate
authorised, by the Committee
in accordance with a non-audit
services policy. This policy limits
the amount and type of services
undertaken by our auditor. Permitted
services are subject to a cap of 70%
of the average of the fees paid for
the statutory audits over a three
year period.
There were no non-audit fees for the
year ended 31 March 2023.
Keith Mansfield
Audit Committee Chair
14 June 2023
The establishment of the function has
been well received in the business
and requests for third line assurance
over controls have come from a wide
range of business functions. The FY24
internal audit plan was approved in
January 2023, covering a range of
core audits over financial controls and
a series of risk based reviews to be
carried out across FY24.
External auditor
Independence
There are a number of robust
policies in place, all of which aim
to safeguard the independence of
the external auditor. In accordance
with best practice, the external
audit contract will be put out to
tender every ten years, with the next
retender due no later than the year
ending 31 March 2027.
In accordance with the Auditing
Practices Board standards, the lead
audit partner at PwC will be rotated
every five years to ensure continuing
independence. Mark Skedgel, the
current audit partner, assumed this
responsibility for the year ended 31
March 2020.
There are no contractual obligations
that restrict the Company’s choice
of external auditor.
External auditor effectiveness
The Committee conducts an annual
external audit effectiveness review
each year which examines the
auditor’s independence, the audit
planning process, audit approach
and delivery, audit team expertise
and experience, resources,
responsiveness and communication
in respect of the financial year
audit. In order to discharge this
responsibility the Committee
followed the process outlined below:
• The terms, areas of responsibility,
duties and scope of work of the
external auditor as set out in the
engagement letter are reviewed
at the Committee meetings
• The Committee discusses and
agrees at the planning stage the
draft list of specific audit risks
Motorpoint Group PLC | Annual Report and Accounts 2023
8 5
Financial StatementsStrategic ReportGovernance N O M I N AT I O N C O M M I T T E E R E P O R T
Nomination Committee
Chair’s statement
C O M M I T T E E
G O V E R N A N C E
Committee membership
and attendance
During the year the
Committee comprised:
• John Walden (Chair)
• Adele Cooper
• Keith Mansfield
• Mary McNamara
• Mark Carpenter (CEO)
The Committee met once
during the year and attendance
is set out in the table on
page 81.
D E A R S H A R E H O L D E R
I am pleased to present the report
of the Nomination Committee (the
‘Committee’) for FY23.
effective, and that the appropriate
corporate governance standards
and practices are in place.
The Nomination Committee keeps
under regular review the structure
and composition of the Board and
its committees and ensures that the
Board and executive leadership has
the appropriate balance of skills,
expertise and experience to support
the Company.
In FY23, the Committee met once,
where it received a recruitment
update and discussed potential
ways to help promote diversity
within the Senior Leadership Team
('SLT'). There were no new Board
appointments or resignations during
the period and the Committee
remains satisfied that the Board
composition is balanced and
“ D i ve r s i t y a n d i n c l u s i o n
i s i m p o r t a n t to u s a n d
w i l l re m a i n a key fo c u s
fo r t h e C o m m i t te e i n
t h e ye a r a h e a d .”
John Walden
Nomination Committee Chair
Following the external board
effectiveness review, the Board’s
discussions identified a number of
opportunities to help encourage
a diverse and inclusive pipeline of
executive and non-executive talent
within the Company. This will be
a key focus for the Committee in
the upcoming year to ensure that
momentum is maintained. The
Committee is clear on the vision
to promote and model an inclusive
and supportive culture where every
individual, of any identity, from any
background, feels they can be their
authentic self at work, and keeps
those values front and centre of its
work. Further details on diversity
within the business can be found
within the Strategic Report on pages
41 and 42.
All Directors are subject to election
or re-election to the Board by
shareholders on an annual basis at
the Company’s AGM. The Chair, on
behalf of the Board, has confirmed
each Director continues to be an
effective member of the Board
and will stand for re-election at
the 2023 AGM.
8 6 Motorpoint Group PLC | Annual Report and Accounts 2023
Activities of the Committee
During the year the main activities of
the Committee were as follows:
• Considered diversity within the
SLT and discussed practical ways
in which the Board could support
the promotion of diversity and
inclusion at senior levels
Composition of the Board as at
31 March 2023
INED/Executive split
Chair
INED (excluding the Chair)
Executive
1
3
2
Diversity and inclusion
The Board recognises the
importance of diversity and
inclusion in the boardroom and
seeks to recruit Directors with varied
backgrounds, skills and experience.
Appointments are made on merit
and against objective criteria, taking
account of the skills, experience and
expertise of candidates.
Committee responsibilities
The Committee is responsible for:
• Board composition: The
Committee considers the balance
of skills, diversity, knowledge
and experience of the Board
and its committees and reviews
the Board’s structure, size and
composition, including the time
commitment required from Non-
Executive Directors
• Board and executive nominations:
The Committee leads on the
recruitment and appointment
process for Directors and makes
recommendations regarding any
adjustments to the composition
of the Board
• Board and executive succession
planning: The Committee
proposes recommendations to
the Board for the continuation
in service of each Director and
ensures that the Board is well
prepared for changes to its
composition and that appropriate
succession plans are in place
The Committee has formal terms
of reference which are available
on the Company’s website
motorpointplc.com.
The Financial Conduct Authority
(FCA) has introduced new rules
and targets which require listed
companies to make disclosures
in relation to gender and ethnic
diversity at Board and executive
management level. The targets
are that at least 40% of the Board
should be women, at least one of
the senior Board positions should be
a woman, and at least one member
of the Board should be from an
ethnic minority background. As at
31 March 2023, we comply with the
senior Board position target, with
the SID role being occupied by a
woman, but have not achieved the
target of the Board having 40%
female representation or a board
member from an ethnic minority.
The Committee seeks to attract
more women and people from an
ethnic minority background onto
the Board through a combination
of targeted succession planning
and the promotion of a culture
that actively celebrates diversity
throughout the Company.
The tables below identify the gender
identity and ethnic diversity of
members of the Board and executive
management.
Reporting table on sex/gender representation
Number of
Board members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID,
Chair)
Number in
Executive
Management
Percentage
of Executive
Management
Men
Women
Not specified / prefer not to say
4
2
0
66%
34%
0%
3
1
0
5
1
0
83%
17%
0%
Reporting table on ethnicity representation
White British (or other White)
Mixed / Multiple Ethnic Groups
Asian / Asian British
Black / African / Caribbean
Black British
Other ethnic group, including Arab
Not specified / prefer not to say
Number of
Board members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID,
Chair)
Number in
Executive
Management
Percentage
of Executive
Management
6
0
0
0
0
0
0
100%
0%
0%
0%
0%
0%
0%
4
0
0
0
0
0
0
4
0
2
0
0
0
0
66%
0%
34%
0%
0%
0%
0%
As part of our commitment to Diversity, Equity and Inclusion we have a number of data collection points throughout
the employee experience that allow us to measure how we are doing against our objective of having a truly diverse
Motorpoint Group PLC | Annual Report and Accounts 2023
8 7
Financial StatementsStrategic ReportGovernance N O M I N AT I O N C O M M I T T E E R E P O R T C O N T I N U E D
workforce and inclusive culture. This starts at the recruitment stage as we have an Applicant Tracking System which
allows us to gather data on all applications. We will then also complete a right to work check for all hired employees
and can capture data here. Finally, as part of this disclosure we have directly asked each member of the team how
they identify within the outlined categories.
The Board’s composition and size is kept under review by the Nomination Committee to retain an appropriate balance
of skills, experience, diversity and knowledge of the Group. The Board also recognises the importance of diversity
and inclusion at senior management level. The Group’s SLT is made up of eight members including the CEO and CFO.
Information on initiatives on diversity and inclusion can be found in the People section of the Strategic Report on
pages 41 and 42.
Board and Committee Effectiveness Review
The Board undertakes a formal evaluation of its performance, and that of each Director, on an annual basis. The principal
committees of the Board also undertake an annual evaluation of their effectiveness in accordance with their terms of
reference. In FY22 the Board identified four key action points arising from its self-evaluation and measured the steps
taken throughout the year to achieve them. An update on progress in all four areas can be found in the table below.
FY22 Issue/
Recommendation
Stakeholder
engagement
Company
secretarial support
Quality of Board
papers
Externally
facilitated Board
evaluation
Action
Progress during FY23
Stakeholder engagement will be further
enhanced through the development of
a structured and suitable programme of
events, meetings and / or forums to ensure
regular, quality dialogue between the Board
and stakeholders. Specific focus will be
given to understanding stakeholder views
on ESG matters to ensure alignment with the
Company’s ESG strategy.
The Board will regularly review the list
of identified stakeholders to ensure it
remains relevant.
The Company Secretary has had varying
levels of interim company secretarial
support through the year. The level of
support required will be monitored to
ensure good governance practices are
consistently followed.
The new Chair and Company Secretary to
review the information provided in operational
reports to ensure that the quality of Board
papers addresses the appropriate topics and
has sufficient level of detail. A new format will
be introduced for all Board papers to clearly
identify the purpose, and the ask of Board
members in each case.
The Board determined that this
recommendation had been achieved.
The Board has engaged with a variety of
stakeholders in FY23, including employees
and shareholders, as well as through its work
around ESG.
The Board determined that this
recommendation had been achieved.
Company secretarial support has been
outsourced, and the FY23 board evaluation
demonstrated a significant improvement in
the support provided.
The Board determined that this
recommendation had been achieved.
A new format of Board papers was introduced
in FY23 and has provided additional detail
and context to Board discussions and
decision making.
External Board evaluation to be sought during
FY23.
The Board determined that this
recommendation had been achieved.
The Board commissioned an independent
external board evaluation in February 2023,
and agreed an action plan to address areas
for development and help ensure continued
improvement.
8 8 Motorpoint Group PLC | Annual Report and Accounts 2023
In line with its discussions the previous year, in early 2023 the Board commissioned an external evaluation of
the Board and its committees by Indigo Independent Governance. As Indigo also provides governance services
to Motorpoint, the Board agreed that the review would be carried out by a separate team at Indigo to maintain
independence and ensure a truly external view. The evaluation covered a range of matters including the balance of
contributions, quality of debate and constructive challenge, senior leadership succession, stakeholder engagement,
the effectiveness of agenda planning and the quality and timeliness of meeting papers.
The results of the review were circulated to members of the Board and its recommendations were discussed at the
February 2023 Board meeting and actions were agreed and adopted at the March 2023 Board meeting. Three specific
actions were identified for FY24, as set out in the below table.
FY23 Issue/Recommendation
Action
Employee engagement
A programme of on site Board and Strategy sessions to be held to allow the
Directors to engage directly with local teams as well as the SLT.
Succession planning
Diversity, Equity and Inclusion
Employee engagement updates to be scheduled at Board meetings.
Nominations Committee and Board to be allocated the necessary time and
resources to proactively consider succession planning strategies in the context
of both the Board and executive leadership, with a focus on developing a
pipeline of quality internal candidates.
Further develop the Diversity, Equity and Inclusion strategy, and monitor how
it is being implemented. Updates to be provided at Board and/or Committee
meetings in FY24.
Ensure that diversity is factored into the discussion on succession planning for
Board and executive roles.
The evaluation established that the Board remains satisfied that each Director contributes effectively to the Board and
its committees.
Election or re-election of Directors
In compliance with the 2018 Code, all current Directors will stand for re-election at the forthcoming AGM. The Board
has determined that all Directors standing for election or re-election at the AGM continue to be effective, hold recent
and relevant experience, and continue to demonstrate commitment to the role.
Biographical details of each Director standing for election or re-election will be set out in the Notice of AGM.
John Walden
Nomination Committee Chair
14 June 2023
Motorpoint Group PLC | Annual Report and Accounts 2023
8 9
Financial StatementsStrategic ReportGovernance E S G C O M M I T T E E R E P O R T
ESG Committee
Chair’s statement
C O M M I T T E E
G O V E R N A N C E
Committee membership
and attendance
During the year the
Committee comprised:
• Adele Cooper (Chair)
• Keith Mansfield
• Mary McNamara
• Mark Carpenter (CEO)
• Chris Morgan (CFO)
The Committee met twice
during the year and attendance
is set out in the table on
page 81.
D E A R S H A R E H O L D E R
I am pleased to present the
report of the ESG Committee (the
‘Committee’) for FY23. The principal
purpose of this report is to look
back over the financial year ended
31 March 2023 and describe the
Committee’s responsibilities and
activities during the year.
The Committee, which first
met in June 2022, oversees the
development and implementation
of the Group’s ESG strategy and
monitors its performance in relation
to ESG matters.
“ P ro m i s i n g i n i t i a l
p ro g re s s h a s b e e n
m a d e by t h e C o m p a ny
i n re l a t i o n to ES G, a n d
f u r t h e r d eve l o p m e n t i s
ex p e c te d a s t h e s t ra te g y
c o n t i n u e s to b e ro l l e d
o u t a c ro s s t h e b u s i n e s s .”
Adele Cooper
ESG Committee Chair
During its inaugural year, the
ESG Committee met twice,
where it focused on reviewing
and monitoring the Group’s
new sustainability and diversity
objectives and considered its
effectiveness and areas for
development following the external
Board evaluation. Our measurement
of our performance in relation
to ESG goals has significantly
improved over the last year and
promising initial progress has been
made. Further development is
expected as the strategy continues
to be rolled out across the business.
Committee composition
and membership
The Committee currently comprises
three independent Non-Executive
Directors, the CEO and CFO.
Only members of the Committee
are entitled to attend the meetings.
Key staff, such as the Head of
Internal Audit and Risk, and Head of
People, may be invited to attend for
all or parts of any meeting, as and
when appropriate.
9 0 Motorpoint Group PLC | Annual Report and Accounts 2023
• Make proposals to the
Remuneration Committee
regarding appropriate ESG
related performance objectives
for Executive Directors. Provide
an assessment as to the
outcomes of the ESG related
performance objectives as at the
end of the reporting period
I would like to thank my colleagues
in the Committee for their valued
contributions, as well as extending
my thanks to our colleagues
within the business who have
enthusiastically embraced the
Group’s vision and aims in relation
to ESG.
Adele Cooper
ESG Committee Chair
14 June 2023
Role of the Committee
The role and responsibilities of
the Committee are set out in its
terms of reference, which were
updated in January 2023 to more
clearly clarify responsibilities and
are available on the Company’s
website motorpointplc.com. The key
objectives of the Committee are to:
• Assist the Board in overseeing the
development and implementation
of the Group’s ESG strategy and
monitoring its performance in
relation to ESG matters
• Oversee and support stakeholder
engagement on ESG matters
including, but not limited to,
understanding stakeholder
reporting expectations
• Review, prior to approval by
the Board, the ESG matters to
be presented in the Company’s
annual report and monitor the
integrity of these reports
• Oversee and monitor the
Group’s progress against any
net zero, decarbonisation or
other environmental, social or
governance strategies
Motorpoint Group PLC | Annual Report and Accounts 2023
9 1
Financial StatementsStrategic ReportGovernance R E M U N E R AT I O N C O M M I T T E E R E P O R T
Remuneration Committee
Chair’s statement
C O M M I T T E E
G O V E R N A N C E
Committee membership
and attendance
During the year the
Committee comprised:
• Mary McNamara (Chair)
• Adele Cooper
• Keith Mansfield
The Committee met five times
during the year and attendance
is set out in the table on
page 81.
•
D E A R S H A R E H O L D E R
I am pleased to present the
Company’s Directors’ Remuneration
Report for the financial year ended
31 March 2023. This report is split
into two sections:
•
the Directors' Remuneration
Policy, which describes the new
remuneration policy for the next
three years and which will be
subject to a binding shareholder
vote at the 2023 AGM; and
the Annual Report on
Remuneration, which includes
the Chair's statement and
sets out in detail how the
remuneration policy has been
applied in the year to 31 March
2023, as well as how the new
policy will be applied in the
forthcoming year. This section of
the report will be subject to an
advisory shareholder vote at the
2023 AGM.
“ T h e b u s i n e s s
e n c o u n te re d a n u m b e r
o f w e l l d o c u m e n te d
m a c ro e c o n o m i c
h e a d w i n d s d u r i n g
F Y2 3 , w h i c h re s u l te d
i n s t re tc h i n g f i n a n c i a l
t a rg e t s n o t b e i n g m e t .
H o w eve r p ro g re s s
h a s b e e n m a d e o n
n o n -f i n a n c i a l t a rg e t s ,
i n p a r t i c u l a r t h e m a r ke t
s h a re e l e m e n t h a s b e e n
a c h i eve d , w h i c h i s a
key c o m p o n e n t o f
o u r s t ra te g y.”
Mary McNamara
Remuneration Committee Chair
9 2 Motorpoint Group PLC | Annual Report and Accounts 2023
Proposed new Remuneration
Policy
The Remuneration Committee is
responsible for setting and applying
a remuneration policy which serves
to provide appropriate levels
of remuneration to the Senior
Management Team. The goals of the
policy are to provide appropriate
reward for strong performance and
quality leadership, to ensure the
retention of key employees and to
allow the Company to attract high
quality candidates.
The Committee values the views
of the Company’s shareholders
and considered guidance from
shareholder representative groups
in reviewing and determining the
new policy, alongside the business
strategy and market practice. As part
of the consultation with respect to the
proposed new remuneration policy,
the Chair of the Committee reached
out to seek the views of our largest
shareholders on certain aspects
of the policy including pension
provision, annual bonus (opportunity
and structure) and the level of
restricted share awards. Following
the consultation and consideration
of the feedback received, it was
decided that there should be no
change to the policy for annual
bonus or restricted share awards and
so there is only one change to the
policy, which is to reduce the CEO’s
pension contribution from 10% to
3% of salary, to be aligned with that
of the workforce. We are aware that
the CEO’s salary and total package
in particular still lags the market and
will keep the packages for Executive
Directors under review during this
policy period.
The new Directors’ Remuneration
Policy can be found on page 94.
The table below provides a summary of total remuneration for the Executive
Directors for FY23.
Performance for FY23 and
remuneration outcomes
The business encountered a
number of well documented
macroeconomic headwinds during
FY23, which included higher interest
rates and inflation, consumer
uncertainty which reduced demand,
supply chain challenges, a falling
used vehicle market and lower gross
margins due to Electric Vehicle value
falls and lower finance commissions.
These have culminated in our
financial targets not being met for
the FY23 annual bonus.
However, some of the non-financial
elements of the bonus plan have
delivered performance above
threshold targets and in particular
the market share element has been
achieved, which is a key component
of our strategy. Overall, a bonus
payout of 38.8% of maximum has
been achieved. Whilst maintaining
a focus on short term financial
performance is important and
we are disappointed to miss the
stretching targets that were set,
nonetheless it is appropriate to
reward strong progress against the
business strategy progress and the
Committee is comfortable with this
level of bonus payout.
The Restricted Shares Award
granted to the CEO and other
senior management in August
2020 will vest in August 2023. This
grant predated the CFO joining
the business. We are satisfied that
the performance underpin has
been achieved over the three year
performance period to 31 March
2023. In particular, management
has made significant strategic
progress in challenging market
conditions and has grown market
share substantially. Executives have
also been aligned to the shareholder
experience over the vesting period,
with lower values on vesting as
a result of the fall in share price.
Therefore the Committee has
determined that the award should
fully vest and, for the CEO, 50% will
vest in August 2023, 25% will vest
in August 2024 and 25% will vest
August 2025.
Salary
(£’000)
Benefits
(£’000)
Pension
(£’000)
Bonus
RSA
Total
(£’000)
(£’000)
(£’000)
Mark Carpenter
Chris Morgan
360
263
2
2
36
8
140
102
270
197
808
572
in the share price and considered
whether a scale back of award
level would be appropriate.
However, the Committee noted
that Executive Directors have
shared the downside experience
alongside shareholders through the
lower value of shareholdings and
historic Restricted Share Awards.
The Committee therefore considers
maintaining the award level will
allow the Executive Directors to
be appropriately incentivised to
deliver long term shareholder value
through the successful execution of
the strategy. A robust performance
underpin will apply, and for FY24
awards an element of the financial
underpin will be based on long term
ESG performance.
We believe that Motorpoint’s
approach to remuneration is
appropriate, taking into account
workforce remuneration outcomes
and the wider stakeholder
experience. The Committee
therefore concluded it would not
be necessary to exercise discretion
to adjust any of the FY23 incentive
outcomes. The Committee is
satisfied that the remuneration
policy operated as intended for FY23
and that no substantial changes are
required for FY24 to the policy and
its operation.
On behalf of all of my colleagues
on the Committee, I hope that you
will support the resolution on the
new Directors' Remuneration Policy
and approve the annual report on
Remuneration at this year’s AGM.
Mary McNamara
Remuneration Committee Chair
14 June 2023
We are proud to be a Real Living
Wage ('RLW') employer and this
year, to provide additional support
to our lowest employees, we have
brought forward the increase to the
RLW from the recommended date
of 1 April 2023 to 1 January 2023.
Bonuses have been payable widely
across the workforce.
Application of the policy
for FY24
Salary increases for both Executive
and Non-executive Directors will
be 3%, with the wider workforce
receiving an increase of 5% of salary.
The Chief Executive’s pension
contribution will reduce from 10% of
salary to 3% of salary, effective from
the date of the 2023 AGM when
the new remuneration policy takes
effect. This will ensure that both the
CEO and CFO pension contributions
are aligned to the rate payable to
the majority of the workforce.
The annual bonus opportunity will
remain at 100% of salary and is
based on performance measures
aligned to the business strategy.
Whilst we still believe that there
should be a significant element
based on non-financial strategic
measures, we have determined
that the weighting on financial
measures should be increased for
FY24. Measures and their weightings
for FY24 are as follows: PBT (25%),
market share growth (25%), sales
attributed to digital leads (20%)
customer satisfaction (10%),
employee engagement (10%), and
in addition, we have introduced
an environmental metric based
on the reduction of Scope 1 & 2
emissions (10%).
Restricted Share Awards will be
made over shares equivalent to
75% of salary for both Executive
Directors. The Committee
recognises the recent weakness
Motorpoint Group PLC | Annual Report and Accounts 2023
9 3
Financial StatementsStrategic ReportGovernance R E M U N E R AT I O N P O L I C Y
This section of the report details the
Remuneration Policy for Executive
Directors. The policy set out below
will, subject to shareholder approval,
become effective from the 2023
AGM on 26 July 2023 and will apply
for up to three years from this date.
Compliance statement
This report has been prepared in
accordance with the provisions
of the Companies Act 2006 and
Schedule 8 of the Large and
Medium sized Companies and
Groups (Accounts and Reports)
(Amendment) Regulations 2013
(Regulations) and the subsequent
amendments in 2018 and 2019. It
also meets the requirements of
the UK Listing Authority’s Listing
Rules and the Disclosure and
Transparency Rules. The sections
of the Remuneration Report that
are subject to audit are marked as
Audited Information. The remaining
sections of the Remuneration Report
are not subject to audit.
Decision making process for
the determination, review and
implementation of the policy
The Committee sets the
remuneration policy for Executive
Directors and other Senior
Executives taking into account the
Company’s strategic objectives,
shareholder expectations, the
principles of the UK Corporate
Governance Code and the
remuneration policy for the
wider workforce. The aim of the
remuneration policy is to provide
an appropriate pay structure
for the Executive Directors and
senior management, to ensure
their retention and to continue to
focus them on delivering strong
financial performance. To manage
any potential conflicts of interest,
the Committee ensures that no
individual is involved in discussions
regarding their own remuneration
arrangements.
The implementation of the policy
is considered each year by the
Committee in light of the strategic
priorities and the wider stakeholder
experience whilst incentive targets
are reviewed to check if they
remain appropriate or need to
be recalibrated.
The Committee addresses the following factors when determining the remuneration policy and its implementation,
as recommend by the UK Corporate Governance Code:
Action
Progress during FY23
Clarity – remuneration arrangements should
be transparent and promote effective
engagement with shareholders and
the workforce.
• The metrics used in our annual bonus have a direct link to our Company KPIs to
ensure performance related remuneration supports and drives our strategy
• Restricted Shares ensure senior management are focused on the long term
sustainability and interests of the Company and all of its stakeholders
• The Remuneration Committee consults with shareholders to explain and clearly
set out any proposed changes to the policy and is committed to having an open
and constructive dialogue with shareholders
Simplicity – remuneration structures should
avoid complexity and their rationale and
operation should be easy to understand.
• Our remuneration structure which consists of annual bonus and Restricted
Shares, which are not subject to performance measures, is simple and easy to
understand
• The bonus is payable in cash. The Restricted Shares are the sole share based plan
Risk – remuneration arrangements should
ensure reputational and other risks from
excessive rewards, and behavioural risks that
can arise from target based incentive plans,
are identified and mitigated.
• The Committee has ensured that risks are identified and mitigated by the
presence of:
– discretion to override the formulaic outturn of incentives
– clawback and malus provisions
• Restricted Shares ensure Executives are not encouraged to make short term
decisions but to deliver sustainable shareholder returns over the long term
• Executives are encouraged to build significant shareholdings
Predictability – the range of possible values of
rewards to individual Directors and any other
limits or discretions should be identified and
explained at the time of approving the policy.
• The scenario charts on page 99 set out the potential rewards available to the
Executive Directors under three different performance scenarios, and in the
case of a 50% share price increase in relation to the restricted shares
Proportionality – the link between individual
awards, the delivery of strategy and the long
term performance of the Company should
be clear. Outcomes should not reward
poor performance.
• Variable pay comprises the majority of the Executive Directors’ packages, with
the individual limits and pay-out for different levels of performance set out in
the policy and the scenario charts on page 99. The performance conditions
used for the annual bonus are aligned to strategy and the targets are set to be
stretching to reward for delivering above market returns in line with strategy
• The Committee retains discretion to override the formulaic outturns of
incentives if the payout does not reflect broader Company performance and
other factors
9 4 Motorpoint Group PLC | Annual Report and Accounts 2023
Action
Progress during FY23
Alignment to culture – incentive schemes
should drive behaviours consistent with
Company purpose, values and strategy.
• The alignment of metrics to the medium and long term strategy ensures
behaviours consistent with the Company’s purpose and values are being
encouraged
• The presence of clawback and malus provisions discourages behaviours that
are not consistent with the Company’s purpose, values and strategy
• The Committee reviews the wider workforce pay and policies to ensure there is
alignment with the Executive Director policy and that remuneration is designed
to support the Company’s people centric culture
Changes to the Directors’ Remuneration Policy
Following a detailed review of the remuneration policy and shareholder engagement, there is only one change
proposed to the policy. The pension policy has been updated to reflect that Executive Directors may receive a
pension contribution in line with the contribution available to the wider workforce (currently 3% of salary). The CEO’s
pension will be aligned to this rate following the 2023 AGM, the date the new policy applies.
Directors’ Remuneration Policy
A breakdown of all elements of the Executive Remuneration Policy and an explanation of how they operate can be
found in the table below:
Purpose and link
to strategy
Operation
Performance measurement
Maximum opportunity
B A S E S A L A R Y
To aid the
recruitment of
Executive Directors
of a suitable calibre
for the role and to
provide a core level
of reward to reflect
the duties required.
B E N E F I T S
To provide a market
competitive benefits
package for the
executives to aid
recruitment and
retention.
Base salaries will normally be reviewed
annually by the Committee with any increases
typically taking effect from 1 April each year.
The benefits offered to Executive Directors
comprise, but are not limited to, family
medical insurance and company car.
The Committee may offer an equivalent cash
allowance instead if it feels it is more suitable.
Other reasonable benefits may be offered
as appropriate (including, in exceptional
circumstances, relocation and/or disturbance
allowances).
Executive Directors may also be reimbursed
for any reasonable expenses incurred in
performing their duties, and any income tax
payable thereon.
Base salary levels are
set at a level to reflect
the experience, skills
and responsibilities of
the individual as well as
the scope and scale of
their role.
Increases to base salary
will take into account
the performance of the
individual and Company
and external indicators
such as inflation.
Not applicable.
While there is no maximum
salary, increases will
normally be in line
with the typical level of
increase awarded to other
employees of the Group.
The Committee may award
increases above this level
to ensure that the salaries
appropriately reflect the
role, responsibilities,
performance and
experience of the
Directors.
There is no maximum
limit on the value of the
benefits provided but
the Committee monitors
the total cost of the
benefit provision on a
regular basis.
Motorpoint Group PLC | Annual Report and Accounts 2023
9 5
Financial StatementsStrategic ReportGovernance A pension contribution is
payable in line with the
pension available to the
majority of the workforce,
currently 3% of salary.
The pension for the CEO
will reduce from 10% of
salary to 3% of salary from
the 2023 AGM.
100% of salary.
Normally 75% of
salary. However, an
individual maximum
of 100% of salary may
apply in exceptional
circumstances.
R E M U N E R AT I O N P O L I C Y C O N T I N U E D
Operation
Performance measurement
Maximum opportunity
Purpose and link
to strategy
P E N S I O N
To provide market
competitive pension
arrangements for the
executives and to
aid recruitment and
retention.
Not applicable.
Executive Directors are eligible for a
contribution to the Group personal pension
plan, or any other nominated personal
pension fund.
Where appropriate, Executive Directors
may instead receive a cash allowance in
lieu of formal pension contributions, or a
combination of both.
A N N U A L B O N U S
To encourage
improved financial
and operational
performance and
align the interests
of Directors with the
short term Company
strategy.
Bonus payments are subject to the
achievement of performance targets normally
set over one financial year.
Annual bonuses are payable at the sole
discretion of the Committee. The Committee
has discretion to adjust the formula driven
outturn of the annual bonus calculation.
All bonus payments are payable in cash
and subject to appropriate recovery and
withholding arrangements.
Performance will normally
be based on a mix of
financial, operational and /
or non-financial measures
aligned to the strategic
objectives of the business.
Financial performance will
usually be represented
by PBT targets, although
the Committee reserves
the right to include other
measures in support of
the Company strategy as
it sees fit.
Stretching performance
targets will be determined
taking into account
internal and external
forecasts. For threshold
performance up to 30% of
maximum is payable.
L O N G T E R M I N C E N T I V E S – R E S T R I C T E D S H A R E S
To encourage
improved financial
and operational
performance and
align the interests
of Directors with
the long term
Company strategy
and the interests of
shareholders through
share ownership.
Awards will normally be granted following
the publication of the Company’s annual
results each year.
Restricted Shares may normally vest no
sooner than 50%, 25% and 25% over three,
four and five years from grant, subject to
service, and subject to an underpinning
financial performance condition.
Awards are additionally subject to a post
vesting holding period during which time
vested shares may not be sold (other than for
tax) before five years from grant.
This holding period will continue post
cessation of employment (to the extent that
awards do not lapse).
The Committee may determine that dividend
equivalents will accrue over the vesting/
holding period.
Vesting of awards is at the sole discretion
of the Committee and the Committee may
reduce the level of the award after grant and
at vesting, if it considers that it is appropriate
to do so.
Restricted Shares are subject to recovery
and withholding arrangements.
In order for Restricted
Shares to vest, the
Remuneration Committee
must be satisfied that
business performance is
robust and sustainable
and that management
has strengthened the
business. In assessing this
performance condition,
the Committee will
consider financial and non-
financial KPIs, including
ESG targets, as well as
delivery against strategic
priorities. To the extent
it is not satisfied that this
performance condition is
met, the Committee may
scale back the level of
vested awards including
to zero. This performance
assessment will take place
at the end of the third year.
9 6 Motorpoint Group PLC | Annual Report and Accounts 2023
Performance measurement
Maximum opportunity
Not applicable.
In line with statutory
limits.
Not applicable.
Not applicable.
Purpose and link
to strategy
Operation
A L L E M P L O Y E E S H A R E P L A N S
To align the interests
of Directors and
other employees
with those of the
shareholders through
share ownership.
The Company has adopted employee share
plans in which the Executive Directors are
eligible to participate on the same terms as
all other employees.
S H A R E H O L D I N G G U I D E L I N E S
To align the interests
of Directors with
those of the
shareholders through
share ownership.
All Executive Directors are required to build
and maintain a shareholding equivalent in
value to 200% of their annual base salary.
Until this guideline is met, Directors must
retain half of any Restricted Shares that vest
(after payment of tax and national insurance
contributions) together with any shares
deferred as part of the bonus (if applicable).
Post cessation of employment, Executives
will be required to retain the lower of the
shareholding requirement (200% of salary)
or the actual shares they hold on cessation
of employment for a period of two years.
Any voluntary purchases of shares by the
Executives from the start of the previous
policy period will be excluded from this
requirement. The Committee has discretion
to amend the requirement in certain
circumstances as it considers appropriate.
Choice of performance measures
The Committee retains flexibility as to the choice of performance measures for future annual bonus awards.
Measures will be selected as appropriate to reflect the business strategy and to ensure the delivery of sound financial
performance. The current performance measures are disclosed in the annual report on remuneration, together with
the link to the business strategy. The Committee sets appropriate and stretching targets for the annual bonus in the
context of the Company’s business plan, trading environment and strategic plan.
Incentive plan operation
The Committee will operate the Company’s incentive plans according to their respective rules and consistent with
normal market practice, the Listing Rules and HMRC rules where relevant, including flexibility in a number of regards.
This includes timing of awards, dealing with leavers and making adjustments to awards following acquisitions,
disposals, changes in share capital and other merger and acquisition activity. The Committee also retains the ability
to adjust the targets and / or set different measures for the annual bonus plan if events occur which cause it to
determine that the conditions are no longer appropriate and the amendment is required so that the conditions
achieve their original purpose and are not materially less difficult to satisfy. The Committee may adjust the formula
driven outturn of the annual bonus calculation in the event it considers that the outturn does not reflect underlying
performance, overall shareholder experience or employee reward outcome.
Recovery and withholding provisions may be operated at the discretion of the Committee in respect of awards
granted under the annual bonus plan and Restricted Shares in certain circumstances (including where there is
a material misstatement or restatement of audited accounts, an error in assessing any applicable performance
condition or bonus outcome, or in the event of gross misconduct on the part of the participant, corporate failure,
failure of risk management or reputational damage).
Any use of the above discretions would, where relevant, be explained in the annual report on remuneration.
Motorpoint Group PLC | Annual Report and Accounts 2023
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Financial StatementsStrategic ReportGovernance R E M U N E R AT I O N P O L I C Y C O N T I N U E D
Remuneration Policy for Non-Executive Directors
The table below sets out how pay is structured for the Non-Executive Directors ('NEDs').
Purpose and link
to strategy
Operation
Performance measurement
Maximum opportunity
Not applicable.
Current fee levels are set
out in the annual report
on remuneration.
Aggregate fee levels are
subject to the maximum
limit set out in the Articles
of Association.
F E E S
To ensure a fair
reward for services
provided to the
Company.
NEDs receive a fixed base fee in cash or shares
for their role on the Board, plus supplementary
fees for additional responsibilities such as
performing the role of SID, or chairing one of
the Board Committees.
The Non-Executive Chair receives a fixed fee
only, and is not eligible for any additional
responsibility fees.
Fee levels are reviewed normally on an annual
basis, and may be increased taking into
account factors such as the time commitment
and complexity of the role and market levels in
companies of comparable size and complexity
and other broadly comparable companies.
Each NED will be entitled to be reimbursed
for all reasonable expenses incurred by them
in the course of their duties to the Company
(plus amounts in respect of any tax payable),
and has the benefit of indemnity insurance
maintained by the Group on their behalf
indemnifying them against liabilities they may
potentially incur to third parties as a result of
his / her office as Director.
Where there has been a material increase in
time commitment in the year, fees may be
temporarily increased to reflect this.
S H A R E O W N E R S H I P G U I D E L I N E S
To align the interests
of Directors with
those of shareholders
through share
ownership.
All NEDs are encouraged to build and
maintain a shareholding equivalent in value to
100% of their annual fees.
Not applicable.
Not applicable.
Reward scenarios
The bar charts in this section detail how the composition of the Executive Directors’ remuneration package varies at
different levels of performance.
• Threshold includes fixed pay only (i.e. base salary, benefits and pension reducing to 3% of salary from the 2023
AGM for the CEO)
• On target includes fixed pay, 60% of maximum bonus and full vesting of Restricted Shares
• Maximum includes fixed pay, maximum bonus payout and full vesting of Restricted Shares
• Maximum plus the impact of 50% share price appreciation on Restricted Shares
Salary levels are effective as at 1 April 2023, and the value for benefits is the cost of providing those benefits in FY23.
9 8 Motorpoint Group PLC | Annual Report and Accounts 2023
No share price growth has been factored into the chart, except where indicated, and all amounts have been rounded
to the nearest £1,000.
£1,400,000
£1,200,000
£1,000,000
£800,000
£600,000
£400,000
£1,199,000
£1,013,000
£894,000
27%
35%
31%
25%
£393,000
36%
31%
£200,000
100%
44%
37%
34%
£646,000
£754,000
27%
£856,000
35%
31%
26%
43%
£281,000
100%
36%
32%
37%
33%
£0,000
Threshold
On target
Maximum
Maximum
with 50%
share price
appreciation
Threshold
On target
Maximum
Maximum
with 50%
share price
appreciation
Chief Executive Officer
(Mark Carpenter)
Chief Financial Officer
(Chris Morgan)
Fixed Pay
Annual Bonus
Restricted Shares
Approach to recruitment remuneration
In determining the remuneration package for a new Executive Director, the Committee takes into account the skills
and experience of the individual, the market rate for a candidate of that experience and the importance of securing
the individual.
New Executive Director hires (including those promoted internally) will be offered packages in line with the policy in
place at the time, except as noted below:
•
If it is considered appropriate to set the salary for a new Executive Director at a level which is below market, his
or her salary may be increased in future periods to achieve the desired market positioning by way of a series of
phased above inflation increases, subject to his or her continued development in the role.
• Any bonus payment for the year of joining will normally be prorated to reflect the proportion of the period worked,
and the Committee may set different performance measures and targets, depending on the timing and nature of
the appointment.
• The ongoing annual bonus and restricted shares opportunities will be in line with the limits set out in the
policy table.
• The Committee recognises that it may be necessary in some circumstances to provide compensation for amounts
forfeited from a previous employer (‘buy out awards’). Any buy out awards would be limited to the value of
remuneration forfeited when leaving the former employer and would be structured so as to be, to the extent
possible, no more generous in terms of the key terms (e.g. delivery mechanism, time to vesting, expected value
and performance conditions) than the incentive it is replacing. Where possible any such payments would be
facilitated through the Company’s existing incentive plans, but, if not, the awards may be granted outside of these
plans, as permitted under the Listing Rules, which allow for the grant of awards to facilitate the recruitment of an
Executive Director.
In the case of an internal appointment, any variable pay element awarded in respect of the prior role will be
allowed to continue according to its original terms or adjusted as considered appropriate to reflect the new role.
•
Motorpoint Group PLC | Annual Report and Accounts 2023
9 9
Financial StatementsStrategic ReportGovernance R E M U N E R AT I O N P O L I C Y C O N T I N U E D
External directorships
Executive Directors are permitted to take on external non-executive directorships at other listed companies,
though normally only one other appointment, to bring a further external perspective to the Group and help in the
development of key individuals’ experience. In order to avoid any conflicts of interest, all appointments are subject
to the approval of the Nomination Committee. Executive Directors are permitted to retain the fees arising from any
appointments undertaken.
Service contracts and payments for loss of office
The terms of Directors’ service contracts and letters of appointments are available for inspection at the Company’s
registered office.
Director
Executive Directors
Mark Carpenter
Chris Morgan
Non-Executive Directors
John Walden
Mary McNamara
Adele Cooper
Keith Mansfield
Date of contract / letter
Date of expiry
Notice period by Company or Director
12 May 2016
11 January 2021
N/A
N/A
10 January 2022
10 January 2025
14 May 2019
14 May 2025
6 March 2020
6 March 2026
20 May 2020
20 May 2026
9 months
9 months
3 months
3 months
3 months
3 months
The remuneration related elements of the current contracts for Executive Directors are as follows:
Provisions
Treatment
Termination
payment
The Company may (at its discretion) elect to terminate the employment by making a payment in lieu of
notice equivalent in value to the base salary which the Executive Director would have received during
any unexpired period of notice.
Mitigation
The payment in lieu of notice will be payable in monthly instalments (subject to mitigation, i.e.
reduced on a pound for pound basis if alternative employment / engagement is taken up during
the payment period).
Annual
bonus
There is no contractual right to any bonus payment in the event of termination although in certain
circumstances the Committee may exercise its discretion to pay a bonus at the normal time for the
period of active service and based on performance assessed after the end of the financial year. The
holding period in respect of deferred shares, if applicable, will normally be retained.
Share
awards
The default treatment for Restricted Shares under the Performance Share Plan rules is for all
unvested awards to lapse in full on cessation.
However, if the participant ceases to be an employee or a Director within the Group because of his /
her death, injury, disability, retirement, redundancy, their employing company or the business for which
they work being sold out of the Group or in other circumstances at the discretion of the Committee,
then his / her award will normally vest on the original scheduled vesting date (except in the case of
death, where the default position will be for the award to vest on cessation of employment).
The default position in this case is that an award will vest subject to: (i) the assessment of the
performance underpin over the measurement period; and (ii) the prorating of the award by
reference to the period of time served in employment during the normal vesting period. However,
the Committee can decide to allow early vesting and / or reduce or eliminate the prorating of an
award if it regards it as appropriate to do so in the particular circumstances.
Other
Outstanding shares or awards under an all employee share plan will vest in accordance with the
terms of the plan and HMRC legislation.
The Committee may pay any statutory entitlements or settle or compromise claims in connection
with a termination of employment, where considered in the best interest of the Company.
Outplacement services and reimbursement of legal costs may also be provided.
1 0 0 Motorpoint Group PLC | Annual Report and Accounts 2023
Legacy arrangements
In approving this Directors’ Remuneration Policy, authority is given to the Company to honour any commitments
entered into with current or former Directors that have been disclosed to and approved by shareholders in
previous remuneration reports. Details of any payments to former Directors will be set out in the annual report on
remuneration as they arise.
Consideration of pay conditions within the wider team
When making decisions on executive remuneration, the Committee takes into account pay conditions for the
Company as a whole, although it has not, to date, consulted directly with employees on this subject. The Committee
will review its approach to engaging with employees on remuneration matters and in particular to explain how the
pay for senior executives aligns to the pay practices for the workforce generally.
The Group has a strong ‘team culture‘ and accordingly there is consistency in how packages are structured across
the whole Senior Management team, with all Executive Directors and Senior Managers participating in the same
annual incentive plan.
However, there are some differences in the structure of the remuneration policy for the Executive Directors
compared with other Senior Managers, which the Committee believes are necessary to reflect the different levels
of responsibility. The two main differences are the increased emphasis on variable pay for Executive Directors and
a greater focus on long term alignment (through additional holding periods for the long term incentive awards and
minimum shareholding guidelines). Within the wider group, all employees receive salary, benefits and pension and
are eligible to receive an annual bonus. Periodic reviews against market data are undertaken to ensure an appropriate
cascade of remuneration throughout the Group.
We are proud to be a Real Living Wage employer and this year, to provide additional support to our lower employees,
we have brought forward the increase to the RLW from the recommended date of 1 April 2023 to 1 January 2023.
Shareholder Views
The Committee values the views of the Company’s shareholders and takes into account guidance from shareholder
representative bodies.
As part of the Remuneration Policy review, the Committee engaged with the largest shareholders and the proxy
advisory bodies to understand their views on the proposed policy. Further details of this engagement are set out in
the Annual Statement.
Shareholder feedback received in relation to the AGM, as well as any additional feedback received during the year,
is considered as part of the Company’s annual review.
Motorpoint Group PLC | Annual Report and Accounts 2023
1 0 1
Financial StatementsStrategic ReportGovernance A N N U A L R E P O R T O N R E M U N E R AT I O N
This part of the report has been prepared in accordance with Part 4 of The Large and Medium sized Companies and
Groups (Accounts and Reports) (Amendment) Regulations 2013 (as amended in 2018 and 2019) which amended
The Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008, and 9.8.6R of the
Listing Rules. The annual report on remuneration, including the Chair's annual statement, will be put to an advisory
shareholder vote at our 2023 AGM.
Committee membership and attendance
During the year the Committee comprised:
Mary McNamara (Chair)
Adele Cooper
Keith Mansfield
The Chair and CEO attend meetings by invitation but are not members of the Committee.
The Committee met five times during the year and attendance is set out in the table on page 81.
Advice to the Committee
The Committee receives information and takes advice from inside and outside the Group. Internal support is provided by
the Company Secretary. The CEO and any other Director or employee may be invited to attend Committee meetings by
the Chair where relevant. No individual is present when matters relating to his or her own remuneration are discussed.
Following a formal review by the Committee during 2020, Korn Ferry was appointed as adviser to the Committee.
Korn Ferry is a signatory to the Remuneration Consultants’ Code of Conduct and has confirmed to the Committee
that it adheres in all respects to the terms of the Code. Fees paid to Korn Ferry during the year were £38,108 (ex VAT),
which reflected the applicable hourly rates agreed with Korn Ferry. The Committee is satisfied, following a discussion
involving all the members of the Committee, that the advice it received is objective and independent. Korn Ferry did
not provide any other services to the Company during the year.
Remuneration in FY23
Directors’ single figure of remuneration (audited)
The table below shows the aggregate emoluments earned by the Directors of the Company during FY23 and also sets
out the comparative information for FY22.
Mark Carpenter
Chris Morgan
John Walden
Mary McNamara
Adele Cooper
Keith Mansfield
Period
FY23
FY22
FY23
FY22
FY23
FY224
FY23
FY22
FY23
FY22
FY23
FY22
Salary/fees
(£’000)
Benefits1
(£’000)
Pension
(£’000)
Total fixed
remuneration3
(£’000)
RSA2
(£’000)
Bonus
(£’000)
Total variable
remuneration
(£’000)
Total
(£’000)
360
350
263
255
200
144
58
53
49
40
52
47
2
2
2
2
0
0
0
0
0
0
0
0
36
35
8
8
0
0
0
0
0
0
0
0
398
387
273
265
200
144
58
53
49
40
52
47
270
262
197
191
0
0
0
0
0
0
0
0
140
329
102
240
0
0
0
0
0
0
0
0
410
591
299
431
0
0
0
0
0
0
0
0
808
978
572
696
200
144
58
53
49
40
52
47
1. Relates to provision of family private medical insurance.
2. The face value on grant of the RSA awards is shown in the table above as there are no performance conditions other than underpins
tested on vesting.
3. This also includes the value of the discount offered in relation to the SAYE options granted during the year, which was worth £400.
4. From John Walden’s appointment on 10 January 2022, and includes a one-off fee of £100,000, the net amount of which has invested in
Company shares.
1 0 2 Motorpoint Group PLC | Annual Report and Accounts 2023
Details of variable pay earned in the year (audited)
Annual bonus
Executive Directors were eligible for a maximum annual bonus payment of 100% of salary, subject to PBT, market
share growth, customer and employment engagement measures, along with selected strategic objectives.
The table below sets out the performance conditions and targets that were set in relation to FY23 and the
performance achieved.
Weighting
Performance required
Threshold
Targert
Stretch
Payout of
element (% of
element
weighting)
Performance
achieved
15%
£20.5m
£21.5m
£23.65m
£(0.3)m
0%
+ve
80
+0.2%
82
+0.5%
+0.44%
84
83.5
17.5%
15.6%
74.7
76.7
78.7
71.0
Budget Budget +10% Budget +20%