Used car supermarket Motorpoint’s shares skidded 20 per cent this morning as the company warned it was being hit by Brexit uncertainty.
The company, which floated on the London Stock Exchange in May, reported 11 per cent revenue growth in the six months to September in a trading update today.
But, at the time of writing, Motorpoint’s share price had fallen by more than 20 per cent to 133p after it referred to its Brexit struggles.
The trading update said: “Because of the uncertainty around the result of the EU referendum, management has invested in margin to protect the group’s good level of stock turn, and managed its stock levels carefully.
“Accordingly, the volume and margin performance in the first half is behind original management expectations.”
Motorpoint floated on the London Stock Exchange’s main market at a time when many other companies were understood to be holding back from initial public offerings (IPOs).
The company’s float price in May was 200p. After rising to above 230p, the share price dropped after the Brexit vote and is now down nearly 70p, or 35 per cent, on the original 200p.
(Share price chart includes this morning's drop to 132p)