Motorway's 2022 operating loss reaches £43.6m

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【Summary】Online used car marketplace Motorway reported an operating loss of £43.6m in 2022, in line with its investment plans. Despite the loss, the company saw the value of products sold on its platform rise to £1.7bn, with revenues of £41.2m. The increase in losses was attributed to significant marketing activity and expanding staff numbers. Motorway, which has raised over £200m in fundraising rounds, expressed confidence in its significant cash reserves and access to finance.

FutureCar Staff Oct 04, 2023 9:24 AM PT

Motorway's 2022 operating loss reaches £43.6m

Operating losses at online used car marketplace Motorway reached £43.6m in 2022, but the company's management assured that this was in line with their plans. Motorway operates a website that connects private car sellers with a network of 5,000 buying car dealers, and the value of the products sold on its platform increased to £1.7bn. According to the accounts filed at Companies House, the company generated revenues of £41.2m from these sales, which is more than double the previous year's figure of £19.8m. The gross profit amounted to £35.9m. However, due to significant marketing activity and an increase in staff numbers, Motorway incurred an operating loss of £43.6m, up from the previous year's loss of £12.5m.

Motorway explained that the operating loss included a non-cash adjustment of £5.1m related to share-based payments of share options granted to employees. The company emphasized that these losses were in line with its investment plans. Motorway is a high-growth digital disruptor and has successfully raised over £200m in four fundraising rounds. As a result, the company stated that it has significant cash reserves and access to finance if needed to cover ongoing operations and future developments.

Tom Leathes, CEO and Co-founder of Motorway, expressed his pride in the company's impressive growth in 2022, despite the challenging macroeconomic environment characterized by the energy crisis, rising inflation, and cost of living challenges throughout the UK. The Motorway team has expanded to over 400 staff members based in London and Brighton. Recently, the company announced its acquisition of Total Car Check. Looking ahead, Leathes expressed excitement for the future of Motorway, noting that the business has continued to accelerate in 2023 in terms of sales and unit economics. He highlighted the launch of new products and features, including Motorway Pay, a hassle-free service aimed at making car purchases from consumers easier than ever. Leathes also mentioned the acquisition of Total Car Check, which further strengthens the platform.

No dividends were paid out during the 2022 financial year, and the highest-paid director received emoluments of £180k. Leathes reflected on the early days of Motorway when it was just a three-person team back in 2017, emphasizing the company's vision for the future of the used car market. He acknowledged that while they have made significant progress, there is still much work to be done to improve used car transactions for car dealers and consumers in the coming months and years.

In addition to its financial performance, Motorway received recognition in the industry. The company won the Car Dealer Power Award for the Stock Acquisition category in an online event. Furthermore, Motorway was the subject of a special Car Dealer Investigation video that chronicles its journey from its inception to becoming a disruptor in the used car market.