Motorway's Operating Loss for 2022: £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 this, the company generated revenues of £41.2m, more than double the previous year, and saw the value of products sold on its platform rise to £1.7bn. The losses were attributed to significant marketing activity and expanding staff numbers.

FutureCar Staff Oct 04, 2023 6:19 AM PT

Motorway's Operating Loss for 2022: £43.6m

Operating losses at online used car marketplace Motorway reached £43.6m in 2022, which the company claims is in line with their plans. Despite the losses, the value of products sold on the platform increased to £1.7bn. According to recently filed accounts at Companies House, the firm generated revenues of £41.2m from these sales, more than double the previous year's figure of £19.8m. Gross profit amounted to £35.9m, but due to significant marketing activity and expanding staff numbers, the company experienced an operating loss, up from £12.5m the previous year.

Motorway attributed part of the operating loss to a £5.1m administrative expense related to non-cash adjustments for share-based payments to employees. However, the company insists that these losses are in accordance with their investment plans. As a high-growth digital disruptor, Motorway has raised over £200m in four fundraising rounds, resulting in significant cash reserves and access to finance for ongoing operations and future developments.

Tom Leathes, CEO and Co-founder of Motorway, expressed pride in the company's growth in 2022, despite the challenging macroeconomic environment, including the energy crisis, rising inflation, and cost of living challenges throughout the UK. With a team of over 400 staff based in London and Brighton, Motorway recently acquired Total Car Check and continues to accelerate its growth in 2023. Leathes emphasized the company's strong path to profitability, fueled by significant funding reserves and innovative new products and features, such as Motorway Pay.

No dividends were paid out during the 2022 financial year, and the highest-paid director received emoluments of £180k. Leathes acknowledged that while Motorway has made significant progress since its launch in 2017, there is still much to be done to improve used car transactions for both car dealers and consumers in the future. Motorway was recognized with the Car Dealer Power Award for the Stock Acquisition category and was the subject of a special Car Dealer Investigation video highlighting its growth and impact on the used car market.