https://www.motabilityoperations.co.uk/Motability_Operations_2022_HYR_WEB.pdf
Financial performance
Revenue in the six months to March 2022
increased 6.7% to £2,313.9m (2021: £2,169.0m).
Within this:
• Rental income increased 4.3% reflecting
higher average customer numbers (with an
incremental 9,800 joining the scheme) and
the effect of the 0.5% uplift in mobility
allowances effective from April 2021. Rental
income in the year to March 2021 was also
net of £32m of insurance related rental
rebates, which distorts the year-on-year
comparison.
• Notwithstanding a lower volume of vehicles
sold – down 30,000 units compared with 2021
(a consequence of an increasing volume of
lease extensions for existing customers
pending the delivery of their new vehicles)
the proceeds from the disposal of operating
lease assets saw a 8.4% increase in the six
months to March 2022 compared with prior
year, reflecting the elevated sales values
achieved in the used-car market.
Profit for the period was £598.7m, representing
a 10.3% return on assets (above our long-term
target of 1.5%). This above target result is
primarily driven by two effects:
• A gain of £403.9m from vehicle sales (2021:
£78.4m), reflecting the buoyant used-car
market referenced above. The strength of
the used-car market can be directly linked
to the new-vehicle supply-side challenges
faced globally. This has resulted in significant
switching of demand to used cars. Our vehicle
remarketing operation has been able to
effectively capitalise on the conducive
demand conditions in the used-car market,
with average sales values of £15.5k (up 50%)
on prior year not only driving increased
revenue, but leading to crystallised profits
versus the net book value. Whilst this upside
is in part a result of used-car values
exceeding our previous forecast expectations,
this also reflects the realisation of a
proportion of the blocked appreciation which
was carried through the September 2021 year-
end (as signalled in the 2021 Annual Report
and Accounts).
• A £311.4m depreciation credit reflecting the
output of the March 2022 fleet revaluation
exercise outlined below.
The result for the first six months of trading
takes restricted reserves on the balance sheet
to £3,480.1m (March 2021: £2,444.7m) providing
headroom above our target position.