Auto Trader accelerates into second half

Auto Trader was trading ahead of expectations in the latter half of the year, with the group updating the market on its operations in the four months since its interim results, on Wednesday.

The FTSE 250 automotive marketplace provider's board said it had performed well since 27 September, with a stronger-than-anticipated increase in both average revenue per retailer forecourt (ARPR), and consumer services revenue.

Auto Trader said the number of retailer forecourts advertising on its marketplace remained broadly flat, although costs had been well-managed, leading to further margin increases.

The board also said profits were continuing to be converted into cash at a high level, facilitating a planned reduction in net debt.

"Based on the group's performance for the first ten months of the year, the board currently anticipates full year underlying operating profit will be in the range of £169m-£171m, marginally ahead of current market expectations," Auto Trader's board said in a statement.

Auto Trader remained positive about the trading environment going forward, also noting that lock-up agreements entered into at the time of the initial public offering in March 2015 were coming to an end on 18 March 2016.

It was expected to reveal its results for the year to 27 March, on 9 June.