Auto Trader hikes dividend as revenue, profit grow

Digital automotive marketplace Auto Trader reported a rise in operating profit for the first half as revenues surged and the company hiked its dividend, saying it is confident of delivering on its second-half expectations.

In the six months to 25 September, operating profit rose 21% to £100.6m from the same period a year ago, as revenue grew 11% to £153.9m.

Basic earnings per share rose to 7.65p from 5.98p and the company declared an interim dividend of 1.7p per share, up from 0.5p per share.

Meanwhile, net external debt was reduced to £359.5m from £457.4m.

During the half, cross-platform visits increased by 36% to 58.5m, with the consumer audience four times larger than that of its nearest competitor.

In addition, advert views were up 4% to 250m and average revenue per retailer forecourt per month was up 13% to £1,526.

Chief executive Trevor Mather said: "We have felt no discernible change in the competitive environment and no noticeable impact from Brexit to date.

"We remain focused on creating a simpler and more efficient marketplace, as well as enhancing the experience we deliver to consumers. Trust and transparency are key purchase drivers in today's consumer buying journey. Auto Trader's recent Market Report found that only 7% of consumers trust car retailers. We have therefore continued to improve our consumer experience by launching products and services such as dealer reviews and vehicle check that promote greater trustworthiness in retailers, as well as providing real time valuations that help to improve transparency in the car buying process.”

At 0811 GMT, the shares were up 3.8% to 400.60p.