Auto Trader profit and revenue rise, confident over outlook

Auto Trader reported a 10% jump in interim profit on Thursday as it expressed confidence in delivering its growth expectations for the rest of the year.

In the six months to the end of September, pre-tax profit rose to £105.4m from £95.5m in the first half a year ago, on revenue of £165m, up 7%. Meanwhile, operating profit rose 9% to £109.6m and the company declared an interim dividend of 1.9p per share, up from 1.7p.

Average revenue per retailer forecourt per month increased £148 to £1,674, driven by growth in stock, price and product.

Chief executive officer Trevor Mather said: “We have delivered good growth in the first half, as we continue to create a more efficient marketplace for car buyers, manufacturers and retailers. Our business has continued to perform strongly, underpinned by the successful launch of our retailer advertising packages in April. The new packages provide additional products for all customers and offer new opportunities for retailers looking to compete more effectively on the marketplace.

"The results highlight the resilience of our business considering the slowdown in new car transactions and a flat used car market. We will continue to benefit from the increased focus retailers are putting on the larger opportunity they see in used cars, where we are the clear market leader.”

Charlie Huggins, co-manager of the HL Select UK Growth Shares fund said: “This is a robust performance from Auto Trader. They dominate the market for used car listings, carrying far more vehicles for sale than any rival.

“Their technology skills are allowing them to push revenues ahead, even in difficult markets by pulling in eyeballs by the millions and offering dealers data and insights that help them make the most of their forecourts. It’s a winning model that we expect to carry on dominating its niche for years to come.”

At 0935 GMT, the shares were down 1% to 348.60p.