Auto Trader revs up flotation plans
AUTO Trader, the online car market place, has revealed plans to list on the Stock Market.
The Manchester and London-based company, recently said to be in the sights of Hellman & Friedman, a US private equity giant, could be valued at £2bn.
Based at First Street in the city centre since last year, Auto Trader employs 600 here, making Manchester its largest office location. It is currently owned by private equity firm Apax, which bought-out its former partner Guardian Media Group last year.
After ceasing the publication of its weekly magazine, innovation in its online market place has driven growth.
In the 52 weeks to March 30 2014 it generated continuing revenues of £237.7m and adjusted Underlying EBITDA of £136.1m. Since then it has demonstrated around 8% revenue growth and 16% adjusted underlying EBITDA growth over the 39 week period to 28 December 2014.
Ed Williams, chairman said: “Auto Trader has been the place people think of to buy or sell their next car for generations. Early and sustained investment in the internet and digital technologies has allowed our customers to benefit from the advantages of the internet, whether it is car buyers finding the widest possible range of currently available vehicles, or car sellers reaching the largest number of potential buyers.
“As one of a handful of long-standing UK companies to have become a household name in the digital world, now seems the ideal time to join the UK stock market. This represents another step in ensuring that Auto Trader can serve future generations of vehicle buyers and sellers.”
Trevor Mather, chief executive added:”I feel truly privileged to lead this business and I am very proud of our employees who have built an incredibly strong and trusted brand together with a hard working and innovative digital culture. I am both confident and hugely enthusiastic about our future, as we embark on the next stage of our growth as a public company.”
