Auto Trader’s profits in the fast lane

AUTO Trader, the newly-listed online car sales group, has revved-up its annual profits as its promising start to life as a listed company continued.

The company, based at First Street in Manchester city centre, floated on the main market earlier this year valued at £2.35bn. Since its IPO in March shares have risen nearly 15%.

In the year to March 29, revenues rose 8% to £255.9m as the group, which has transformed fron being a printed weekly title continued to make headway in the digital landscape.

Chief executive Trevor Mather hailed a “strong year” as operating profits surged 35% to £133.1m.

He said: “Growth has mainly come from providing greater value to retailers in a marketplace where consumers are increasingly researching their next vehicle purchase online.”

He added: “The new financial year has started well and in line with the board’s expectations. Based upon healthy customer numbers; further revenue improvement from increased product penetration; combined with only modest cost base increases, the board is confident of growth in the coming year.”
 
Bottom line profits showed an increase too, nearly trebling from £3.7m to £10.9m.

The group was floated by private equity firm Apax Partners 12 months after it took full control of Auto Trader, by buying Guardian Media Group’s 50.1% stake.

The group said that in line with guidance at the IPO it would begin paying dividends to investors in 2016.

As well as taking the company on to the stock market, the previous 12 months has seen considerable change within the business.

It moved from eight different offices across the country into two new offices in Manchester and London.  As part of this relocation it has consolidated its five call centres into one contact centre, based in Manchester.

It said the move to just two offices has “had huge benefit in terms of reinforcing the group’s culture and promoting the right customer-centric focus amongst employees”.