Auto Trader profits driven up to more than £105m by used car focus

Manchester-based digital car seller Auto Trader Group has bucked national the slowdown in motor sales by focusing on the used vehicle market to deliver a 10% increase in half-year pre-tax profits to £105.4m.

Revenue climbed 7% to £165m in the six months to September 30 as the company returned £70.3m to shareholders through £36.3m of share buy-backs and paid dividends of £34m.

Meanwhile, the company re-launched its retailer advertising packages in April and is continuing to develop its new car proposition for manufacturers, retailers and consumers alike, including the launch of a new “in-search” product helping manufacturers to target car buyers more effectively.

Chief executive 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.

“We remain focused on improving the car buying and selling experience for consumers, who can now benefit from our free valuations and finance tools, thousands of dealer and car reviews, and will soon be able to search for their next car based on monthly finance payments.

“The board is confident of delivering its growth expectations for the remainder of the year.”