Auto Trader in the growth fast lane
DIGITAL automotive marketplace Auto Trader is celebrating spectacular results in the six months to September 27 with revenue up to £138.2m, up 8% (H1 2015: £127.5m).
Underlying profit for the company which has its largest office with 600 people on First Street in Manchester also soared 17% to £83m (H1 2015: £70.8m).
Basic earnings per share from continued operations were 5.98 per share (H1 2015: 0.95p).
Auto Trader, which forged a deal with growing online car finance provider Zuto in July, is benefiting from the buoyancy of the wider economy which has boosted both the new and used car markets.
After 43 consecutive months of growth, new car registrations in the UK reached their highest-ever September total at over 462 thousand units, as buyers took advantage of a range of competitive deals on the latest 65-plate.
The company – valued at £2.3bn when it floated on the LSE earlier this year – says its consumer audience is now five times larger than that of its nearest competitor, as measured by cross-platform visits.
It said advertisement view per month increased by 9% to 240 million (H1 2015: 220 million), while the number of retailer forecourts advertising with Auto Trader remained stable at 13,503 (H1 2015: 13,456).
Auto Trader Group chief executive Trevor Mather said: “Auto Trader has delivered a strong first half performance, as retailers, consumers and manufacturers alike are increasingly recognising the value of our marketplace.
“We continue to grow our audience of car buyers and develop products to add value to our retailers, helping them remain competitive and make informed decisions based on real-time market data, allowing them to buy and sell the right stock at the right price.
“We believe there is substantial opportunity to grow the business based on the increasing importance of the internet for automotive advertising, and the growing use of data to improve the efficiency and effectiveness of the industry.”
