LSE newcomer Auto Trader hits profits and revenue fast lane

MANCHESTER-based Auto Trader Group, which launched on the LSE a year ago with a valuation of £2.35bn, has seen revenues climb 10% to £281.6m (2015: £255.9m) in its first 12 months as a listed company.

The group – the UK’s largest digital marketplace for vehicles – also reported its underlying operating profit had risen 19% to £171.3m (2015: £144.1m) for the year ended March 27.

Basic earnings per share from continuing operations rose to 12.67p per share (2015: 0.85p). Meanwhile, its operating cash flow was up 30% to £177m (2015: £135.8m).

The group’s proposed final dividend was 1p per share, totalling 1.5p per share for the year.

Auto Trader said its consumer audience was six times larger than its nearest competitor, as measured by cross-platform visits. Adverts views per month increased by 7.5% to 243 million.

Chief executive Trevor Mather said: “We are delighted with the progress that the group has made in its first full year as a public company.

“We have continued to enhance the value that we deliver to our vehicle retailer and manufacturer customers, not only by providing them with the largest and most engaged marketplace in which to market their vehicles, but also by giving them the tools to help them run their own businesses more effectively.

“Auto Trader remains the number one choice for consumers when they are looking to buy their next car. We are focused on making the whole car buying process easier and less stressful for consumers. 

“We do this by using our own data and market insight to enhance our existing products and create innovative new solutions that help our customers win in the marketplace.

“The new financial year has started well, and the board is confident of delivering continuous improvement in both our consumer and retailer solutions, as well as our overall performance in the coming year.”