Auto Trader shares drive to top FTSE 100 after bullish results
Auto Trader shares soared nearly eight per cent this morning to top the FTSE-100 amid record demand for the online automotive marketplace’s services.
Revenues increased nine per cent to £259.4m for the six months to October as the firm noted “record levels” of buyers, with sales quicker than pre-pandemic levels.
The Manchester firms £200m acquisition of Autorama in 2022 also appears to be bearing fruit, with that segment reporting an 82 per cent surge in sales, although it remains marginally in the red.
Group operating profit rose 10 per cent to £164.6m, while earnings before interest, tax, depreciation and amortization hit £182.1m, up from £167.7m.
The strong performance rewarded shareholders with a bumper 3.2p interim dividend, up from 2.8p last year.
Nathan Coe, Chief Executive Officer of Auto Trader, said: “It has been a strong start to the year with more buyers spending more time and completing more of their car buying journey on Auto Trader.”
“We are working in partnership with record numbers of retailers and manufacturers, who are turning to our platform as the most effective and efficient way to source, price and sell their vehicles,” the CEO added.
Amid the record numbers, average revenue per retailer rose 12 per cent, which the company said was down to “strong adoption” of additional products and services.
Auto Trader has benefitted from a broader revival in the UK’s new and used car market following years of supply chain disruption caused by the global chip shortage. Shares are up over 30 per cent in the year to date.
Fresh figures from the Society of Motor Manufacturers (SMMT) and traders this morning showed a 5.5 per cent growth in the used market, a third consecutive quarterly increase.
Auto Trader said it expects margins to increase year-on-year, with the outlook for its Autorama segment remaining unchanged.