Auto Trader profits hit £171m 27 | 06 | 2016

AUTO TRADER HAS reported a 19% rise in underlying profits to £171.3 million, on turnover up 10% to £281.6m, in the year ending 27 March 2016. During the 12 months, the UK classified car sales behemoth cut its net debt by £135.3m to £392.6m.

Significantly, in its first full year operating as a public company, it also saw the average revenue per retailer forecourt per month rose 10.5% to £1384, and the number of retailer forecourts advertising on the portal grow 0.5% to 13,514.

During the year, there was also a 38% increase of customer valuations on Auto Trader, to 13.7 million. A total of 30.1 million trade valuations were also conducted

Last year the company launched a new part-exchange tool, and Auto Trader argues that part-exchange is the most efficient way for retailers to acquire stock and that giving customers real-time valuations on their part-exchange introduced greater transparency at the dealership.

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The tool has been a sizeable success, with more than 60% of all classified retailer adverts now featuring it.

“We are delighted with the progress the group has made in its first full year as a public company,” Trevor Mather, chief executive of Auto Trader Group, said.

“We have continued to enhance the value 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.”

And according to its outlook statement, Auto Tader is expecting more success this year.

“The new financial year has started well,” the statement said. “Based upon having the largest consumer audience, healthy relationships with our retailers, a robust car buying market and a modest cost base decrease, the board is confident of further growth in the coming year.”

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Jim McGill