- Auto Trader shares are up more than 30% in the last year
Shares of Auto Trader Group rose sharply on Thursday to hit a record high after the company posted higher profits and revenue last year.
Group revenue rose 14 per cent to £570.9m, amid a “robust” second-hand car market that continues to enjoy higher demand than before the pandemic.
Sales at Auto Trader rose 12 per cent to £529.7m, while leasing specialist Autorama saw a 51 per cent rise to £41.2m.
Auto Trader Actions It jumped 12.4 per cent or 90.6 pence to 821.20 pence on Thursday, having risen more than 30 per cent in the last year.
On the rise: Shares in Auto Trader Group rose sharply on Thursday after the group posted higher profits and revenues last year.
Adjusted pre-tax earnings before interest, depreciation and amortization grew 14 per cent to £375.3 million, while pre-tax profits rose 18 per cent to £345.2 million.
The London-listed group said more than 75 percent of all minutes spent on automotive classifieds sites were spent on Auto Trader during the year, unchanged in 2023.
Comparable figures from retailers rose 1 per cent, after the impact of the Webzone sale the previous year was removed.
Average revenue per retailer grew 12 per cent to £2,721 on average per month, driven by continued adoption of additional products and services.
Auto Trader said the “robust” used car market seen in the year was expected to continue into the current year.
The group said: “Demand is resilient, cars continue to sell faster than before the pandemic and the supply of used cars has gradually improved.”
It added: “Trade prices softened in the final months of the calendar year, which subsequently affected retail prices, but monthly price movements have since stabilized in line with typical seasonal trends.”
It also noted that the current financial year had “started well” and forecast “another good year” of average revenue growth per retailer.
Nathan Coe, group chief executive, said: “This has been another strong year of financial, operational and strategic progress for Auto Trader.
“We are confident in our prospects for the coming year and, in the long term, we see significant opportunities to continue to grow our market and move more of the car buying process online.”
Keith Bowman, equity analyst at Interactive Investor, said: “The shares are not cheap having outperformed the FTSE 100 index over the last year, but while they may appear ‘up to speed’, Auto Trader appears to remain a central participation in the sector, and the consensus opinion of the city points towards strong control.’