Auto Trader revs up with record profits of £150m
AUTO Trader has reported its highest ever half-year revenue and profits as consumer engagement and retailer numbers hit record levels.
The Manchester-headquartered listed company has posted a revenue of £215.4m for the period to the end of September 2021, up from £118.2m, while its pre-tax profits surged from £66.1m to £150m.
The number of employees also jumped from 893 to 941 due to the acquisition of Auto Convert in July 2020.
Chief executive Nathan Coe said: “Early in the pandemic we acted decisively to protect our people, customers, and business.
“As a result of these actions, we have emerged as a stronger business which can be seen in our results for the first half of this financial year.
“The number of people using Auto Trader to buy their next car is at record levels, more retailers are choosing to partner with us, and our competitive position has strengthened.
“This positions us well as we look to partner with retailers to bring more of the car buying journey online, which we believe will provide significant long term growth opportunities.”
On its future outlook, the company added: “The board is confident for the
second half of the year.
“The majority of revenues are recurring in nature and most of the significant growth events for the year have been successfully delivered in the first half.
“Notable events were our annual pricing event, the launch and initial uptake of new products, which have occurred alongside low levels of retailer churn.
“For the full year, we now expect modest year-on-year growth in retailer forecourt numbers and low double-digit ARPR growth on FY20 levels.
“The stock lever, which shows the year-on-year movement, is likely to represent a small headwind for the full year, as we lap a strong second half last year.
“Operating profit margins for the full year are expected to be in line with FY20 levels.”