Auto Trader hails record interim revenue, profit

Auto Trader said on Thursday that it has achieved its highest ever six-monthly revenue and profits following solid performances from both the trade and retail segments.

In the six months to 30 September, pre-tax profit rose to £150m from £66.2m, with revenue up 82% at £215.4m. Basic earnings per share came in at 12.63p, up 126%.

Auto Trader said the "abnormally high" rate of growth mainly reflects the Covid-related discounts it gave to its customers during the first wave of the pandemic early in calendar year 2020. A better comparison is that of two years ago, it said, against which revenue grew by 15%, with a greater number of customers using Auto Trader and choosing to spend more on the platform.

As the UK emerged from the most recent national lockdown in June, demand for new and used cars has been particularly strong, it said. "This demand has been fuelled by a catch up in transactions that didn't happen in 2020 due to Covid-related lockdowns, increased consumer interest in car ownership and good levels of consumer confidence."

For the full year, Auto Trader now expects modest year-on-year growth in retailer forecourt numbers and low double-digit ARPR growth on FY20 levels. Operating profit margins are expected to be in line with FY20 levels.

Chief executive officer 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."

At 0830 GMT, the shares were up 10.3% at 687.70p.