19th Jun 2015 06:36
LONDON (Alliance News) - Auto Trader Group PLC Friday expressed confidence for growth in its current year, as it posted a rise in pretax profit for its recently ended financial year in its maiden results since it listed on the London Stock Exchange in March.
The digital automotive seller raised GBP2.35 billion in its initial public offering earlier this year, and is set to join the FTSE 250 this coming Monday.
For the year to March 29, the company posted a pretax profit of GBP10.9 million, up from GBP3.7 million a year before, as revenue rose to GBP255.9 million from GBP237.7 million and administrative costs fell.
The company posted exceptional costs of GBP5.4 million related to its initial public offering and reorganisation.
Auto Trader attributed its revenue growth to a strong retailer revenue performance, growth in the average number of retailer forecourts to 13,452 from 13,129, and 6% growth in average revenue per retailer forecourt. It also cited growth in display advertising, as manufacturers have increased their advertising spend.
Additionally, the company's margins increased to 61% from 57% in the previous year.
Auto Trader has not proposed a dividend for the recently ended financial year, but intends to begin paying dividends in its current financial year.
The company said its new financial year has started well and in line with its expectations.
"Based upon healthy customer numbers; further revenue improvement from increased product penetration; combined with only modest cost base increases, the Board is confident of growth in the coming year," said Chief Executive Trevor Mather in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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