9th Jun 2016 06:49
LONDON (Alliance News) - Automotive marketplace operator Auto Trader Group PLC on Thursday launched a rolling programme of share buybacks, as its annual pretax profit rocketed higher and underlying results also were strong.
Auto Trader said its pretax profit for the financial year to March 27 was GBP155.0 million, a massive rise on the GBP10.9 million it made the year before due to costs booked that year on its listing in London and higher financing costs for the group's debt. Operating profit, before the one-offs and finance costs, grew to GBP169.6 million from GBP133.1 million, up 27%.
Auto trader said its net external debt at the year-end fell to GBP392.6 million from GBP527.9 million, cutting its leverage and improving the group's financial position, in addition to trimming its finance costs substantially.
Thanks to that robust position, the group will start a rolling programme of share buyback with immediate effect, with the majority of the surplus cash left over after dividends have been paid to be returned to shareholders.
The group also declared a final dividend of 1.0p per share, meaning its total annual payout will be 1.5p.
Revenue grew 10% in the recent year to GBP281.6 million, up from GBP255.9 million the year before, as advertising views per month rose 7.5% and the number of retailer forecourts advertising on the service rose 0.5%. Average revenue per retailer forecourt per month rose 11% to GBP1,384.
"We are delighted with the progress that the group has made in its first full year as a public company," said Chief Executive Trevor Mather.
"The new financial year has started well, and the board is confident of delivering continuous improvement in both our consumer and retailer solutions, as well as our overall performance in the coming year," Mather added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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