7th Nov 2019 08:30
(Alliance News) - Auto Trader Group PLC on Thursday lifted its dividend on the back of a 12% increase in first half profit and said it remains confident in meeting growth expectations for financial 2020 despite ongoing market uncertainty.
Shares in the Manchester-based company were up 3.8% at 569.60 pence each in London.
For the six months to September 30, Auto Trader recorded a 12% rise in pretax profit to GBP127.7 million from GBP114.5 million a year ago, on revenue of GBP186.7 million, up 6% on GBP176.8 million a year ago.
Operating profit grew 9% to GBP131.4 million, with margins rising to 70% from 68%.
The online automotive marketplace said average revenue per retailer per month rose 7% year-on-year to GBP1,951 in the first half from GBP1,826, with growth from product and price offsetting a small decline in paid retailer stock. Platform visits per month increased by 4% to 51.2 million in the interim period from 49.3 million a year ago.
Auto Trader expects average revenue per retailer per month growth to continue, albeit with a slightly increased headwinds from stock.
"We have had a good first half and have seen an even greater number of car retailers opting to partner with Auto Trader to access our growing consumer audience," said Chief Executive Trevor Mather.
"Despite ongoing market uncertainty, the board is confident of meeting its growth expectations for the year," Mather added.
Auto Trader has increased its interim dividend to 2.4p per share from 2.1p.
By Tapan Panchal; [email protected]
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