1st Jun 2023 08:40
(Alliance News) - Auto Trader Group PLC on Thursday shared annual results that met market expectations, and announced a new chair.
The Manchester-based digital automotive marketplace said after a "comprehensive" search, it has selected Matt Davies to replace Ed Williams as its chair.
Davies is currently chair at bakery chain Greggs PLC, and was previously chief executive at Pets at Homes PLC, Halfords PLC, and Tesco PLC's UK & Republic of Ireland arm.
Davies will join the board from July 1, and take on the role of chair after the company's annual general meeting in mid-September, when Williams steps down from the board.
"The appointment is part of the board's long-term succession planning given Ed Williams will come to the end of his third three-year term in 2024," the company said.
Separately, Auto Trader announced its results for the financial year to March 31. Revenue climbed 16% year-on-year to GBP500.2 million, compared to GBP432.7 million.
The figure came in just ahead of company-compiled analyst consensus of GBP499.9 million. It was driven by Auto Trade revenue, which rose 9%, and also benefitted from GBP27.2 million from Autorama - a UK-based digital leasing platform focused on new vehicles the firm acquired last June.
Pretax profit fell 2.5% to GBP293.6 million from GBP301.0 million.
Operating profit fell 8.6% to GBP277.6 million from GBP303.6 million, thanks to a sharp increase in operating costs, which climbed 71% to GBP225.1 million. These were mostly related to the Autorama acquisition. The figure still came in a touch above consensus of GBP275.1 million, however.
"This year marks another strong financial and operational performance for Auto Trader. Given the challenging economic backdrop and historically low levels of vehicle supply, these results are a credit to our people and the close partnerships we've developed with our customers," said Chief Executive Officer Nathan Coe.
"The prospects for our marketplace are as strong as they have ever been, underpinned by the significant number of car buyers and retailers using Auto Trader. We have also made good progress on improving the new and used car buying experience by moving more of the journey online, on Auto Trader."
The firm proposed a final dividend of 5.6 pence per share, unchanged from the previous year. This would bring the total payout for the year to 8.4p, up slightly from 8.2p a year before.
The new financial year has started well, the company confirmed. It expects "another good year" of retailer revenue growth, though retailer numbers will see a slight decline due to the Webzone Ltd disposal.
Other revenue areas within the Auto Trader business will see flat or low single-digit growth. Operating profit margins should remain steady at 70%.
Shares in Auto Trader fell 1.7% to 619.40 pence each in London on Thursday morning.
By Elizabeth Winter, Alliance News senior markets reporter
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