Auto Trader confident as record activity lifts annual sales

(Sharecast News) - Auto Trader has delivered a confident outlook alongside its annual results, with record numbers of both buyers and sellers using the new and used car platform. The company reported that group revenues rose 5% to £601.1m over the 12 months to 31 March.

Results were driven by 7% growth at the core Auto Trader platform to £564.8m, which outweighed a 12% decline in sales at the van-leasing division Autorama to £36.3m.

Group operating profits rose 8% to £376.8m, supported by an increase in group operating profit margins to 63% from 61% the year before.

"Despite broader macroeconomic uncertainties, the UK car market is in good health and we continue to deliver against our strategy to improve car buying and retailing," said chief executive Nathan Coe.

Regarding trade tariffs, Auto Trader said that while the duties will likely impact OEMs, the effect on the UK auto industry could be "favourable" if manufacturers see the country as an increasingly attractive location to sell new cars.

Nevertheless, the company said it continues to see "strong levels of demand" for used cars, with a record number of cross-platform visits and minutes spent on Auto Trader.

Meanwhile, the recent UK-US trade deal and the government's plans to soften the Zero Emission Vehicle mandate mean that new car registration volumes should be "well supported over the next two to three years", it said.

"We remain confident in the outlook for the business given our strong market position, the value we deliver for customers, and our unique data and technology capabilities," Coe added.