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Auto Trader Group PLC on Thursday reported an annual earnings rise and anticipates more growth ahead.
In the year ended March 31, the Manchester-based vehicle marketplace reported a 65% revenue hike to £432.7 million from £262.8 million. Compared to financial 2020, largely pre-pandemic, revenue increased 17% from £368.9 million.
The chunkier year-on-year revenue rise stemmed from an easier comparative. Auto Trader noted it provided free advertising to retailer customers in April 2020, May 2020, December 2020 and February 2021 amid the Covid-19 pandemic. It also had provided a discounted rate in June 2020.
Auto Trader's pretax profit jumped 91% to £301.0 million from £157.4 million. It was up 20% from financial 2020's £251.5 million.
The company's annual payout totalled 8.2 pence per share, up 64% from 5.0p.
Average revenue per retailer surged 67% to £2,210 from £1,324. ARPR is the average monthly revenue generated from retailer forecourts divided by the average monthly number of retailers.
Looking ahead, it expects ‘another good year of ARPR growth’. It also expects operating profit margins to be consistent year-on-year at 70% despite pressure on costs.
‘Despite pressure on costs, we anticipate operating profit margins to be consistent year-on-year at 70%,’ Auto Trader said.
Chief Executive Officer Nathan Coe said: ‘Despite the current high levels of economic uncertainty and industry change, we enter the year with good reason for both confidence and optimism.’
Auto Trader shares were up 2.7% at 581.40 pence each on Thursday morning in London.
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