Auto Trader, the digital car selling and trading platform, is still finding growth even though auto sales are falling for the rest of the industry.
Revenues at the business jumped 8% in the year to March 31, with pretax profits in the period soaring 15% to £242.2 million. This also includes an £8.7 million profit from the sale of nearly half its stake in the business-to-business Smart Buying division.
Bosses did warn that growth is unlikely to be as fast next year and last, but added there were no concerns over Brexit to cause them any financial worries.
The development of hosting new car sales gives Auto Trader a new world to disruptEd Monk, Fidelity
However, the company warned that challenges facing the manufacturing industry – on Monday new data showed the sector contracted in May – is expected to hit the business, with reduced advertising spends.
The firm said: “Despite a tougher new car market, manufacturers and agencies continue to see the value in our marketplace to advertise their new cars to consumers, with spend up by 18%.
“However the short-term challenges faced by both of these customer types did impact our growth in the second half of the year.”
Read more here
Join us in Madrid, November 12-15 for the Global Online Marketplaces Summit.