Auto Trader Group PLC (LSE:AUTO) reported a healthy jump in annual revenue but squeezed margins dented profitability.
The online car retailer said revenue in the year ended 31 March 2023 rose 16% to £500.2mln from £432.7mln, operating profit fell 9% to £277.6mln from £303.6mln and EPS dipped 2% to 25.01p from 25.61p. Group operating profit margins fell 15 percentage points to 55% from 70%.
The company said average revenue per retailer per month was up £227, or 10%, to £2,437, driven by both price and product levers, with the stock lever being flat.
Physical car stock on site was up 2% to 437,000 cars although new car listings declined to 25,000 on average from 29,000 the year prior.
Looking ahead, the firm said the new financial year has started well and the board is therefore confident of meeting its growth expectations for the year.
“We expect another good year of retailer revenue growth,” it said.
“We anticipate a slight decline in retailer numbers, mostly due to the full year impact of the disposal of Webzone Limited. The other revenue areas within the main Auto Trader business are likely to perform within a range of flat to low single digit growth,” Auto Trader said.
The firm also named Matt Davies as non-executive director, chair designate and as a member of the nomination committee.
The company proposed a final dividend of 5.6p, giving a total payout of 8.4p, up from 8.2p last year.