Car ads site Auto Trader Group PLC (LON:AUTO) reported a 15% increase in pre-tax profit for the year on stronger revenue and disposal gains.
Pre-tax profit rose to £242.2mln in the year to March 31 from £210.7mln last year, supported by £8.7mln in proceeds from the transfer of its retailer-to-retailer platform, Smart Buying, to joint venture partner Cox Automotive.
READ: Change of driver for Auto Trader as CEO Trevor Mather unveils retirement plans
Revenue increased 8% to £355.1mln, helped by the performance of retailers and home traders.
Retailer revenue increased 9% to £293.0mln, boosted by the launch of new products and higher yielding advertising packages.
Average revenue per retailer (ARPR) improved by 9% to £1,844 per month while average retailer forecourts were stable.
Cross platform visits per month, as measured by Google Analytics, grew 1% to 49.1mln.
The group proposed a final dividend of 4.6p per share, taking the total for the year to 6.7p, up from 5.9p last year.
Mixed outlook
"The new financial year has started well, and despite the continued wider market uncertainty, the board is confident of meeting its growth expectations for the year,” said chief executive Trevor Mather.
However, the company warned that it expects revenue from its manufacturing clients to decline in the first half due to challenges facing the industry.
It also expects operating costs for the year to rise by “low to mid-single” digits after rising 3% to £112.3mln last year.
On the upside, the firm predicted “another strong year” of ARPR growth and it does not foresee any issues with Brexit affecting its ability to provide services or to materially change its cost base.
In morning trading, shares dropped 1% to 581p.
In April, the group announced that Mather would retire as boss next March after nearly six years in the role.
“Assuming the company does not hit any major speed bumps between now and March 2020, Mather can look back on his time at the wheel with pride, steering the company through a successful IPO and a great start to life as a public company," said AJ Bell investment director, Russ Mould.