Auto Trader Group plc (LON:AUTO) rose on Friday after announcing that its free packages are continuing throughout May after the UK government prolonged the coronavirus pandemic lockdown.
To prevent the coronavirus from spreading, all businesses must be closed for another three weeks, the government said on Thursday.
READ: Auto Trader launches placing to provide support during coronavirus crisis
The online vehicles seller has already offered free advertising packages to retailers during April and that will now continue next month.
The FTSE 100-listed group previously revealed that customers have been rushing to place advertisements, resulting in a record number of vehicles displayed on the website - 540,000 as of March 31, compared to 480,000 at the same time last year.
However, the move is expected to drive up Auto Trader's debt.
“As our customers are not able to meaningfully trade, we will do what we can to support them such that when restrictions are lifted, they are able to get back to business,” the company's chief executive Nathan Coe said in a statement.
Analysts at Peel Hunt said the initiative was to be expected and this free period is likely to extend for three months.
Shares surged 3% to 437.2p on Friday morning.
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