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(Alliance News) - Auto Trader Group PLC on Thursday proposed no final dividend for its recent financial year, as it looks to preserve cash amid the Covid-19 outbreak, despite reporting a solid annual performance.
For the year that ended in March, the Manchester-based automotive marketplace reported a pretax profit of GBP251.5 million, up 3.8% from GBP242.2 million the year before, partly due to a fall in finance costs to GBP7.4 million from GBP10.2 million.
This was on revenue that grew by 3.9% year-on-year to GBP368.9 million from GBP355.1 million, with average revenue per retailer increasing by 5.7% to GBP1,949 from GBP1,844, as growth from products and pricing more than offset the reduction in stock.
Revenue as a whole was lifted by a 6% rise in Trade to GBP324.3 million and a 1% increase in Consumer Services to GBP28.3 million, partly offset by a 28% drop from the Manufacturer & Agency division to GBP16.3 million.
Physical car stock on site rose by 4% to 478,000 for the year, while the number of retailer forecourts using Auto Trader's marketplace rose by 1% to 13,345.
As a result of declaring no final dividend, Auto Trader's total annual dividend stays at 2.4 pence per share, down 64% from 6.7p the year before.
Looking ahead, Auto Trader said for the first quarter of its current financial year to date, market demand has reached high levels, and used car pricing has remained strong as retailers reopen their showrooms.
However, despite the increased number of vehicles, the number of retailers has declined, a loss not offset by a return to normal levels for new business.
"We are pleased with our achievements in the past financial year, however we recognise these have been well and truly surpassed by the events of the past few months. Through this time, we have been absolutely committed to supporting our people and customers in the face of the most challenging conditions ever experienced by our company or industry," said Chief Executive Officer Nathan Coe.
"We've been encouraged by the strong initial bounce back in used car demand, and whilst the short-term outlook remains uncertain, we believe the case for moving more of the car buying process online is stronger than ever. We are looking forward to making this a reality with our customers in the years ahead," Coe added.
Shares in Auto Trader were down 2.2% at 514.00 pence on Thursday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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