Auto Trader results positive but investors still kicking the tyres

The price of shares in automotive marketplace firm Auto Trader (LON:AUTO) has dropped by 1.29% to 579.80p (as of 13:20 BST) despite management reporting a 15% improvement in profits before tax for the year ended 31st March. Revenues increased by 8% and management expect that the coming year will also see improvements in average revenues per retailer.

CEO Trevor Mather said: “We have achieved another strong year of revenue and profit growth driven by a line-up of products that are proven to improve the business performance of our retailer and manufacturer customers.

“We remain the most trusted marketplace for car buyers and offer the largest choice of both new and used cars following the recent addition of brand-new cars on Auto Trader, which are available immediately and at competitive prices.

“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“.