Auto Trader has reported a 14% increase in revenue to £570.9m in the year to 31 March.

The online car broker’s group operating profit has climbed to £348.7m in its latest full year results, which is up 26% on last year.

Auto Trader stated that both its marketplace and competitive position have strengthened over the past year, with record numbers of buyers and sellers using the group. It was 10 times larger than its nearest classified competitor and the group also revealed that UK retailer forecourt numbers were up 1%.

According to Auto Trader CEO, Nathan Coe, more than eight in 10 car buyers now use Auto Trader during their car buying journey, with two thirds of buyers only using Auto Trader.

“Our data and technology continue to underpin the UK automotive industry and we are constantly innovating to help our retailers access the very best tools to achieve their business goals,” Coe added.

“We are confident in our prospects for the year ahead and, in the longer term, we see significant opportunities to continue growing our marketplace and to move more of the car buying process online, on Auto Trader.

“As ever, I would like to thank our people, customers and the UK's car buyers for continuing to place their trust in us.”

Auto Trader also reported that its average revenue per retailer (ARPR) climbed by 12% to £2,721 on average per month, as customers took up additional products and services.

A final dividend of 6.4p per share has also taken the annual payment up 14% to 9.6p, with net bank debt down to £11.3m from £43.4m a year ago.

Equity analyst at interactive investor, Keith Bowman, commented: “High interest rates mean it can still be expensive for people to finance the purchase of a vehicle, and it’s interesting to see Google taking an interest in the UK motoring market. Costs generally for businesses also remain elevated, while potential for forecourt consolidation persists as operators such as Cargiant and Motorpoint look to grow.

“On the upside, Auto Trader is still the dominant market player and continues to spend on innovation.

“The shares are not cheap after outperforming the FTSE 100 index over the last year, but while they may appear to be ‘up with events’, Auto Trader looks to remain a core holding in the sector, with consensus city opinion pointing towards a strong hold.”

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