CAR BOOST SALE
Auto Trader sees its profits soar by a fifth as second-hand motor market booms
Four out of five second-hand car buyers turn to Auto Trader
BOOMING second-hand motor sales helped boost the profits of online car marketplace Auto Trader by a fifth.
Used vehicles are selling quicker than before the pandemic — as high prices put hard-up customers off buying a new one.
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Four out of five second-hand car buyers turn to Auto Trader when searching for a motor, according to its figures.
The data indicates that some two-thirds use the site exclusively.
That helped profits climb 18 per cent to £345million for the year to March 31.
And revenues rose by 14 per cent to £570million, aided by a 12 per cent jump per retailer to £2,721 a month as customers bought products and services.
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Boss Nathan Coe said: “This has been another year of strong financial, operational and strategic progress.”
He said he is “confident in our prospects for the year ahead and, in the longer term, we see significant opportunities to continue growing our marketplace”.
But there are industry concerns — with rival online car seller Cazoo falling into administration earlier this month.
Auto Trader also identified a risk of new competition from online giant Google, which recently launched a vehicle-advertising service.
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It said: “There is a risk that this could gain traction.”
Auto Trader was hit by £8.8million losses from its car rental business Autorama as the leasing market remained tight.
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But the stock market liked the company’s figures — and pushed the share price up to a new record high. It jumped 15 per cent to 840p.
Keith Bowman, equity analyst at Interactive Investor, said: “Auto Trader is still the dominant market player and continues to spend on innovation.
“More and more dealers are trialing its Deal Builder product, which allows car-buyers to value their part-exchange vehicle, apply for finance, and reserve a vehicle online.”
DOCKED MARTENS: £25M CUTS
BOOT brand Dr Martens is looking to slash £25million of costs after its profits slid by 43 per cent to £97million last year.
The British business has struggled in the US, leading it to issue a series of profit warnings.
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It said it hoped to cut costs through “organisational efficiency and design, better procurement and operational streamlining”.
Boss Kenny Wilson said: “I am confident the actions we are taking as we enter this year of transition will put us in good shape for the years ahead.”
But analysts AJ Bell said: “Dr Martens looks like a ripe takeover target.”
CALL IT A NIGHT
BAR owner Nightcap has walked away from a potential rescue deal for troubled rival Revolution Bars.
It said it was “disappointed” its merger bid was rejected by the larger hospitality chain.
But analysts AJ Bell said: “Putting two weak things together doesn’t make a strong entity, it merely doubles the problem.”
Revolution, which also runs the Revolucion de Cuba and Peach Pubs brands, launched sale and restructure plans last month, with £12.5million fund-raising and closing 18 venues.
ORE OVER NOW
AUSTRALIAN mining giant BHP has given up its bid for UK rival Anglo American.
The companies had been in talks over a £39billion bill which would have created the world’s biggest copper miner.
But the firms failed to agree a structure for the joint business, with Anglo unhappy about BHP’s demand to sell its South African operations.
BHP boss Mike Henry said: “We were unable to reach agreement.”
Anglo also had plans to break up operations, including ditching diamond, platinum and coal mines.
RETAIL footfall fell again in May — by 3.6 per cent on the year before — as shoppers were not tempted into stores despite bank holidays and better weather, according to the British Retail Consortium.
It was better than April’s 7.2 per cent drop.
DE LA RUE IN MONEY SPLIT BID
PASSPORT and money-maker De La Rue plans to flog off parts of the firm.
The Basingstoke business, which prints banknotes for the Bank of England as well as several foreign countries, revealed it has held talks with “a number of parties”.
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Chairman Clive Whiley said he will give an update in July.
Its profits slumped last year as demand fell because central banks stockpiled cash in the pandemic.
Meanwhile it’s been hit by the growing popularity of digital banking and contactless payments.
However, it designed the new King Charles III polymer banknotes in collaboration with the Bank of England and said several contracts have recently been renewed.
It consolidated into two divisions: one focusing on the growing demand for polymer notes and the other on its authentication business, which makes holograms and other security feature.
SIP, SIP HOORAY
SHARES in direct-to-consumer online retailer Virgin Wine bubbled up 7 per cent yesterday after it announced a share buyback.
In other words, it is investing in itself — which pleased the market.
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The AIM-listed company was established by Richard Branson in 2000 but the Virgin brand tycoon flogged it five years later.
The firm later went through a management buy-out.
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