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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Auto Trader

January 2018

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • AUTO
  • Price:
  • 343p
Autotrader, the UK’s largest automotive marketplace, continues to impress with revenues, pretax profit and eps rising 7%, 10% and 14% to £165m, £105.4m and 8.7p respectively. The group returned £70m to shareholders through share buy-backs and dividends, yet strong cash flow meant it still reduced net debt by £8m to £347m, leaving net debt / EBITDA at 1.55x versus 1.65x as at March ’17.Its largest division, Trade, which generates subscriptions from car retailers and home traders advertising their vehicles on the Auto Trader website, increased sales 8% to £139.4m. This was driven by a 10% increase in average revenue per retailer from £1,526 to £1,674 (ARPR) per calendar mont ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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