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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Auto Trader - Maiden results lead to upgrades

August 2015

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:
  • 303p
Auto Trader’s maiden results were strong with revenues and underlying operating profit rising 8% and 35% respectively to £256m and  £133.1m. Net debt was £528m (net debt / EBITDA: 3.4x (2014: 7.2x). Full page advert views advanced 7% to 226m per month while traffic is now nearly 70% from mobiles / tablets.Numis notes that the group will enjoy cyclical tail winds from the buoyant used vehicle market that will be reinforced by structural migration online as well as new products and services. In particular Numis picked out iControl, the group’s Managing tool that enables a retailer to optimise the pricing of its inventory, thereby dramatically increasing stock turn and ultimately profit.The bro ...

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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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