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Auto Trader's growth 'exceeding expectations'

Auto Trader is projecting 11.5% annual growth as its efforts to drive average revenue per retailer and generate revenue from consumer services both exceed expectations.

In an ad hoc trading statement released four months ahead of its full year results in June the online automotive marketplace announced that efforts to reduce costs had also led to improvements in operating margins.

Auto Trader’s statement said that the business’ board now expects group operating profit to be in the range of £169m to £171m.

The statement said: “We are now forecasting revenue growth of 11.5% across the group to £285.2 million in 2016E compared to our previous forecast of £277.3 million with operating profit now at £170 million compared to our previous forecast of £157.8 million.”

Auto Trader did express concerns about the number of retailers taking up their online offering, however, stating that performance in this area had remained “broadly flat”, admitting that this was an area that the group may find growth difficult.

Below are details of Auto Trader's financial forecasts, as compiled by Zeus Capital:

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