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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Auto Trader - This July ‘15 idea has gained 150%

January 2024

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:
  • 742p
Auto Trader shares jumped £1 to over £7 after its interim results came in ahead of expectations. The group, best known for autotrader.co.uk, the UK’s largest website for used cars, said revenues rose 12% to £280.5m (Numis forecast: £270m) with adjusted operating profit £179.3m (Numis: £173.9m). That leads to eps of 14.3p (Numis: 13.7p). The performance was driven by the core business with average revenue per vehicle retailer (ARPR) up 12% to £2,783 while the number of dealer customers rose 1% to 13,710. Its market leading position alongside the scalability of the model meant operating margins were an impressive 71%. Autorama, the leading platform for aggregating vehicle leasing deals, which was acquired in March 2022 for up ...

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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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