It’s been a Rolls-Royce ride for investors who bought into Auto Trader Group at its flotation just over two years ago. Issued at 235p, the shares have raced ahead. Even after a modest sell-off yesterday, they are trading at 418½p, outpacing the FTSE All-Share index by almost 50 per cent.
The online platform that helps to match used-car sellers with buyers has produced another excellent year. Revenues are up by 9 per cent, underlying operating profit is up 19 per cent and cash generated is up by 18 per cent.
Auto Trader is a cash machine. Its monopolistic scale has ensured a wide moat, which its competitors have struggled to invade. As it said at its investor presentation, it receives 55.4 million visits a month
