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Annual Report and Financial Statements 2016

Leading the way

A strategy to succeed in today's digital automotive marketplace

Business at a glance

Financial Highlights

£281.6m

Revenue up 10%

(2015: £255.9 million)

£171.3m

Underlying operating profit up 19%

(2015: £144.1 million)

£169.6m

Reported operating profit up 27%

(2015: £133.1 million)

12.67p

Basic earnings per share from operations

(2015: 0.85p)

£177.0m

Operating cash flow up 30%

(2015: £135.8 million)

£135.3m

Reduction in net external debt to £392.6 million

(March 2015: £527.9 million)

1.5p

Total dividend per share

(interim 0.5p plus final 1.0p)

97%

Operating cash conversion

(2015: 87%)

2.2x

Leverage

(March 2015: 3.4x)

Operational Highlights

x6

Larger consumer audience compared to nearest competitor

£1,384

Average Revenue per Retailer forecourt ('ARPR') per month up 10.5%

(2015: £1,252)

13,514

Number of retailer forecourts advertising on Auto Trader

(2015: 13,452)

243m

Advert Views per month increased by 7.5%

(2015: 226 million)

Where we operate

Revenue streams

Trade

Revenue from retailers and home traders advertising their vehicles and utilising Auto Trader's products.               

Revenue Performance

£236.4m

Up 10%

(2015: £214.8 million)

Consumer services

Revenue from private sellers who can place an advert for a fee on the marketplace and from our partners who provide services to consumers.

Revenue Performance

£30.3m

Up 4%

(2015: £29.0 million)

Display advertising

Revenue from manufacturers or their advertising agencies who advertise their brand or services on the marketplace.

Revenue Performance

£14.9m

Up 23%

(2015: £12.1 million)

Trevor Mather, Chief Executive

Chief Executive's statement

Even in a culture that welcomes change like Auto Trader's, this has been a truly landmark year.

Trevor Mather Chief Executive

Market overview

The role we play

The automotive marketplace is complex and often inefficient; Auto Trader's aim is to make it simple and more efficient.

Through our digital platforms and data we simplify and speed up the majority of the 10 million transactions to end users around the marketplace each year.

The automotive market today

The UK automotive market continues to grow modestly. New car registrations maintain strong levels which is feeding used car growth.

Governance

Committed to high standards of corporate governance

I am pleased to introduce our corporate governance report for 2016, which includes a review of the corporate governance arrangements in place, and reports from each of our Board Committees.