Completion of Joint Venture with Cox Automotive UK

RNS Number : 8239L

Auto Trader Group plc

31 December 2018

 

31 December 2018

AUTO TRADER GROUP PLC

Auto Trader Group plc completes joint venture with Cox Automotive UK

Auto Trader Group plc (LSE: AUTO, the "Company"), the UK's largest digital automotive marketplace, is pleased to announce that, following clearance from the Competition and Markets Authority in the UK, its joint venture agreement with Cox Automotive UK Limited has now completed. The new combined business will provide a leading digital marketplace for wholesale vehicles in the UK.

The business will be called Dealer Auction, and will provide fleet companies, manufacturers and retailers with a more efficient and convenient way to dispose of their stock of vehicles. Retailers will gain access to a more comprehensive stock of vehicles available for them to buy and this will be supported with the data and tools to allow them to select the right vehicles for their specific needs. The business will offer a full end-to-end service, along with its business partners, who have significant experience in digital, wholesale and retail solutions.

Auto Trader has transferred Smart Buying (formerly known as Autotrade-mail), its retailer-to-retailer platform, to the joint venture. The transfer of the business, combined with the recognition of the joint venture, is anticipated to have a positive impact on Operating profit of £0.5 million for the year ended 31 March 2019, as a result of:

·     a reduction in Average Revenue per Retailer ('ARPR') of £3;

·    no effect on overall costs. People costs will reduce by £0.4 million, but will be offset by an increase in overheads resulting from amounts payable to the joint venture for continued access to Smart Buying for Auto Trader i-Control customers; and

·     the share of the profit from the joint venture being included, estimated at £0.8 million.

Further information on the joint venture agreement can be found in the Company's announcement, released on 16 August 2018.

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For more information:

Rob Greening or Lisa Kavanagh Powerscourt

[e-mail] [phone]

About Auto Trader

Auto Trader Group plc is the UK and Ireland's largest digital automotive marketplace. Auto Trader sits at the heart of the UK's vehicle buying process and its primary activity is to help vehicle retailers compete effectively on the marketplace in order to sell more vehicles, faster. Auto Trader listed on the London Stock Exchange in March 2015 and is a member of the FTSE 250 Index.

The marketplace brings together the largest and most engaged consumer audience. Auto Trader has over 90% prompted brand awareness and attracts circa 55 million monthly cross platform visits each month, with over 70% of visits coming through mobile devices.

The marketplace also has the largest pool of vehicle sellers (listing around 450,000 cars each day). Over 80% of UK automotive retailers advertise on autotrader.co.uk.

For more information, please visit http://about-us.autotrader.co.uk

About Cox Automotive

Cox Automotive is the world's largest automotive service organisation, providing solutions to our clients at every stage of the vehicle lifecycle. We help dealers, manufacturers, fleet and leasing companies to boost the value of their assets, improving performance and profitability.

In the UK, Cox Automotive provides inventory, financial, media and retail solutions to clients including franchised and independent dealers, car supermarkets, vehicle manufacturers and fleet and leasing companies. Cox Automotive brands in the UK include Manheim, Movex, RMS, NextGear Capital, Motors.co.uk, Modix, wewantanycar.com and money4yourmotors.com.

The group employs more than 2,300 team members in the UK and works with thousands of businesses throughout the automotive industry. For more information, visit www.coxauto.co.uk 

 

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