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Can Auto Trader improve profitability?
Look for an update on margin performance when online second-hand car marketplace Auto Trader (AUTO) reports its first half results (9 Nov). In the year to 31 March 2017, the company increased its underlying operating profit margin by six percentage points to 67%. Analysts at investment bank Berenberg believe a shift to less profitable products and higher staffing costs in its Manchester base could limit margin improvement going forward.