Autotrader Group plc

Total Auto Trader revenue increased 4% to GBP 585.3 million. Group operating profit increased 4% to GBP 392.7 million, and group operating profit margin remained at 63%. Cash generated from operations increased 5% to GBP 418 million, and EPS increased 8% year-on-year. Average revenue per retailer rose 5% to GBP 2,995 per month, while average retailer forecourts declined 0.5% to 13,942. FY26 full-year final dividend was 7.8p per share, making full-year dividends up 9% year-on-year. Looking to FY27, management expects group operating profit of GBP 395 million to GBP 415 million, group operating profit margins excluding vehicle and accessory sales to be at least maintained, and at least high single-digit EPS growth. Auto Trader revenue was flat year-on-year in April 2026, with growth expected to improve in the second half as retailer forecourts, paid stock and package penetration recover. For FY27, pricing is expected to add GBP 85 million to GBP 95 million to ARPA, products GBP 65 million to GBP 75 million, and stock to improve to minus GBP 30 million to minus GBP 40 million for the full year. Autorama is expected to make a small profit, with commission and ancillary revenue growing 8% to 12% and vehicle and accessory sales around GBP 40 million.

Nathan Coe said FY26 was tougher than expected because retailer profitability came under acute pressure, especially in November and December, which drove higher cancellations and slower Deal Builder rollout. He emphasized that the business still grew revenue, profit and EPS through the period and that retailer numbers, stock and upsells have improved since year-end. His tone was confident on the long-term franchise, especially around AI, Deal Builder, and the relevance of Auto Trader as a marketplace with specialized data, traffic and tools.

Jamie Warner focused on the financial bridge: revenue rose 4% to GBP 585.3 million, costs rose 4% to GBP 181.4 million, operating profit rose 4% to GBP 408 million for the Auto Trader segment, and group operating profit was GBP 392.7 million with a 63% margin. He noted people costs of GBP 93.6 million, marketing down 11% to GBP 21.9 million, other costs up 13%, and depreciation/amortization up 49% to GBP 9.4 million due mainly to the new head office lease. Cash generation was strong, with GBP 418 million from operations, and capital allocation shifted toward heavier buybacks: 58.5 million shares repurchased for GBP 369.1 million, 3.5x more shares bought in H2 than H1, and around GBP 500 million of buybacks expected in FY27, taking leverage toward 1x EBITDA.

Analysts pressed management on stock trends, forecourt churn, and the deal between Deal Builder and retailer cancellations; management said the worst pressure was in Q4, that stock and forecourts are now improving, and that the FY27 stock guide assumes continued recovery. Questions also focused on pricing and the package staircase, with management saying the 5.5% increase this year reflected sensitivity to retailer profitability, while future events can still support product-led growth through insight, productivity and digital retailing products. On AI traffic, management said LLM-originated traffic is still less than 0.5% of visits and that the company is preparing for an agentic future with an MCP server and ChatGPT app integration, but does not see traffic share materially changing soon.