Autotrader (LSE:AUTO) shares moved lower on Thursday after the UK automotive marketplace operator reported full-year results that fell short of company-compiled consensus forecasts amid continued pressure in the used car market.
The stock declined more than 3% in early London trading following the release of results for the year ended 31 March 2026.
Group revenue increased 4% to £624.3 million, including £585.3 million from the core Autotrader platform and £39.0 million from Autorama. Operating profit also rose 4% to £392.7 million, while the main Autotrader business maintained an operating margin of 70%.
However, both revenue and operating profit came in below analyst expectations. Average revenue per retailer increased 5% to £2,995, while profit before tax rose 3% to £388.8 million. Basic earnings per share climbed 8% to 34.17 pence.
“We continued to grow both revenue and profits this year, despite a challenging backdrop,” chief executive Nathan Coe said. “Our competitive position has strengthened, with six times more time spent on Autotrader than all our main competitors combined.”
Looking ahead, the company forecast FY2027 group operating profit in the range of £395 million to £415 million, with the midpoint slightly below analyst consensus of £418 million.
Management said it expects the stock lever to recover to between minus £30 million and minus £40 million over the full year, while average retailer forecourts are forecast to decline by 1% to 2%. The product lever is expected to contribute between £65 million and £75 million to ARPR growth, and Autorama is anticipated to deliver a small profit during FY2027.
“FY27 guidance is also softer than expected, with ARPR growth expected to come in below consensus, mainly due to a weaker stock lever in ARPR,” Citi analysts noted.
Autotrader also announced plans to return around £600 million to shareholders through a combination of approximately £500 million in share buybacks and dividends equivalent to one-third of net income. Total shareholder returns across FY2026 and FY2027 are expected to exceed £1 billion.
The board proposed a final dividend of 7.8 pence per share, taking the full-year payout to 11.6 pence, compared with 10.6 pence in the previous year.
During the year, the company returned £463.2 million to shareholders through dividends and an accelerated share buyback programme, repurchasing 58.5 million shares, equivalent to 6.6% of issued share capital. The group also drew £165 million from its debt facility, leaving leverage at 0.3 times.
More about Autotrader
Auto Trader Group plc operates the UK’s largest digital automotive marketplace, connecting car buyers, retailers and manufacturers through online vehicle advertising and data-driven services. The company generates revenue primarily through retailer subscriptions, advertising products and automotive software solutions, while also expanding into vehicle leasing through its Autorama division.
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