Autotrader Group plc (LSE:AUTO) reported a 5% increase in basic earnings per share to 18.10 pence for the six months ended 30 September 2026, despite a 1% decline in group revenue to £313.4 million. The company maintained its full-year operating profit guidance of £395 million to £415 million.
Group operating profit declined 1% to £198.5 million from £200.1 million a year earlier, while the operating profit margin remained unchanged at 63%.
Revenue excluding vehicle and accessory sales was broadly flat at £301.8 million, compared with £301.2 million in the prior-year period.
Revenue and Operating Performance
Vehicle and accessory sales revenue decreased 30% to £11.6 million from £16.5 million, accounting for the overall reduction in group revenue.
Operating costs declined to £117.2 million from £119.7 million, while the operating profit margin excluding vehicle and accessory sales remained at 66%.
Cash generated from operations was largely unchanged at £215.3 million, compared with £215.4 million a year earlier.
Autotrader said its financial performance reflected the ongoing response to retailer feedback following the introduction of its Deal Builder product in November 2025.
Retailer Numbers and Marketplace Activity Increase
The number of retailer forecourts using Autotrader increased from 13,600 at the end of March to 13,900 at the end of September.
Live vehicle listings also increased, largely reflecting additional private advertisements.
The company reported that UK car buyers spent approximately 12 times longer on its platform than on its nearest competitor, compared with nine times in the corresponding period last year.
Autotrader also accounted for more than 75% of total time spent on automotive marketplaces, while almost 80% of its buyers accessed the platform directly.
AI Investment and Digital Retailing Expansion
Autotrader is expanding its artificial intelligence capabilities through Autotrader Intelligence, a platform incorporating 57 specialised AI models and proprietary automotive data.
The company is developing AI-based tools for vehicle searches, personalised recommendations, inventory management, pricing and customer enquiries.
It also reported that the number of retailers using Deal Builder more than doubled during the period.
Autotrader expects its ongoing investment in AI technology to be funded internally without affecting its long-term operating margin expectations.
Share Buybacks Total £330 Million in Capital Returns
Autotrader returned £330 million to shareholders through dividends and share repurchases during the first half.
The company bought back 55.7 million shares, representing 6.7% of issued share capital, at an average price of 483.4 pence per share.
In July, Autotrader extended and increased its debt facility to £600 million. By the end of September, £335 million had been drawn, resulting in net bank debt of £320 million, compared with net cash of £5.2 million a year earlier.
Leverage increased to 0.8 times from zero.
The board proposed an interim dividend of 4.2 pence per share, representing an 11% increase year-on-year.
FY2027 Operating Profit Guidance Maintained
Autotrader reiterated its expectation for group operating profit of between £395 million and £415 million for the financial year ending March 2027.
Management expects revenue growth to accelerate during the second half following first-half trading in line with its forecasts.
The company plans to continue developing its AI-based services for vehicle buyers, retailers and manufacturers alongside its existing automotive marketplace operations.
More About Autotrader
Autotrader Group plc (LSE:AUTO) operates a UK automotive marketplace connecting vehicle buyers, retailers and manufacturers. The FTSE 100 company provides digital advertising, vehicle pricing data, market analysis and technology services supporting automotive transactions.
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