REG - Autotrader Grp - FULL YEAR RESULTS FOR THE YEAR ENDED 31 MARCH 2026
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RNS Number : 1617F Autotrader Group PLC 21 May 2026
Embargoed until 7.00am, 21 May 2026
AUTOTRADER GROUP PLC
FULL YEAR RESULTS FOR THE YEAR ENDED 31 MARCH 2026
Autotrader Group plc ('the Group'), the UK's largest automotive marketplace
and leading digital platform for the automotive industry, announces full year
results for the year ended 31 March 2026
Financial results
£m (unless otherwise specified) 2026 2025 Change
Autotrader(1) 585.3 564.8 4%
Autorama 39.0 36.3 7%
Group revenue 624.3 601.1 4%
Autotrader(1) 408.0 394.0 4%
Autorama (2.0) (4.3) 53%
Group central costs(2) - relating to Autorama acquisition (13.3) (12.9) (3%)
Group operating profit 392.7 376.8 4%
Autotrader operating profit margin 70% 70% (0%) pts
Group operating profit margin 63% 63% 0% pts
Basic earnings per share (pence) 34.17 31.66 8%
Cash generated from operations(3) 418.0 399.7 5%
Cash returned to shareholders 463.2 275.7 187.5
Net cash / (bank debt)(4) (146.8) 15.3 (162.1)
Leverage (times)(5) 0.3x 0.0 0.3x
Average retailer forecourts (number)(6) 13,942 14,013 (1%)
Average revenue per retailer ('ARPR') (£)(6) 2,995 2,854 5%
Key headlines
- Revenue growth for the year was 4%, driven by ARPR growth of 5%,
largely through our price and product event in April 2025. Revenue growth in
H2 was 3% and lower in the fourth quarter, reflecting both the more difficult
trading conditions and retailer feedback regarding our Deal Builder product
roll-out, which we moved quickly to address. This has resulted in improved
sentiment, and throughout April and May, we have seen a gradual increase in
our core KPIs - retailer forecourts, volumes of paid stock and higher package
penetration.
- In the year, our position with car buyers has strengthened with 11x
more time spent on Autotrader(7) (2025: 10x) than our nearest competitor and
6x (2025: 6x) more time spent on Autotrader(8) than all our main competitors
combined. Through the strength of our brand, wide selection of available cars
and the tools we provide, over 80% of buyers on Autotrader choose to come to
us directly.
- Vehicle transactions are unique in their complexity, choice, value,
and multiple stages on and offline. As we've built, scaled and monetised AI,
we have seen that to be effective, the technology needs to be combined with
a deep user experience, highly curated real-time vehicle listings,
proprietary data, specialised models, and distribution to a highly fragmented
customer base of car buyers, agents and retailers.
- We have continued to scale our Deal Builder product, which delivers
higher quality enquiries that convert at double the rate into sales for our
customers. We evolved both the product and our approach based on retailer
feedback, and have recommenced the roll-out based on our strong conviction of
the benefits to retailers and car buyers. At year end, there were more than
three times as many customers on the product and almost three times as many
deals with full reservation were completed versus the prior year.
- During the year, we returned £463m to shareholders through dividends
and accelerated share buybacks, largely in H2. We purchased 58.5m shares (6.6%
of issued share capital), drawing £165m of our debt facility, increasing
leverage up to 0.3x. We are proposing a final dividend of 7.8 pence per share,
a 10% increase on the prior year.
- The Board believes the prevailing Autotrader share price does not
reflect the Company's fundamentals or long-term prospects and is therefore
updating its capital allocation policy. We will continue to invest in the
business to support growth and continue with our existing dividend policy. In
financial year 2027, we currently expect to return c.£600m to shareholders,
through c.£500m of share buybacks and continuing to pay a third of net income
in dividends. This returns over £1bn to shareholders over the course of 2026
and 2027.
Cultural KPIs
2026 2025 Change
Employee engagement(9) 72% 91% (19%) pts
Workforce representation(10,11)
Women as % of total staff 43% 44% (1%) pts
Women as % of leadership(12) 43% 43% 0% pts
Ethnically diverse representation as a % of total staff(13) 20% 19% 1% pts
Ethnically diverse representation as a % of total leadership(12,13) 9% 10% (1%) pts
CO(2) emissions
Autotrader emissions 19.4k tonnes 9.9k tonnes 9.5k tonnes
Autorama emissions 124.7k tonnes 83.3k tonnes 41.4k tonnes
Total Group emissions 144.1k tonnes 93.2k tonnes 50.9k tonnes
- Employee engagement has fallen to 72% from 91% a year ago. It has
been a challenging year for colleagues as a result of both internal and
external factors but other core people measures including recruitment and
colleague turnover remain largely unchanged.
- We had four women and four men on our Board (March 2025: six women
and three men), two ethnically diverse Board members (March 2025: two) and a
woman as Senior Independent Director(10).
- In January, we re-located to a new head office in Manchester. This
investment provides our people with an exceptional environment that supports
collaboration, wellbeing and creativity.
Nathan Coe, Chief Executive Officer of Autotrader, said:
"We continued to grow both revenue and profits this year, despite a
challenging backdrop. Our competitive position has strengthened, with six
times more time spent on Autotrader than all our main competitors combined.
We remain committed to using our brand, technology and proprietary data to
benefit car buyers and retailers. AI will significantly enhance our ability to
do this which has already been demonstrated through our retailer products,
such as Co-Driver and Buying Signals, as well as our improved search
functionality for car buyers both on our marketplace and within ChatGPT.
Looking forward we are confident we will continue to power a better car buying
experience and more profitable retailing for our customers."
2027 Outlook
We remain comfortable with our current levels of investment such that Group
operating profit margins, excluding Vehicle & Accessory sales, will be at
least maintained. Group operating profit is expected to be £395m - £415m for
financial year 2027. With an accelerated level of share buybacks, we
anticipate at least high single digit Basic EPS growth.
Autotrader revenue was flat year-on-year in April 2026, due to a lower run
rate and a lower price increase. However, retailer forecourts, volumes of paid
stock and package penetration are now improving, and we expect to grow in the
second half. Full year expectations are as follows:
- Our pricing and product event has gone well growing the price lever within
ARPR by £85-95. Growth in the product lever is expected to contribute
£65-75.
- Stock will recover resulting in an improvement from current levels to minus
£30-40 for the full year.
- Average retailer forecourts are now growing but will be 1-2% lower for the
full year.
- Other revenue will be broadly flat in aggregate, with a decline in Consumer
Services offset by growth in Manufacturer & Agency.
We expect Autorama to make a small profit for the year, with Commission &
Ancillary revenue growing 8-12% and Vehicle & Accessory sales of c.£40m.
As the majority of leasing transactions now originate on Autotrader we will
move to one reported operating segment in 2027. More detail is provided within
the financial review.
Analyst presentation
A presentation for analysts will be held in person at the offices of Deutsche
Numis and via audio webcast and conference call at 9.30am, Thursday 21 May
2026. Details below:
Audio webcast: https://edge.media-server.com/mmc/p/sy6id7zt
(https://edge.media-server.com/mmc/p/sy6id7zt)
Conference call registration:
https://register-conf.media-server.com/register/BIcea3f17d2aca47ca97468165e89dc20c
(https://register-conf.media-server.com/register/BIcea3f17d2aca47ca97468165e89dc20c)
If you have any trouble registering or accessing either the conference call or
webcast, please contact Sodali & Co on the details below.
For media enquiries
Please contact the team at Sodali & Co on +44 (0)20 7250 1446 or email
autotrader@sodali.com (mailto:autotrader@sodali.com)
About Autotrader
Autotrader Group plc is the UK's largest automotive marketplace and a leading
digital platform for the automotive industry. Listed on the London Stock
Exchange since March 2015, the company is a member of the FTSE 100 Index.
Autotrader's purpose is Driving Change Together. Responsibly. The company
uses advanced data science, artificial intelligence and scalable technology to
improve how vehicles are bought and sold, while building stronger partnerships
with its customers and the wider automotive ecosystem. Autotrader's platform
leverages significant amounts of proprietary data and machine learning models
to power pricing, demand forecasting and personalised consumer experiences.
These capabilities enable retailers and manufacturers to make better
decisions, improve performance and respond to real-time market dynamics.
Autotrader is increasingly digitising the car buying journey, from search and
discovery through to financing and purchase, enabling more of the buying
journey to take place online. Alongside this, it is using its data and
influence to support the transition to electric vehicles. This is all
underpinned by a values-led culture that empowers its people to develop and
perform, enabling continuous innovation across its platform and products.
The company also publishes a monthly used car Retail Price Index, based on the
analysis of approximately 800,000 vehicles each day from across the automotive
retail market. This dataset provides one of the most comprehensive views of
the UK automotive market and is used by organisations including the Bank of
England and the Office for National Statistics to inform economic indicators
and government policy.
For more information, please visit https://plc.autotrader.co.uk/
(https://plc.autotrader.co.uk/)
Cautionary statement
Certain statements in this announcement constitute forward looking statements
(including beliefs or opinions). "Forward looking statements" are sometimes
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "aims", "anticipates", "expects", "intends", "plans",
"predicts", "may", "will", "could", "shall", "risk", "targets", "forecasts",
"should", "guidance", "continues", "assumes" or "positioned" or, in each case,
their negative or other variations or comparable terminology. Any statement in
this announcement that is not a statement of historical fact including,
without limitation, those regarding the Company's future expectations,
operations, financial performance, financial condition and business is a
forward looking statement. Such forward looking statements are subject to
known and unknown risks and uncertainties, because they relate to events that
may or may not occur in the future, that may cause actual results to differ
materially from those expressed or implied by such forward looking statements.
These risks and uncertainties include, among other factors, changing economic,
financial, business or other market conditions. These and other factors could
adversely affect the outcome and financial effects of the plans and events
described in this results announcement. As a result, you are cautioned not to
place reliance on such forward looking statements, which are not guarantees of
future performance and the actual results of operations, financial condition
and liquidity, and the development of the industry in which the Group
operates, may differ materially from those made in or suggested by the forward
looking statements set out in this announcement. Except as is required by
applicable laws and regulatory obligations, no undertaking is given to update
the forward looking statements contained in this announcement, whether as a
result of new information, future events or otherwise. Nothing in this
announcement should be construed as a profit forecast. This announcement has
been prepared for the Company's group as a whole and, therefore, gives greater
emphasis to those matters which are significant to the Company and its
subsidiary undertakings when viewed as a whole.
To the extent available, the industry and market data contained in this
announcement has come from third party sources. Third party industry
publications, studies and surveys generally state that the data contained
therein have been obtained from sources believed to be reliable, but that
there is no guarantee of the accuracy or completeness of such data. In
addition, certain parts of the industry and market data contained in this
announcement come from the Company's own internal research and estimates based
on the knowledge and experience of the Company's management in the market in
which the Company operates. While the Company believes that such research and
estimates are reasonable and reliable, they, and their underlying methodology
and assumptions, have not been verified by any independent source for accuracy
or completeness and are subject to change without notice. Accordingly, undue
reliance should not be placed on any of the industry or market data contained
in this announcement.
Summary financial performance
Group results Units 2026 2025 Change
Revenue £m 624.3 601.1 4%
Operating profit £m 392.7 376.8 4%
Operating profit margin % 63% 63% 0% pts
Profit before tax £m 388.8 375.7 3%
Basic earnings per share Pence 34.17 31.66 8%
Dividend per share Pence 11.6 10.6 9%
Group cash flow
Cash generated from operations(3) £m 418.0 399.7 5%
Net Cash/(bank debt)(4) £m (146.8) 15.3 (162.1)
Leverage(5) times 0.3 0.0 0.3
Autotrader results(1)
Trade £m 531.3 509.1 4%
Consumer Services £m 38.8 42.4 (8%)
Manufacturer & Agency £m 15.2 13.3 14%
Revenue £m 585.3 564.8 4%
People costs £m 93.6 92.8 1%
Marketing £m 21.9 24.6 (11%)
Other costs £m 45.9 40.5 13%
Depreciation & amortisation £m 9.4 6.3 49%
Digital services tax £m 10.6 10.2 4%
Operating costs £m 181.4 174.4 4%
Share of profit from joint ventures £m 4.1 3.6 14%
Operating profit £m 408.0 394.0 4%
Operating profit margin % 70% 70% (0%) pts
Autorama results
Vehicle & Accessory Sales £m 29.6 26.1 13%
Commission & Ancillary £m 9.4 10.2 (8%)
Revenue £m 39.0 36.3 7%
Cost of goods sold £m 29.9 26.2 14%
People costs £m 6.8 7.4 (8%)
Marketing £m 1.4 2.7 (48%)
Other costs £m 2.2 2.8 (21%)
Depreciation & amortisation £m 0.7 1.5 (53%)
Operating costs £m 41.0 40.6 1%
Operating loss £m (2.0) (4.3) 53%
Group central costs - relating to Autorama acquisition(2)
Depreciation & amortisation £m 13.3 12.9 3%
Operating costs £m 13.3 12.9 3%
Operating loss £m (13.3) (12.9) (3%)
1. Autotrader includes the results of Autotrader and AutoConvert in
respect of online marketplace advertising of motor vehicles and other related
products and services in the digital automotive marketplace, including the
Dealer Auction joint venture.
2. Group central costs which are not allocated within either of the two
segmental operating profit/(loss) comprises a £13.3 million amortisation
expense (2025: £12.9 million) relating to the fair value of intangible assets
acquired in the Group's business combination of Autorama.
3. Cash generated from operations is defined as net cash generated from
operating activities, before corporation tax paid.
4. Net Cash/(bank debt) represents cash less gross bank debt before
amortised debt costs, and does not include amounts relating to leases,
non-bank loans or vehicle stocking loans.
5. Leverage is defined as the ratio of net bank debt to earnings before
interest, taxation, depreciation and amortisation, share-based payments and
associated NI, share of profit from joint ventures and exceptional items
('EBITDA').
6. Average during the period.
7. Share of minutes from our nearest competitor is a custom metric based
on Comscore minutes and is calculated by dividing Autotrader's total minutes
volume by the entire custom-defined competitive set's total minutes volume.
The custom-defined list includes: Autotrader, Gumtree.com - Motors, eBay
Motors UK and Cazoo.
8. Share of minutes from all our main competitors is a custom metric based
on Comscore minutes and is calculated by dividing Autotrader's total minutes
volume by the entire custom-defined competitive set's total minutes volume.
The custom-defined list includes: Autotrader, CarGurus, Gumtree.com - Motors,
eBay Motors UK, Motors, Carwow and Pistonheads.
9. Based on a survey to all employees in May 2026 asking our people to
rate the statement "I am proud to work for Autotrader". Answers were given on
a five-point scale from strongly disagree to strongly agree.
10. As at 31 March 2026
11. We calculate all our diversity percentages using total Group headcount,
1,239 as at 31 March 2026 (March 2025: 1,290).
12. In the prior year, we extended our leadership team from 12 individuals
(previously our Operational Leadership Team, 'OLT') to 21 individuals (now
called our Autotrader Leadership Team, 'ALT'). We define leaders as those who
are on our ALT and their direct reports, excluding those with senior and
principal job titles in Product & Tech.
13. Throughout the year we have asked our employees to voluntarily disclose
their ethnicity. At 31 March 2026 we had 60/5% employees who had not yet
disclosed.
CEO Review
Our purpose, Driving Change Together. Responsibly, guides how we use our
brand, technology and data to improve the UK automotive market.
We can do this better than any other business for car buyers, sellers and
retailers in the UK. The market is large, the transaction is important and
often filled with complexity for millions of buyers and sellers every year.
Our strategy has three focus areas: our marketplace; our platform; and digital
retailing. These areas are closely interconnected, as our platform and digital
retailing capabilities build on and contribute to the strength of our
marketplace. Over time we have embedded our proprietary data and services into
the systems and processes used by both our retailer partners and wider
automotive related businesses.
I would like to thank all my colleagues across Autotrader for their commitment
and professionalism throughout the year. It has been a demanding period, and
your contribution and teamwork has been humbling.
Our market leading position
For much of the past 50 years under the Autotrader brand, we have built a
large, highly engaged audience that is difficult for others to replicate. This
year, on average each month, we saw over nine million unique visitors,
averaging 548 million (2025: 557 million) minutes of activity on
site. Through the strength of our brand, the large majority of these buyers
came direct to Autotrader: Over 80% of our visits were either direct to our
mobile apps, direct to our URL or through searches for "Autotrader"; 13%
were from organic search; and only 4% from paid for web traffic. Currently
less than 1% of audience comes from generative AI chat assistants.
In the year our competitive position has strengthened. We were 11x larger
(2025: 10x) than our nearest competitor in terms of time on site, which was
against a collection of four brands. We were 22x larger (2025: 23x) than the
next largest individual brand and 6x more time (2025: 6x) was spent on
Autotrader than all our main competitors combined. 67% of our audience was
unique to Autotrader, not visiting these other sites.
Retailer numbers softened slightly during the year, reflecting both the more
difficult cost-related trading conditions and concerns with the speed and
nature of our Deal Builder product roll-out. Average retailer forecourts
advertising with us for the year decreased by 0.5% to 13,942 (2025: 14,013)
and were 236/1.7% lower in the second half. Whilst this was disappointing, we
have listened carefully to customer feedback, taken proportionate action and
remain focused on winning back retailers and strengthening our long-term
partnership with customers.
Average revenue per retailer ('ARPR') increased 5% (or £141) to £2,995
(2025: £2,854). This was primarily driven by our April 2025 pricing and
product event which included our generative AI powered product, Co-Driver,
which automates vehicle description generation and vehicle highlights for
retailers, as well as image tagging, ordering and optimisation. Despite higher
average live car listings of 451,000 (2025: 449,000), which was supported by
an offer, paid for stock was a drag on ARPR this year. This was largely due to
customers moderating spend at the end of the calendar year, which also
impacted our prominence products. We are evolving our package staircase in H1,
with the aim of returning prominence to long-term growth.
Our market continues to grow in both volume and value
The UK car parc has continued to grow steadily, increasing by just over
300,000 vehicles - or around 1% per year on average over the past two decades,
reaching 37 million today. Transaction volumes have also generally grown at a
similar pace, as the speed at which the overall car parc turns has
consistently ranged between three and four years over this period. These
long-term trends were temporarily disrupted during the COVID-19 pandemic, when
new car production fell to levels below those seen during the 2008-09
financial crisis. The resulting constraints on supply across several age bands
reduced supply and accelerated stock turn. These cyclical movements are
typical, and while we expect periods of both above and below trend growth, the
underlying drivers of a growing population, an expanding parc and increasing
transaction volumes remain firmly in place.
New car registrations grew 5% over the past 12 months to 2.1 million (2025:
2.0 million), with growth coming through the retail channel for the first time
in four years. We have seen a notable increase in volumes from newer Chinese
manufacturers, providing franchise retailers with opportunities to broaden
their portfolios at a time when profitability in some established brands has
come under pressure, partly due to the costs of meeting the Zero Emission
Vehicle "ZEV" mandate. Used car transactions grew 1% to 7.7 million (2025: 7.6
million), with gradually improving levels of supply seen throughout the year.
Speed of sale in the year, whilst quick by historic standards, was broadly
consistent with the level seen in the last financial year.
While parc size and transaction volumes determine overall sales volumes,
pricing trends also play an important role. Between financial year 2016 and
2026, average used car values increased by 6% per annum. Although some of this
reflects vehicle mix, the majority is due to inflation, improvements in
vehicle specification, longer vehicle lifecycles and the shift towards
higher-value electric vehicles. Based on a sample of customer accounts, over
more than 10 years gross percentage margins have remained relatively
consistent between nine and eleven percent, meaning higher vehicle prices
typically translate through to higher absolute gross profits.
A well-invested technology and data platform
Our technology platform reflects decades of consistent, long-term investment.
We have already transitioned fully to a modern cloud-based delivery and data
platform based largely on open-source technologies. We've adopted these
emerging technologies always within our existing cost base. The highly
performant, reliable and consistent architecture allows us to build new
features quickly on stable foundations. The recent addition of an AI platform
built using the same principles allows us to quickly build, train and roll-out
AI services and products utilising a wide range of foundational large language
models ('LLMs').
Alongside this, we hold a proprietary dataset covering everything from vehicle
specifications to real-time buyer behaviour, which retailers have come to rely
on as much as our advertising products. With the broadest view of the UK car
market, we can provide unparalleled insight into which cars retailers should
be stocking, what retail prices they are likely to achieve, likely days to
sell and how they are performing against competitors. We have almost 300
people in our customer-facing teams, who are equipped with tools that identify
operational opportunities, problem vehicles, areas of future risk and
opportunity and performance variation across different retail sites. By
combining these tools with hands-on support, we help retailers drive
efficiencies and improve profitability over time.
The use of our data also extends beyond just retailers to become an important
industry asset, integrated with over 220 technology partners and increasingly
central to finance and insurance companies. The number of calls on these
technology and data services increased to average 155 million per month (2025:
91 million), demonstrating the embedded nature of this data into many customer
systems and decision-making processes. We see further opportunity in
continuing to expand this capability to deliver business improvements to a
range of automotive industry participants.
AI presents significant opportunity to improve our experiences
We believe the shift in AI capability over the next few years will be as big,
if not a bigger, technology transition than the internet, mobile, big data,
cloud and machine-learning. The products we are building today provide a long
runway for us to provide an even richer experience for car buyers, better
tooling for retailers, enabling them to automate tasks that previously relied
on the manual effort of people, and better tooling for our colleagues enabling
us to improve our ways of working. We are well positioned to do this with a
technology stack that already has examples of these types of products at scale
today.
Our product and technology organisation includes a growing data science and
analytics community and has had ongoing research partnerships with Manchester
Metropolitan University and the University of Manchester since 2019, focused
on Natural Language Processing and Large Language Models, producing academic
whitepapers and insights that inform internal development. Our data platform
includes more than 50 proprietary AI and machine learning models, and our
advantage lies in training these specialised models that leverage our
significant volume of consumer, vehicle and retailer data to deliver a level
of accuracy and consistency that general-purpose LLMs cannot achieve on their
own. Publicly available vehicle listings represent only a small part of the
required data, and our products are dependent on deep technical integrations
including vehicle checks, integrated retailer finance offers, and integrations
with manufacturer production systems, all of which have been built over many
years and are generally specific to the UK.
For car buyers, we have delivered:
· Our new "I'm looking for" AI-powered suggested search, which uses
proprietary models to enable car buyers to search across car listings using
categories.
· A trial of conversational-based text search to discover filters
more easily.
· ChatGPT app integration via Model Context Protocol (MCP), which
benefits future integrations.
· AI-generated vehicle highlights, identifying what characteristics
are most valuable compared to similar vehicles.
· Improved search relevancy algorithm that also underpins our
advertising products.
· "You may also like" suggested recommendations.
· Specification adjusted valuations underpinning our price flags.
· Independent valuations for private sale, part-exchange, sale to a
retailer or a retailer auction.
· Enhanced imagery and descriptions through Co-Driver.
For retailers, we have delivered:
· Tools that help optimise inventory performance (pricing, retail
rating, market health, demand, supply, vehicle marketplace performance and
predicted days to sell).
· APIs that power manufacturer and retailer websites, business
intelligence tools, point-of-sale systems and third-party applications.
· Improved car buyer conversion through Deal Builder and Buying
Signals.
· Productivity improvements through AI-powered Co-Driver image and
description tools. 86% of retailers have used one of our Co-Driver tools
since launch. There have been 1.9 million descriptions generated and 700k
smart image re-orders. 66% of retailers have used Co-Driver in the past 30
days.
Consumer behaviour is changing, with increased use of conversational chat
interfaces powered by LLMs. We expect this trend to continue, with AI taking
on more of the buying experience for many goods sold online. Whilst this
change presents some risk, car buying is a high-value, multi-step and often
regulated process, where each vehicle is unique and changes daily. We see
opportunity to provide seamless pathways into real-time vehicle results
through efficient and effective integrations with AI assistants and agents. As
with search engines over the past two decades, AI agents will rely on
Autotrader as a trusted source of truth, ensuring that wherever a buyer's
journey begins, the most accurate and up-to-date information comes from our
platform.
Increasing value for our retailers
As part of our 1(st) April 2025 pricing and product event, we included
Co-Driver which anecdotally reduces the average time taken to list a vehicle
from 28 minutes to 5 minutes, which is significant when multiplied across more
than 340,000 vehicles uploaded every month by retailers. Vehicle Highlights,
which appear on the majority of adverts, has seen strong buyer engagement and
feedback.
We are committed to delivering more, higher quality enquiries, that convert at
double the rate into sales for our customers, which has always been at the
core of our Deal Builder proposition. We believe doing so will drive
long-term value for buyers, our retailer customers and Autotrader, whilst
being difficult for others to replicate. During the year we recognised the
need to change both our approach and aspects of the product to better
accommodate the needs of some retailers. Sentiment has now improved
following our response, which included: pausing auto-rollout; holding open
listening sessions; establishing customer advisory groups; and introducing
"request a reservation".
In the year, we have continued to scale Deal Builder, with over 6.7k retailers
on the product (March 2025: 2.0k) and 175k vehicles live at the end of March
(March 2025: 84k). Within the 6.7k retailers, we have started onboarding some
of our largest customers with custom integrations. In the year, we saw 137k
deals with a full reservation placed (2025: 49k), which continue to be the
very best enquiries in terms of conversion to sale.
In January 2026, we launched our Buying Signals product, which uses a
proprietary machine learning model trained on verified but anonymised sales
transactions and consumer interactions. Buying Signals has already featured on
over 800k enquiries, and early results indicate that leads flagged as
high-intent convert at twice the average rate. With over 15 million enquiries
generated annually, some of which go unanswered, the potential for better
outcomes for both car buyers and retailers is clear.
Updated capital allocation policy, with accelerated share buyback programme
Autotrader has a long track record of strong cash generation which we expect
to continue. Autotrader's capital allocation policy continues to focus on
investment in the business supporting growth, while returning approximately
one third of net income to shareholders through dividends. We are proposing a
final dividend of 7.8 pence per share (2025: 7.1 pence per share) giving total
dividends of 11.6 pence per share for the year (2025: 10.6 pence per share).
In the year, we have accelerated our share buyback programme purchasing 58.5
million shares in the year, 6.6% of issued share capital. At year end we had
drawn £165m of our debt facility, increasing leverage up to 0.3x. Combined
with dividends we have returned £463.2m (2025: £275.7m) to shareholders.
The Board believes the prevailing Autotrader share price does not reflect the
Company's fundamentals or long-term prospects. Despite a rapidly changing
technology environment, our current competitive position has strengthened, we
are adapting our car buying experience to evolve with consumer habits, and we
remain comfortable our investment in technology is sufficient to take
advantage of AI. We do recognise that we have had a challenging end to the
year which impacts growth in both 2026 and 2027, although we have seen a
gradual increase in some of our core metrics as we've entered the new
financial year.
With this in mind, in 2027 we currently expect to return c.£600m to
shareholders. This will be through purchasing c.£500m of shares, (we will be
seeking authority to purchase up to 15% of issued share capital at our 2026
AGM), as well as paying a third of net income in dividends. Based on current
assumptions, this would increase leverage to c.1.0x. In aggregate this returns
over £1bn to shareholders over the course of 2026 and 2027.
Our culture
Culture for us is as tangible and important to our performance, as our
strategy, competitive position, product and technology.
During the year, we completed a move to our new office at Circle Square in
Manchester. Although only a short distance from our previous site, this new
campus represents a meaningful step forward. It can accommodate all our people
and provides a modern working environment, increased space for collaboration,
improved facilities for customers and community activity, enhanced technology
and stronger environmental credentials. Employee engagement has fallen to 72%
from 91% a year ago. It has been a challenging year for colleagues with
restructures, external factors and a tighter approach to working in the
office. Other core people measures including recruitment and colleague
turnover remain largely unchanged. We remain committed to improving this
measure over the next 12 months.
At the end of March 2026, women represented 43% of our organisation (March
2025: 44%) and 43% (March 2025: 43%) of leadership roles as defined by the
FTSE Women Leaders Review. Ethnically diverse employees represent 20% of our
organisation (March 2025: 19%), and 9% (March 2025: 10%) of leaders. We remain
focused on improving both of these percentages, albeit in a sustainable way.
Our Board comprises four women and four men, with two from an ethnically
diverse background and a woman as Senior Independent Director.
We are committed to being net zero by 2040 and halving our carbon emissions by
2030, targets which have been validated by the Science Based Targets
initiative ('SBTi'). Our calculations estimate our GHG emissions during the
year were 55% higher at c.144.1k tonnes of CO₂ across Scopes 1, 2 and 3
(2025: 93.2k tonnes). The majority of our emissions are Scope 3, with the
increase driven by both a one-off capital expenditure on our new office and an
increase in the number of vehicles taken on balance sheet by
Autorama.
Board changes
Megan Quinn and Adam Jay were appointed to the Board with effect from 1 July
2025, strengthening the Board's technology and digital marketplace experience.
Both have also joined the Audit, Remuneration, Corporate Responsibility and
Nomination Committees, and at the conclusion of the 2025 AGM, Megan assumed
the role of Chair of the Corporate Responsibility Committee. Their
appointments follow a comprehensive search led by the Nomination Committee,
supported by an external search firm, and form an integral part of the Board's
long-term succession planning. These changes mark a significant refresh of the
Board following the scheduled completion of several Non-Executive Directors'
third three-year terms since the Company's IPO in 2015. The Board now benefits
from a balanced mix of technology, marketplace, retail and financial services
experience, positioning the Company well for the years ahead.
We would also like to acknowledge Catherine Faiers, our Chief Operating
Officer, who stepped down from the Board on 9 December 2025. Catherine has
taken up the role of Chief Executive Officer at Moonpig plc, an opportunity
that is well deserved. Catherine made a significant contribution to the
business, and we are extremely grateful for her leadership and impact. While
we are sad to see her leave, she departs with the very best wishes of everyone
at Autotrader.
Investor calendar
The Group's results for the half year ending 30 September 2026 will be
announced on 5 November 2026.
2026 financial performance
Group results
2026 2025 Change
£m £m %
Revenue 624.3 601.1 4%
Operating costs (235.7) (227.9) (3%)
Share of profit from joint ventures 4.1 3.6 14%
Group operating profit 392.7 376.8 4%
Group operating profit margin 63% 63% 0% pts
Group revenue increased by 4% to £624.3m (2025: £601.1m) driven by
Autotrader revenue which increased by 4% to £585.3m (2025: £564.8m) with
Autorama contributing £39.0m (2025: £36.3m). Group operating profit also
grew by 4% to £392.7m (2025: £376.8m).
Autotrader operating profit increased by 4% to £408.0m (2025: £394.0m),
which included £4.1m share of profit from joint ventures (2025: £3.6m).
Autorama had an operating loss of £2.0m (2025: £4.3m).
2026 2025 Change
£m £m %
Autotrader 408.0 394.0 4%
Autorama (2.0) (4.3) 53%
Group central costs - relating to Autorama acquisition (13.3) (12.9) (3%)
Group operating profit 392.7 376.8 4%
Group central costs comprise an amortisation charge of £13.3m (2025: £12.9m)
relating to the Autorama intangible assets acquired. Group central costs,
which will be consolidated into total depreciation & amortisation in 2027,
will be £13.0m for the year.
Group profit before tax increased by 3% to £388.8m (2025: £375.7m). Cash
generated from operations was £418.0m (2025: £399.7m).
Autotrader results
Revenue increased to £585.3m (2025: £564.8m), up 4% when compared to the
prior year. Trade revenue, which comprises revenue from Retailer, Home Trader
and other smaller revenue streams, also increased by 4% to £531.3m (2025:
£509.1m).
2026 2025 Change
£m
£m
%
Retailer 501.1 480.0 4%
Home Trader 16.7 16.1 4%
Other 13.5 13.0 4%
Trade 531.3 509.1 4%
Consumer Services 38.8 42.4 (8%)
Manufacturer & Agency 15.2 13.3 14%
Autotrader revenue 585.3 564.8 4%
Retailer revenue increased by 4% to £501.1m (2025: £480.0m). The average
number of retailer forecourts advertising on our platform declined 0.5% to
13,942 (2025: 14,013).
Average revenue per retailer ('ARPR') per month increased by 5% to £2,995
(2025: £2,854). ARPR growth was driven by the product and price levers, with
a negative contribution from the stock lever.
· Price: Our price lever contributed growth of £117 (2025: £78)
to ARPR, reflecting the annual 1 April 2025 pricing and product event, which
combined a like-for-like price increase with additional products.
· Stock: Our stock lever negatively impacted ARPR by £48 (2025:
negative £22). From November 2025, prompted by the speed and nature of our
Deal Builder product and reflecting more difficult trading conditions, a
number of retailers reduced the number of vehicles advertised on the platform,
contributing to lower paid stock levels. The average number of live cars
advertised on Autotrader increased to 451,000 (2025: 449,000). Stock levels
were supported by the introduction of a stock offer at the start of the year,
which had no impact on ARPR. Average underlying live used car stock declined
marginally in the year to 428,000 (2025: 429,000). Therefore growth was driven
by new car stock, which increased on average to 23,000 (2025: 20,000).
· Product: Our product lever contributed £72 (2025: £77) to ARPR,
driven primarily by the inclusion of Co-Driver within retailer packages and
further supported by an increase in new car paying retailers, offset by lower
average package penetration.
Home Trader revenue increased by 4% to £16.7m (2025: £16.1m). Other revenue
also increased by 4% to £13.5m (2025: £13.0m).
Consumer Services revenue (comprising Private and Motoring Services revenue)
declined by 8% in the year to £38.8m (2025: £42.4m). This decline was
primarily driven by Private revenue, which is largely generated from
individual sellers who pay to advertise their vehicle on the Autotrader
marketplace, which decreased 11% to £23.6m (2025: £26.6m). Motoring Services
revenue decreased 4% to £15.2m (2025: £15.8m) due to a decline in revenue
from our insurance partner.
Revenue from Manufacturer & Agency customers increased 14% to £15.2m
(2025: £13.3m), largely due to certain brands supporting their franchise
network on both new and used car advertising.
Total costs increased 4% to £181.4m (2025: £174.4m).
2026 2025 Change
£m £m %
People costs 93.6 92.8 1%
Marketing 21.9 24.6 (11%)
Other costs 45.9 40.5 13%
Depreciation & amortisation 9.4 6.3 49%
Digital services tax 10.6 10.2 4%
Autotrader costs 181.4 174.4 4%
People costs increased by 1% to £93.6m (2025: £92.8m), predominantly due to
an increase in underlying salary costs as we continue to maintain a strong and
competitive digital workforce. The average number of full-time equivalent
employees ('FTEs') remained broadly flat at 1,138 (2025: 1,140), reflecting
the stable resourcing levels currently required to support the business.
Within people costs, share-based payments decreased 18% to £9.3m (2025:
£11.3m), primarily reflecting lapsed awards following the COO's departure and
lower national insurance on unexercised awards, partially offset by the third
year of our all-employee share scheme. Share-based payments are expected to be
£14m in 2027.
Marketing expenditure decreased 11% to £21.9m (2025: £24.6m). We expect this
to increase in financial year 2027.
Other costs, comprising data services, property-related expenses and
overheads, increased by 13% to £45.9m (2025: £40.5m). The year-on-year
uplift was mainly driven by higher cloud infrastructure expenditure and
property costs related to our new office.
Depreciation and amortisation increased by 49% to £9.4m (2025: £6.3m) driven
by our new head office lease that commenced in June 2025. The associated
fit-out was capitalised and depreciation began in January 2026 when the
premises became operational.
2026 2025 Change
£m £m %
Revenue 585.3 564.8 4%
Operating costs (181.4) (174.4) (4%)
Share of profit from joint ventures 4.1 3.6 14%
Autotrader operating profit 408.0 394.0 4%
Autotrader operating profit margin 70% 70% (0%) pts
The Group's share of profit from our joint venture, Dealer Auction, increased
14% to £4.1m (2025: £3.6m), driven by a higher volume of vehicle
transactions.
Autorama results
2026 2025 Change
£m £m %
Vehicle & Accessory Sales 29.6 26.1 13%
Commission & Ancillary 9.4 10.2 (8%)
Autorama revenue 39.0 36.3 7%
Autorama revenue was £39.0m (2025: £36.3m), with Vehicle & Accessory
sales contributing £29.6m (2025: £26.1m), and commission and ancillary
revenue contributing £9.4m (2025: £10.2m).
Total deliveries amounted to 8,056 units (2025: 6,268), which comprised 5,302
cars (2025: 2,124), 2,520 vans (2025: 3,498) and 234 pickups (2025: 646).
Deliveries from Autotrader, which were predominantly cars, increased over
three times to 3,804 (2025: 976). Average Commission & Ancillary revenue
per unit delivered was £1,167 (2025: £1,627).
2026 2025 Change
£m £m %
Cost of goods sold 29.9 26.2 14%
People costs 6.8 7.4 (8%)
Marketing 1.4 2.7 (48%)
Other costs 2.2 2.8 (21%)
Depreciation & amortisation 0.7 1.5 (53%)
Autorama costs 41.0 40.6 1%
The Autorama business delivered c.1,350 (2025: c.900) vehicles which were
temporarily taken on balance sheet in the year to 31 March 2026. This
represented 17% (2025: 14%) of total vehicles delivered in the period. The
cost of these vehicles was taken through cost of goods sold, with the
corresponding revenue in vehicle and accessory sales.
People costs of £6.8m (2025: £7.4m) related to the 106 FTEs (2025: 127)
employed on average through the year. Marketing in the year was £1.4m (2025:
£2.7m). Other costs of £2.2m (2025: £2.8m) include IT services, property
costs, and other overheads. Depreciation and amortisation totalled £0.7m
(2025: £1.5m).
2026 2025 Change
£m £m %
Revenue 39.0 36.3 7%
Costs (41.0) (40.6) 1%
Operating loss (2.0) (4.3) 53%
Change to operating segments in 2027
From financial year 2027, Autorama will operate and be reported as a single
operating segment with the rest of the Autotrader Group, as more than half of
all leasing transactions being delivered through the Autotrader platform in
the second half of financial year 2026. Below we provide a breakdown of
financial year 2025 and 2026 in this new format:
2026 2025 Change
£m £m %
Trade 531.3 509.1 4%
Consumer Services 38.8 42.4 (8%)
Commission & Ancillary 9.4 10.2 (8%)
Manufacturer & Agency 15.2 13.3 14%
Leasing, Manufacturer & Agency 24.6 23.5 5%
Vehicle & Accessory sales 29.6 26.1 13%
Total revenue 624.3 601.1 4%
Total revenue excl. Vehicle & Accessory sales 594.7 575.0 3%
Salaries 90.7 88.5 2%
Share-based payments 9.7 11.7 (17%)
People costs 100.4 100.2 0%
Marketing 23.3 27.3 (15%)
Cost of goods sold 29.9 26.2 14%
Other costs 48.1 43.3 11%
Depreciation & amortisation 23.4 20.7 13%
Digital Services Tax 10.6 10.2 4%
Total costs 235.7 227.9 3%
Profit from joint ventures 4.1 3.6 14%
Operating profit 392.7 376.8 4%
Operating profit margin excl. Vehicle & Accessory sales 66% 66% 0% pts
Group net finance costs
Group net finance costs increased to £3.9m (2025: £1.1m). Interest costs on
the Group's Syndicated Revolving Credit Facility ('Syndicated RCF') totalled
£2.8m (2025: £1.1m) due to higher borrowing in the year.
At 31 March 2026, the Group had drawn £165.0m of its available facility (31
March 2025: £nil). Other finance costs comprised amortisation of debt issue
costs of £0.4m (2025: £0.5m), vehicle stocking loan interest of £0.3m
(2025: £0.3m) and interest costs relating to leases of £1.7m (2025: £0.1m).
This was offset by interest receivable on cash and cash equivalents of £1.3m
(2025: £0.9m).
Taxation
Group profit before taxation increased by 3% to £388.8m (2025: £375.7m). The
Group tax charge of £94.9m (2025: £93.1m) represents an effective tax rate
of 24% (2025: 25%). This was lower than the standard rate of UK corporation
tax due to the tax impact of a property disposal.
The operating expense relating to the UK Digital Services Tax ('DST') was
£10.6m (2025: £10.2m).
Earnings per share
Basic earnings per share increased by 8% to 34.17 pence (2025: 31.66 pence)
based on a weighted average number of ordinary shares in issue of 860.2
million (2025: 892.4 million). Diluted earnings per share which accounts for
the dilutive impact of outstanding share awards, also increased by 8% to 34.07
pence (2025: 31.56 pence), based on 862.7 million shares (2025: 895.4
million).
Cash flow and net cash
Cash generated from operations increased to £418.0m (2025: £399.7m)
predominantly due to the increase in operating profit. Corporation tax
payments increased to £95.2m (2025: £95.1m). Net cash generated from
operating activities was £322.8m (2025: £304.6m).
As at 31 March 2026, the Group had net bank debt of £146.8m (31 March 2025:
net cash of £15.3m). At the year end, the Group had drawn £165.0m of its
Syndicated RCF (31 March 2025: £nil) and held cash and cash equivalents of
£18.2m (31 March 2025: £15.3m).
Leverage, defined as the ratio of Net bank debt to EBITDA was 0.3 times (2025:
0.0 times) and interest paid was £2.8m (2025: £1.2m).
Capital structure and dividends
During the year, a total of 58.5 million shares (2025: 23.9 million) were
purchased for a consideration of £369.1m (2025: £187.3m) before transaction
costs of £1.9m (2025: £0.9m). A further £94.1m (2025: £88.4m) was paid in
dividends, giving a total of £463.2m (2025: £275.7m) in cash returned to
shareholders.
The Directors are recommending a final dividend of 7.8 pence per share.
Subject to shareholders' approval at the AGM on 16 July 2026, the final
dividend will be paid on 25 September 2026 to shareholders on the register of
members at the close of business on 28 August 2026. The total dividend for the
year is therefore 11.6 pence per share (2025: 10.6 pence per share).
Autotrader's capital allocation policy continues to focus on investment in the
business supporting growth, while returning approximately one third of net
income to shareholders through dividends. For financial year 2027, we expect
to continue the recent acceleration of share buybacks, purchasing c.£500m of
shares and continuing with our existing dividend policy.
Going concern
The Group delivered strong operating cash generation during the year. At 31
March 2026, the Group had drawn £165.0m of its Syndicated RCF and held
£18.2m in cash. With a robust balance sheet, flexible liquidity position and
a Syndicated RCF, which has recently increased to £300m and is committed
until February 2030, the Directors consider the Group to have sufficient
resources to continue as a going concern.
Contingent liabilities and FCA review of automotive finance
On 27 March 2026 the Competition and Markets Authority ('CMA'), exercising its
new direct consumer enforcement powers, announced an investigation into a
number of companies in relation to online consumer reviews, including
Autotrader and our third-party moderator, Feefo. We have no additional
information from the regulator to better understand their specific concerns,
but we endeavour always to operate as a responsible and compliant business and
will co‑operate fully with the CMA's investigation.
On 30 March 2026, the FCA set out confirmation of a consumer redress scheme
for certain commissions earned on historic motor finance agreements. On 1
May, the FCA confirmed that the scheme had been subject to legal challenges
from several lenders. The challenges will be referred to the Upper Tribunal
where they will be subject to judge-led review, and therefore the scheme's
launch has been paused. We continue to believe that Autotrader has no direct
liability or financial exposure, but we continue to monitor developments
closely, including the impact on the wider financial health of the automotive
market.
Audit tender
KPMG LLP were first appointed as the Group's statutory auditor for the
financial year ending 31 March 2017. In accordance with the Large Companies
Market Investigation Order 2014, the Group is required to undertake a
competitive tender process for its statutory audit at least every ten years.
As announced on 12 February 2026, the Group has now completed this tender, led
by the Chair of the Audit Committee, and following a thorough evaluation the
Board has approved the reappointment of KPMG LLP as statutory auditor. This
will take effect from the financial year ending 31 March 2027, subject to
shareholder approval at the 2026 AGM.
Post balance sheet events
On 15 May 2026, the Group accessed its £100.0m accordion, increasing its
existing debt facility to £300.0m. Debt fees of £0.7m were incurred and will
be amortised over the facility term. All lenders are now committed to the
maturity date of February 2030 and there are no changes to the terms of the
Syndicated RCF.
Consolidated income statement
For the year ended 31 March 2026
Note 2026 2025
£m £m
Revenue 3 624.3 601.1
Operating costs (235.7) (227.9)
Share of profit from joint ventures, net of tax 11 4.1 3.6
Operating profit 4 392.7 376.8
Net finance costs 5 (3.9) (1.1)
Profit before taxation 388.8 375.7
Taxation 6 (94.9) (93.1)
Profit for the year attributable to equity holders of the parent 293.9 282.6
Basic earnings per share (pence) 7 34.17 31.66
Diluted earnings per share (pence) 7 34.07 31.56
Consolidated statement of comprehensive income
For the year ended 31 March 2026
2026 2025
£m £m
Profit for the year 293.9 282.6
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of post-employment benefit obligations, net of tax (0.1) (0.5)
Other comprehensive income for the year, net of tax (0.1) (0.5)
Total comprehensive income for the year attributable to equity holders of the 293.8 282.1
parent
Consolidated balance sheet
At 31 March 2026
Note 2026 2025
£m £m
Assets
Non-current assets
Intangible assets 8 457.1 472.2
Property, plant and equipment 9 73.0 13.4
Deferred taxation assets - 1.1
Retirement benefit surplus - 0.2
Net investments in joint ventures 11 46.6 47.4
Other investments 1.3 1.3
578.0 535.6
Current assets
Inventory 4.3 2.0
Trade and other receivables 82.1 84.7
Current income tax assets 2.7 2.0
Cash and cash equivalents 18.2 15.3
107.3 104.0
Total assets 685.3 639.6
Equity and liabilities
Equity attributable to equity holders of the parent
Share capital 13 8.3 8.9
Share premium 182.6 182.6
Retained earnings 1,275.9 1,437.9
Own shares held 14 (31.9) (31.6)
Capital reorganisation reserve (1,060.8) (1,060.8)
Capital redemption reserve 2.3 1.7
Other reserves 30.7 30.7
Total equity 407.1 569.4
Liabilities
Non-current liabilities
Borrowings 12 163.4 -
Provisions 3.7 1.6
Lease liabilities 10 42.0 0.4
Deferred income 6.6 7.2
Deferred taxation liabilities 0.6 -
216.3 9.2
Current liabilities
Trade and other payables 60.1 57.9
Provisions 1.2 1.0
Lease liabilities 10 0.6 2.1
61.9 61.0
Total liabilities 278.2 70.2
Total equity and liabilities 685.3 639.6
The financial statements were approved by the Board of Directors on 21 May
2026 and authorised for issue:
Jamie Warner
Chief Financial Officer
Autotrader Group plc
Registered number: 09439967
21 May 2026
Consolidated statement of changes in equity
For the year ended 31 March 2026
Note Share Share Retained Own shares Capital Capital Other Total
capital premium earnings held reorganisation redemption reserves equity
£m £m £m £m reserve reserve £m £m
£m £m
Balance at 31 March 2024 9.2 182.6 1,420.5 (31.3) (1,060.8) 1.4 30.7 552.3
Profit for the year - - 282.6 - - - - 282.6
Other comprehensive income:
Remeasurements of post-employment benefit obligations, net of tax - - (0.5) - - - - (0.5)
Total comprehensive income, net of tax - - 282.1 - - - - 282.1
Transactions with owners
Employee share schemes - value of employee services - - 9.7 - - - - 9.7
Exercise of employee share schemes - - (9.4) 10.5 - - - 1.1
Tax impact of employee share schemes - - 0.8 - - - - 0.8
Purchase of own shares for treasury - - - (10.8) - - - (10.8)
Purchase of own shares for cancellation (0.3) - (177.4) - - 0.3 - (177.4)
Dividends paid - - (88.4) - - - - (88.4)
Total transactions with owners, recognised directly in equity (0.3) - (264.7) (0.3) - 0.3 - (265.0)
Balance at 31 March 2025 8.9 182.6 1,437.9 (31.6) (1,060.8) 1.7 30.7 569.4
Profit for the year - - 293.9 - - - - 293.9
Other comprehensive income:
Remeasurements of post-employment benefit obligations, net of tax - - (0.1) - - - - (0.1)
Total comprehensive income, net of tax - - 293.8 - - - - 293.8
Transactions with owners
Employee share schemes - value of employee services - - 9.2 - - - - 9.2
Exercise of employee share schemes - - (8.5) 10.4 - - - 1.9
Tax impact of employee share schemes - - (2.1) - - - - (2.1)
Purchase of own shares for treasury - - - (10.7) - - - (10.7)
Purchase of own shares for cancellation (0.6) - (360.3) - - 0.6 - (360.3)
Dividends paid - - (94.1) - - - - (94.1)
Total transactions with owners, recognised directly in equity (0.6) - (455.8) (0.3) - 0.6 - (456.1)
Balance at 31 March 2026 8.3 182.6 1,275.9 (31.9) (1,060.8) 2.3 30.7 407.1
Consolidated statement of cash flows
For the year ended 31 March 2026
Note 2026 2025
£m £m
Cash flows from operating activities
Cash generated from operations 16 418.0 399.7
Income taxes paid (95.2) (95.1)
Net cash generated from operating activities 322.8 304.6
Cash flows from investing activities
Purchases of intangible assets (0.1) -
Purchases of property, plant and equipment (27.3) (4.0)
Proceeds from sale of property, plant and equipment 4.5 0.3
Dividends received from joint ventures 4.9 4.4
Interest received on cash and cash equivalents 1.3 0.9
Net cash used in investing activities (16.7) 1.6
Cash flows from financing activities
Dividends paid to Company's shareholders 15 (94.1) (88.4)
Drawdown of Syndicated revolving credit facility 12 165.0 -
Repayment of Syndicated revolving credit facility 12 - (30.0)
Payment of refinancing fees 12 - (0.3)
Payment of interest on borrowings 5 (2.8) (1.2)
Payment of lease liabilities 10 (1.8) (2.5)
Purchase of own shares for cancellation 13 (358.4) (176.6)
Purchase of own shares for treasury 14 (10.7) (10.7)
Payment of fees on purchase of own shares (1.9) (0.9)
Contributions to defined benefit pension scheme (0.5) (0.1)
Proceeds from exercise of share-based incentives 2.0 1.1
Net cash used in financing activities (303.2) (309.6)
Net increase/(decrease) in cash and cash equivalents 2.9 (3.4)
Cash and cash equivalents at beginning of year 15.3 18.7
Cash and cash equivalents at end of year 18.2 15.3
Notes to the consolidated financial statements
1. General information
Basis of preparation
The Consolidated financial statements have been prepared in accordance with
the requirements of the Companies Act 2006 and in accordance with UK-adopted
international accounting standards. The Consolidated financial statements have
been prepared on the going concern basis and under the historical cost
convention except for equity investments which are carried at fair value. The
Group's principal business is the operation of the Autotrader platforms which
form the UK's largest automotive marketplace.
The following amendments to standards have been adopted by the Group for the
first time for the financial year beginning on 1 April 2025:
· Lack of Exchangeability (Amendments to IAS 21)
The adoption of these amendments has had no material effect on the Group's
Consolidated financial statements.
There are a number of amendments to IFRS that have been issued by the IASB
that, when endorsed in the UK, will become effective in a subsequent
accounting period including:
· Classification and Measurement of Financial Instruments
(Amendments to IFRS 7 and IFRS 9)
· Presentation and Disclosure in Financial Statements (IFRS 18)
· Subsidiaries without Public Accountability Disclosures (IFRS 19)
· IAS 21 The Effects of Changes in Foreign Exchange Rates
· Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)
· Statements and IAS 28 Investments in Associates and Joint
Ventures
Based on initial assessments performed to date, the Group does not expect IFRS
18 to have a material impact on the Consolidated financial statements, with
the primary effect being presentational changes to the disclosure of the joint
venture. The Group does not expect the other amendments to have an impact on
the Consolidated financial statements.
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 March 2026 or 31 March 2025 but is
derived from those accounts. Statutory accounts for 31 March 2025 have been
delivered to the registrar of companies, and those for 31 March 2026 will be
delivered in due course. The auditor has reported on those accounts; their
reports were (i) unqualified, (ii) did not include a reference to any matters
to which the auditor drew attention by way of emphasis without qualifying
their report and (iii) did not contain a statement under section 498 (2) or
(3) of the Companies Act 2006.
Going concern
During the year ended 31 March 2026 the Group has continued to generate
significant cash from operations. The Group has an overall positive net asset
position and had cash balances of £18.2m at 31 March 2026 (2025: £15.3m).
During the year, £463.2m was returned to shareholders through share buybacks
and dividends (2025: £275.7m).
The Group has access to a Syndicated revolving credit facility (the
'Syndicated RCF'). At 31 March 2026, the Group had £165.0m (2025: £nil)
drawn of its £200.0m Syndicated RCF, which is available until February 2030.
Following year end, the Syndicated RCF was increased to £300.0m.
Cash flow projections for a period of not less than 12 months from the date of
this report have been prepared. Severe scenarios have been modelled to make
the assessment of going concern, taking into account a severe macroeconomic
shock, a cyber attack and increased competition within the next 12 months. The
results of the stress testing demonstrated that due to the Group's significant
free cash flow, access to the Syndicated RCF and the Board's ability to adjust
the discretionary share buyback programme, the Group would be able to
withstand the impact and remain cash generative. Following the year end, the
Group has generated cash flows in line with its forecast and there are no
events that have adversely impacted the Group's liquidity.
After making enquiries and on the basis of current financial projections and
facilities available, the Directors believe that the Group has adequate
financial resources to continue in operation for a period not less than 12
months from the date of this report. For this reason, they continue to adopt
the going concern basis in preparing the financial statements.
Accounting estimates and judgements
The preparation of financial statements in conformity with UK-adopted
international accounting standards requires the use of certain accounting
estimates and assumptions. It also requires management to exercise its
judgement in the process of applying the Group's accounting policies.
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
The key assumptions concerning the future, and other key sources of estimation
uncertainty at the balance sheet date, that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are discussed below.
Carrying values of goodwill (judgement and estimate)
The Group tests annually whether goodwill held by the Group has suffered any
impairment in accordance with its accounting policy. The Group has two cash
generating units, Digital and Autorama. Estimation is required for the
assumptions used in the calculation of the recoverable amounts of each cash
generating unit.
2. Segmental information
IFRS 8 'Operating segments' requires the Group to determine its operating
segments based on information which is provided internally. Based on the
internal reporting information and management structures within the Group, it
has been determined that there are two operating segments (2025: two operating
segments). The Group's reportable operating segments have therefore been
identified as follows:
· Autotrader - includes the results of Autotrader and AutoConvert
in respect of online classified advertising of motor vehicles and other
related products and services in the digital automotive marketplace including
profit from the Dealer Auction joint venture.
· Autorama - the results of Autorama in respect of a marketplace
for leasing new vehicles and other related products and services.
Management has determined that there are two operating segments in line with
the nature in which the Group is managed. The reports reviewed by the
Autotrader Leadership Team ('ALT'), which is the chief operating
decision-maker ('CODM') for both segments, splits out operating performance by
segment. The ALT is made up of the Executive Directors and Key Management and
is responsible for the strategic decision-making of the Group. Revenue and
cost streams for each operating segment are largely independent in the
reporting period.
The ALT primarily uses the measures of revenue and operating profit to assess
the performance of each operating segment. Segment revenue comprises revenue
from external customers and is reported to the ALT is measured in a manner
consistent with that in the income statement. Inter-segment revenue and costs
are not reported to the ALT. In the year to 31 March 2025, inter-segment
revenue earned by Autotrader from Autorama for vehicles leased via a journey
initiated on the Autotrader platform was not material (2025: £nil).
From financial year 2027, Autorama will operate and be reported as a single
operating segment with the rest of the Autotrader Group. This is due to more
than half of all leasing transactions being delivered through the Autotrader
platform in financial year 2026.
Analysis of the Group's revenue and results for both reportable segments, with
a reconciliation to Group profit before tax is shown below:
Year to March 2026 Autotrader segment Autorama segment Group Group
central costs
£m £m
£m
£m
Total segment revenue 585.3 39.0 - 624.3
People costs (93.6) (6.8) - (100.4)
Marketing (21.9) (1.4) - (23.3)
Costs of goods sold - (29.9) - (29.9)
Digital Services Tax (10.6) - - (10.6)
Other costs (45.9) (2.2) - (48.1)
Depreciation & amortisation (9.4) (0.7) (13.3) (23.4)
Total segment costs (181.4) (41.0) (13.3) (235.7)
Share of profit from joint ventures 4.1 - - 4.1
Total segment operating profit/(loss) 408.0 (2.0) (13.3) 392.7
Finance costs - net (3.9)
Profit before tax 388.8
Group central costs are not allocated to the operating profit/(loss) reported
to the CODM for either operating segment. For the year ending 31 March 2026,
an amortisation expense of £13.3m (2025: £12.9m) was recognised in relation
to the fair value of the brand, technology and other assets acquired in the
Group's business combination of Autorama.
Year to March 2025 Autotrader segment Autorama segment Group Group
central costs
£m £m
£m
£m
Total segment revenue 564.8 36.3 - 601.1
People costs (92.8) (7.4) - (100.2)
Marketing (24.6) (2.7) - (27.3)
Costs of goods sold - (26.2) - (26.2)
Digital Services Tax (10.2) - - (10.2)
Other costs (40.5) (2.8) - (43.3)
Depreciation & amortisation (6.3) (1.5) (12.9) (20.7)
Total segment costs (174.4) (40.6) (12.9) (227.9)
Share of profit from joint ventures 3.6 - - 3.6
Total segment operating profit/(loss) 394.0 (4.3) (12.9) 376.8
Finance costs - net (1.1)
Profit before tax 375.7
3. Revenue
The Group's revenue is derived from contracts with customers. All revenues
were earned from activities and customers in the United Kingdom.
In the following table, the Group's revenue is detailed by customer type. This
level of detail is consistent with that used by management to assist in the
analysis of the Group's revenue-generating trends.
Revenue 2026 2025
£m £m
Retailer 501.1 480.0
Home Trader 16.7 16.1
Other 13.5 13.0
Trade 531.3 509.1
Consumer Services 38.8 42.4
Manufacturer & Agency 15.2 13.3
Autorama 39.0 36.3
Total revenue 624.3 601.1
4. Operating profit
Operating profit is after (charging)/crediting the following:
Note 2026 2025
£m £m
Staff costs (100.4) (100.0)
Contractor costs - (0.2)
Depreciation of property, plant and equipment 9 (8.2) (5.2)
Amortisation of intangible assets 8 (15.2) (15.5)
Profit on sale of property, plant and equipment 0.6 -
5. Net finance costs
2026 2025
£m £m
On bank loans and overdrafts 2.8 1.1
Amortisation of debt issue costs 0.4 0.5
Interest unwind on lease liabilities 1.7 0.1
Interest on vehicle stocking loan 0.3 0.3
Interest receivable on cash and cash equivalents (1.3) (0.9)
Total 3.9 1.1
6. Taxation
2026 2025
£m £m
Current taxation
UK corporation taxation 95.1 96.5
Adjustments in respect of prior years 0.1 0.4
Total current taxation 95.2 96.9
Deferred taxation
Origination and reversal of temporary differences (0.1) (3.4)
Adjustments in respect of prior years (0.2) (0.4)
Total deferred taxation (0.3) (3.8)
Total taxation charge 94.9 93.1
The taxation charge for the year is slightly lower (2025: lower than) the
effective rate of corporation tax in the UK of 25% (2025: 25%). The
differences are explained below:
2026 2025
£m £m
Profit before taxation 388.8 375.7
Tax on profit at the standard UK corporation tax rate of 25% (2025: 25%) 97.2 93.9
Expenses not deductible for taxation purposes 0.1 0.4
Share of joint venture taxation (1.1) (0.9)
Adjustments in respect of OCI group relief (0.3) (0.3)
Adjustments in respect of prior years (0.1) -
Impact of property disposal (0.9) -
Total taxation charge 94.9 93.1
The taxation charge for the year is based on the standard rate of UK
corporation tax for the period of 25% (2025: 25%). Deferred income taxes have
been measured at the tax rate expected to be applicable at the date the
deferred income tax assets and liabilities are realised.
The impact of a property disposal of £0.9m (2025: £nil) relates to the fair
value adjustment of the Autorama property which was recognised as part of the
business combination in the year ended 31 March 2023. As the property was sold
in the current year, the deferred tax liability has been released to the
Consolidated income statement.
Taxation on items taken directly to equity was a credit of £2.1m (2025: debit
of £0.8m) relating to tax on share-based payments.
Taxation recorded in equity within the Consolidated statement of comprehensive
income was a release of £0.1m (2025: release of £0.5m) relating to
post-employment benefit obligations.
The Group continues to exceed the threshold for in-scope revenue for UK
Digital Services Tax ('UK DST'), resulting in an operating expense of £10.6m
(2025: £10.2m).
7. Earnings per share
Basic earnings per share is calculated using the weighted average number of
ordinary shares in issue during the year, excluding those held in treasury and
by the Employee Share Option Trust ('ESOT'), based on the profit for the year
attributable to shareholders.
Weighted average Total Pence
number of ordinary shares earnings per share
£m
Year ended 31 March 2026
Basic EPS 860,235,092 293.9 34.17
Diluted EPS 862,666,250 293.9 34.07
Year ended 31 March 2025
Basic EPS 892,418,234 282.6 31.66
Diluted EPS 895,392,458 282.6 31.56
The number of shares in issue at the start of the year is reconciled to the
basic and diluted weighted average number of shares below:
2026 2025
Issued ordinary shares at 1 April 884,700,426 907,213,454
Weighted effect of ordinary shares purchased for cancellation (19,302,233) (9,986,345)
Weighted effect of ordinary shares held in treasury (4,875,126) (4,507,565)
Weighted effect of shares held in the ESOT (287,975) (301,310)
Weighted average number of shares for basic EPS 860,235,092 892,418,234
Dilutive impact of share options outstanding 2,431,158 2,974,224
Weighted average number of shares for diluted EPS 862,666,250 895,392,458
For diluted earnings per share, the weighted average number of shares for
basic EPS is adjusted to assume conversion of all potentially dilutive
ordinary shares. The Group has potentially dilutive ordinary shares arising
from share options granted to employees. Options are dilutive where the
exercise price together with the future IFRS 2 charge is less than the average
market price of the ordinary shares during the year. Options under the
Performance Share Plan, the Single Incentive Plan Award for the Autotrader
Leadership Team and certain key employees, the Single Incentive Plan Award for
all employees, the Deferred Annual Bonus Plan and the Share Incentive Plan are
contingently issuable shares and are therefore only included within the
calculation of diluted EPS if the performance conditions are satisfied.
The average market value of the Group's shares for the purposes of calculating
the dilutive effect of share-based incentives was based on quoted market
prices for the period during which the share-based incentives were
outstanding.
8. Intangible assets
Goodwill Software Financial Brand Other Total
and website development costs
systems
£m
£m £m £m
£m £m
Cost
At 31 March 2024 544.6 24.5 13.1 48.2 29.7 660.1
Additions - - - - - -
Disposals - (2.6) - - - (2.6)
At 31 March 2025 544.6 21.9 13.1 48.2 29.7 657.5
Transferred from work in progress - 0.1 - - - 0.1
Disposals - (1.4) - - - (1.4)
At 31 March 2026 544.6 20.6 13.1 48.2 29.7 656.2
Accumulated amortisation and impairments
At 31 March 2024 117.0 9.9 13.1 12.2 20.2 172.4
Amortisation charge - 2.7 - 11.2 1.6 15.5
Disposals - (2.6) - - - (2.6)
At 31 March 2025 117.0 10.0 13.1 23.4 21.8 185.3
Amortisation charge - 2.5 - 11.2 1.5 15.2
Disposals - (1.4) - - - (1.4)
At 31 March 2026 117.0 11.1 13.1 34.6 23.3 199.1
Net book value at 31 March 2026 427.6 9.5 - 13.6 6.4 457.1
Net book value at 31 March 2025 427.6 11.9 - 24.8 7.9 472.2
Net book value at 31 March 2024 427.6 14.6 - 36.0 9.5 487.7
Other intangibles include customer relationships, technology, trade names,
trademarks and non-compete agreements. Intangible assets which have a finite
useful life are carried at cost less accumulated amortisation. Amortisation of
these intangible assets is calculated using the straight-line method to
allocate the cost of the assets over their estimated useful lives (principally
between 3 to 15 years). The longest estimated useful life remaining at 31
March 2026 was 9 years (2025: 10 years).
For the year to 31 March 2026, the amortisation charge of £15.2m (2025:
£15.5m) has been charged to operating costs in the Consolidated income
statement.
At 31 March 2026, there were no software and website development costs
representing assets under construction (2025: £nil).
In accordance with UK-adopted international accounting standards, goodwill is
not amortised, but instead is tested annually for impairment, or more
frequently if there are indicators of impairment. Goodwill is carried at cost
less accumulated impairment losses.
9. Property, plant and equipment
Land, buildings and leasehold improvements Office Motor Work In Total
vehicles
£m equipment
Progress £m
£m
£m £m
Cost
At 31 March 2024 23.0 10.5 1.6 - 35.1
Additions 0.2 1.2 0.3 2.6 4.3
Disposals (0.2) (2.9) (1.0) - (4.1)
At 31 March 2025 23.0 8.8 0.9 2.6 35.3
Additions 48.2 1.2 0.1 23.3 72.8
Transferred from work in progress into use 21.1 3.9 - (25.1) (0.1)
Disposals (19.4) (0.6) (0.2) (0.8) (21.0)
At 31 March 2026 72.9 13.3 0.8 - 87.0
Accumulated depreciation
At 31 March 2024 12.2 6.8 1.2 - 20.2
Charge for the year 3.4 1.5 0.3 - 5.2
Disposals (0.2) (2.5) (0.8) - (3.5)
At 31 March 2025 15.4 5.8 0.7 - 21.9
Charge for the year 6.5 1.6 0.1 - 8.2
Disposals (15.4) (0.5) (0.2) - (16.1)
At 31 March 2026 6.5 6.9 0.6 - 14.0
Net book value at 31 March 2026 66.4 6.4 0.2 - 73.0
Net book value at 31 March 2025 7.6 3.0 0.2 2.6 13.4
Net book value at 31 March 2024 10.8 3.7 0.4 - 14.9
Included within property, plant and equipment are £42.6m (2025: £2.8m) of
assets recognised as leases under IFRS 16. Further details of these leases are
disclosed in note 10.
During the period, the Group completed the planned relocation of its head
office. Expenditure of £25.1m relating to the fit-out of the new premises was
initially capitalised as work in progress and was transferred to property,
plant and equipment in January 2026 when the office became available for use.
£0.1m relating to software was transferred to Intangible assets (see note 8).
Depreciation also commenced on this date.
During the year, £8.1m (2025: £2.6m) worth of property, plant and equipment
with £nil net book value was disposed of as part of the head office move.
Disposals of £21.0m in the year predominately relate to the disposal of
assets and office equipment leases as part of the head office move. £8.1m
(2025: £2.9m) of these disposals had a £nil net book value. The property in
Hemel Hempstead was also sold in the year, which had a net book value of
£3.3m.
The depreciation expense of £8.2m for the year to 31 March 2026 (2025:
£5.2m) has been recorded
in operating costs.
10. Leases
The Group's lease assets are held within property, plant and equipment.
Information about leases for which the Group is a lessee is presented below.
2026 2025
£m £m
Net book value property, plant and equipment owned 30.6 10.6
Net book value right of use assets 42.4 2.8
73.0 13.4
Net book value of right of use assets Land, buildings and leasehold improvements Office Motor Total
vehicles
£m equipment
£m
£m
£m
At 31 March 2024 4.4 0.2 0.4 5.0
Additions - 0.1 0.2 0.3
Disposals - - (0.2) (0.2)
Depreciation charge (2.0) (0.1) (0.2) (2.3)
At 31 March 2025 2.4 0.2 0.2 2.8
Additions 44.3 0.2 - 44.5
Disposals (0.2) - - (0.2)
Depreciation charge (4.5) (0.1) (0.1) (4.7)
At 31 March 2026 42.0 0.3 0.1 42.4
Lease liabilities in the balance sheet at 31 March 2026 2025
£m £m
Current 0.6 2.1
Non-current 42.0 0.4
Total 42.6 2.5
Certain lease rentals are subject to periodic market rental reviews.
The lease for the Group's new head office commenced in June 2025, giving rise
to a right-of-use asset of £44.1m and a corresponding lease liability of
£40.1m. The lease relating to the Group's former premises terminated in March
2026.
2026 2025
Amounts charged in the income statement £m £m
Depreciation charge of right of use assets 4.7 2.3
Interest on lease liabilities 1.7 0.1
Total amounts charged in the income statement 6.4 2.4
Cash outflow 2026 2025
£m £m
Total cash outflow for leases 1.8 2.5
11. Net investments in joint ventures
Joint ventures are contractual arrangements over which the Group exercises
joint control with partners and where the parties have rights to the net
assets of the arrangement, irrespective of the Group's shareholding in the
entity.
The Group owns 49% of the ordinary share capital of Dealer Auction Limited.
The basis of the Group's joint control is through a shareholder agreement and
an assessment of the substantive rights of each shareholder, including
operational barriers or incentives that would prevent or deter rights being
exercised.
Net investments in joint ventures at the reporting date include the Group's
equity investment in joint ventures and the Group's share of the joint
ventures' post-acquisition net assets. The table below reconciles the movement
in the Group's net investment in joint ventures in the year:
Equity investments in joint ventures Share of post acquisition net assets Net investments
in joint ventures
£m £m
£m
Carrying value
As at 31 March 2024 33.5 14.7 48.2
Share of result for the year taken to the income statement - 3.6 3.6
Dividends received in the year (4.4) - (4.4)
As at 31 March 2025 29.1 18.3 47.4
Share of result for the year taken to the income statement - 4.1 4.1
Dividends received in the year (4.9) - (4.9)
As at 31 March 2026 24.2 22.4 46.6
Set out below is the summarised financial information for the joint venture,
adjusted for differences in accounting policies between the Group and the
joint venture. The table also reconciles the summarised financial information
to the carrying amount of the Group's interest in the joint venture.
2026 2025
£m £m
Non-current assets 92.2 93.3
Current assets
Cash and cash equivalents 6.4 6.5
Other current assets 1.6 2.1
Total assets 100.2 101.9
Liabilities
Current liabilities 4.4 4.6
Total liabilities 4.4 4.6
Net assets 95.8 97.3
Group's share of net assets 46.6 47.4
2026 2025
£m £m
Revenues 18.4 16.3
Profit for the year 8.5 7.3
Total comprehensive income 8.5 7.3
Group's share of comprehensive income 4.1 3.6
Dividends received by the Group 4.9 4.4
12. Borrowings
Non-current 2026 2025
£m £m
Syndicated RCF gross of unamortised debt issue costs 165.0 -
Unamortised debt issue costs on Syndicated RCF (1.6) -
Total borrowings 163.4 -
Unamortised debt issue costs on the Syndicated RCF increased to £1.6m in the
year. In the prior period, as there was £nil drawn of the Syndicated RCF,
these costs were presented in prepayments and totalled £2.1m.
Borrowings are repayable as follows:
2026 2025
£m £m
Less than one year - -
Two to five years 165.0 -
Total 165.0 -
The carrying amounts of borrowings approximate their fair values.
Syndicated revolving credit facility ('Syndicated RCF')
The Group has access to an unsecured Syndicated Revolving Credit Facility (the
'Syndicated RCF'). Associated debt transaction costs total £6.5m, with £3.3m
being incurred at initiation and £3.2m of additional costs associated with
extension requests.
With effect from 1 February 2023, the Group entered into an Amendment and
Restatement Agreement to extend the term of the facility for five years from
the date of signing and to further reduce the capacity of the facility to
£200.0m. During 2024 the Group extended the Syndicated RCF by one year to
February 2029, and on 1 February 2025, exercised the second extension option,
extending the term of the facility by a further one year to February 2030. At
year end, until February 2029 the available facility was £200.0m, reducing to
£165.0m thereafter due to one lender not participating in the second
extension option. After the year end, the available facility was increased to
£300.0m and extended to February 2030. No further extensions are permitted
under the current agreement.
There is no change to the interest rate payable and there is no requirement to
settle all or part of the debt before the termination date stated. The
associated debt transaction costs of the second extension were £0.3m, which
were paid in the prior period.
Individual tranches are drawn down, in sterling, for periods of up to six
months at the compounded reference rate (being the aggregate of SONIA for that
interest period) plus a margin of between 1.2% and 2.1% depending on the
consolidated leverage ratio of the Group. As part of the Amendment and
Restatement Agreement of the Syndicated RCF in 2023, three sustainability
performance targets were incorporated into the agreement (to be tested
annually with 2024 being the first period of testing). The margin shall be
increased or decreased between -0.05% and 0.05% based on the number of
sustainability performance targets achieved in the reporting period. A
commitment fee of 35% of the margin applicable to the Syndicated RCF is
payable quarterly in arrears on unutilised amounts of the total facility.
The Syndicated RCF has financial covenants linked to interest cover and the
consolidated debt cover of the Group:
· Net bank debt to EBITDA must not exceed 3.5:1.
· EBITDA to Net Interest Payable must not be less than 3.0:1.
EBITDA is defined as earnings before interest, taxation, depreciation and
amortisation, share-based payments and associated NI, share of profit from
joint ventures and exceptional items.
All financial covenants of the facility have been complied with through the
period.
Exposure to interest rate changes
The exposure of the Group's borrowings (excluding debt issue costs) to SONIA
rate changes and the contractual repricing dates at the balance sheet date are
as follows:
2026 2025
£m £m
One month or less 165.0 -
Total 165.0 -
13. Share capital
Share capital 2026 2025
Number Amount Number Amount
'000 £m '000 £m
Allotted, called-up and fully paid ordinary shares of 1p each
At 1 April 884,701 8.9 907,214 9.2
Purchase and cancellation of own shares (57,198) (0.6) (22,513) (0.3)
Total 827,503 8.3 884,701 8.9
Under resolutions passed at the 2024 and 2025 AGMs the Company is authorised
to make market purchases of up to a maximum of 10% of its own ordinary shares
(excluding shares held in treasury), subject to minimum and maximum price
restrictions. In the year ended 31 March 2026, a total of 58,493,141 ordinary
shares of £0.01 were purchased. The average price paid was 630.1p with a
total consideration paid (including fees of £1.9m) of £371.0m. Of all shares
purchased, 1,295,147 were held in treasury with 57,197,994 being cancelled.
Included within shares in issue at 31 March 2026 are 282,389 (2025: 294,600)
shares held by the ESOT and 4,412,082 (2025: 4,600,897) shares held in
treasury, as detailed in note 14.
14. Own shares held
Own shares held - £m ESOT shares reserve Treasury Total
shares
£m
£m
£m
Own shares held as at 31 March 2024 (0.4) (30.9) (31.3)
Repurchase of own shares for treasury - (10.8) (10.8)
Share-based incentives exercised - 10.5 10.5
Own shares held as at 31 March 2025 (0.4) (31.2) (31.6)
Repurchase of own shares for treasury - (10.7) (10.7)
Share-based incentives exercised - 10.4 10.4
Own shares held as at 31 March 2026 (0.4) (31.5) (31.9)
Own shares held - number ESOT shares reserve Treasury Total
Number of shares shares Number of shares
Number of shares
Own shares held as at 31 March 2024 312,831 4,899,346 5,212,177
Transfer of shares from ESOT (18,231) - (18,231)
Purchase of own shares for treasury - 1,360,000 1,360,000
Share-based incentives exercised - (1,658,449) (1,658,449)
Own shares held as at 31 March 2025 294,600 4,600,897 4,895,497
Transfer of shares from ESOT (12,211) - (18,231)
Purchase of own shares for treasury - 1,295,147 1,295,147
Share-based incentives exercised - (1,483,962) (1,483,962)
Own shares held as at 31 March 2026 282,389 4,412,082 4,694,471
15. Dividends
Dividends declared and paid by the Company were as follows:
2026 2025
Pence £m Pence £m
per share per share
2025 final dividend paid 7.1 62.0 6.4 57.3
2026 interim dividend paid 3.8 32.1 3.5 31.1
10.9 94.1 9.9 88.4
The proposed final dividend for the year ended 31 March 2026 of 7.8p per
share, totalling £62.2m, is subject to approval by shareholders at the Annual
General Meeting ('AGM') and hence has not been included as a liability in the
financial statements.
16. Cash generated from operations
2026 2025
£m £m
Profit after tax 293.9 282.6
Adjustments for:
Tax charge 94.9 93.1
Depreciation 8.2 5.2
Amortisation 15.2 15.5
Share-based payments charge (excluding associated NI) 9.2 9.7
Share of profit from joint ventures (4.1) (3.6)
Profit on sale of property, plant and equipment (0.6) -
Finance costs 3.9 1.1
Research & Development Expenditure Credit (0.8) (2.3)
Post employment expenses relating to the defined benefit scheme 0.6 -
Dilapidation provision release (0.5) -
( )
Changes in working capital:
Trade and other receivables (0.5) 0.6
Trade and other payables 0.7 (3.0)
Inventory (2.3) 0.6
Provisions 0.2 0.2
Cash generated from operations 418.0 399.7
17. Post balance sheet events
On 15 May 2026, the Group accessed its £100.0m accordion, increasing its
existing debt facility to £300.0m. Debt fees of £0.7m were incurred and will
be amortised over the facility term. All lenders are now committed to the
maturity date of February 2030 and there are no changes to the terms of the
Syndicated RCF.
18. Contingent liabilities
On 27 March 2026, the Competition and Markets Authority ('CMA'), exercising
its new direct consumer enforcement powers, announced an investigation into a
number of companies in relation to online consumer reviews, including
Autotrader and our third-party moderator, Feefo. The Group has no additional
information from the regulator to better understand their specific concerns,
but we endeavour always to operate as a responsible and compliant business and
will co-operate fully with the CMA's investigation. Consequently, the
potential for any future liability remains uncertain
therefore this matter is disclosed as a contingent liability.
On 30 March 2026, the Financial Conduct Authority ('FCA') set out confirmation
of a consumer redress scheme for certain commissions earned on historic motor
finance agreements. On 1 May, the FCA confirmed that the scheme had been
subject to legal challenges from several lenders. The challenges will be
referred to the Upper Tribunal where they will be subject to judge-led review,
and therefore the scheme's launch has been paused. We continue to believe that
Autotrader has no direct liability or financial exposure, but we continue to
monitor developments closely, including the impact on the wider financial
health of the automotive market.
Principal risks and uncertainties
Risk POTENTIAL IMPACT CHANGES IN THE YEAR
1. Macro risks In a connected, global industry, we are exposed to the impacts of macro events · Geopolitical instability remains high and we tend to feel the disruption
from around the globe, as are our customers and consumers. We consider there caused by knock-on impacts. Disrupted supply chains, for example, have a
to be a threat to the short-to-mid-term performance of our business posed by latent impact on used car stock pipeline, and there are signs that the
unpreventable macro events. Such events could result in our customers being conflict in the middle east could cause inflation, higher finance and running
unable to trade, leading to loss of revenue, stock, audience and market share. costs, all of which can affect the affordability of cars for some consumers.
· Our ambitions to grow in new car could increase our exposure to the direct
impacts of macro risks. Supply chain disruption, for example, will impact on
new car stock available to advertise on Autotrader.
· Despite continued geo-political instability, we remain financially
resilient to major shocks and incidents. We remain highly cash generative.
2. Automotive economy, market and business environment Adverse changes in supply versus demand for new/used cars will affect retailer · This year saw a tough trading environment for our customers. Higher
profitability. Higher operating costs and interest rates could also affect operating costs and interest rates on stocking loans during the last year put
retailer profitability and reduce their advertising spend with Autotrader. financial pressures on our customers, affecting their profitability.
High cost of living and interest rates could affect car buyers' ability to · New car supply increased in FY26, including strong supply from Chinese
afford a change of vehicle, affecting demand. manufacturers. This, coupled with consistently high consumer demand,
presents a positive outlook for the used car market in the coming years.
· The FCA's redress scheme for mis-sold car finance does not impact us
directly and whilst there will be an impact on lenders, the FCA have stated
that the impact on the automotive finance market will be "limited", reducing
the level of uncertainty that we have seen in prior years.
· Whilst some OEMs have transitioned to the agency model, many have remained
with the retailer franchise model and new entrants are typically opting for
the retailer franchise model, reducing the threat that this risk poses.
3. Legal and regulatory compliance The Group operates in a complex regulatory environment. As we progress with · The Digital Markets, Competition, & Consumers Act came into force
our strategy, we have to navigate increased exposure to legal and regulatory during the financial year. This places new obligations on organisations
risks, particularly those relating to financial services and data protection. around consumer protections, including Dealer Reviews, and we have taken
Failure to comply with legal and regulatory requirements could lead to several measures to comply. In March 2026, the CMA announced an investigation
reputational damage, financial or criminal penalties and impact on our ability into online reviews across a number of companies, including Autotrader and
to execute our strategic objectives. our third-party moderator Feefo. The investigation is still in the very early
stages and Autotrader is cooperating fully with the CMA.
· Over the last year we have reviewed our counter-fraud arrangements
following introduction of the Economic Crime and Corporate Transparency Act.
We have also reviewed our arrangements around protecting users of our website
from illegal/harmful content, which is important to comply with the Online
Safety Act.
· Our obligations under GDPR and FCA regulations will continue as we scale
and evolve Leasing, Deal Builder and Buying Signals, as well as our ambitions
in new car. Our Governance, Risk and Compliance ('GRC') team partners with
product teams to build compliance into the design of our products.
· The regulated entities within the Group continue to comply with the FCA's
Senior Managers & Certification Regime and relevant individuals have been
assessed and certified as Fit and Proper. All employees are subject to the
FCA's Conduct Rules and have received appropriate training and guidance
4. Competition External measures show that we have the largest and most engaged automotive · The emergence of agentic AI presents opportunity but also has the potential
audience. Nevertheless, we remain wary of competitive threats, including to disrupt online marketplaces. Risks include: AI being used to
big-tech and social media, who could develop products which fundamentally disintermediate marketplaces like Autotrader; and AI being used to direct
disrupt the car buying journey, and/or provide superior products for consumers directly to relevant adverts, negating the need for retailers to
retailers. This could lead to a loss of market share. purchase prominence.
· Large technology organisations continue to operate in segments of the
automotive sector. We expect Amazon to launch Amazon Autos in the UK which
would be a new competitor.
· Despite these factors, our marketplace remains strong and last year saw
continued record levels of cross-platform visits.
5. IT systems and cyber security As a digital business, we rely on our IT infrastructure to provide our · Our Cyber Security and Disaster Recovery Forums have continued to monitor
services. A disruptive cyber security and/or business continuity incident the number and severity of incidents and vulnerabilities. We have not
could lead to downtime of our systems and infrastructure. Execution of our experienced any major or material disruptions or cyberattacks in the last
strategy also relies on us making appropriate investments in secure systems year.
and technologies. Failure to invest in appropriate technology and safeguards
could lead to us failing to achieve our objectives. · We continuously monitor the external environment for cyber security
threats. Over the last year we have continued to invest heavily in our
Delivery of our strategic objectives relies on us using data to provide technology platform and in our cyber defences.
valuable insights to customers. A significant data breach, whether because of
internal threat or an external cyber-attack, would lead to a loss in · Recently, Anthropic have withheld the public release of their Mythos AI
confidence by the public, our suppliers, retailers and advertisers. model due to its ability to autonomously discover and exploit "zero-day"
cybersecurity vulnerabilities. As AI models become increasingly
sophisticated, there is a risk that they could be used by bad actors.
· We are also monitoring how quantum computing could evolve, which poses
threats to security if they are used by bad actors.
· We have rolled out secure and confidential AI tools for all employees to
enable them to use AI in their day-to-day roles. Our Cyber Security forum
oversees AI use from a security perspective, and our Product & Technology
Community is leading on developing AI tools, both for employee productivity
and for customer- and consumer-facing products.
· We successfully rolled out Mac laptops to all employees and have built
improved physical security into the design of our new Manchester office.
6. Employees To enable us to achieve our strategic objectives it is important that we · In January 2026 we moved to a new, state-of-the-art office in Manchester.
continue to attract, retain and motivate a highly skilled workforce, including This increased capacity and improved our facilities, enabling better
those with specialist skillsets in data and technology. Delivery of our collaboration and productivity.
strategy is also dependent on us maintaining a diverse, inclusive and
representative workforce, a supportive, collaborative culture and a safe · Political and societal polarisation continues to be a threat, and this has
environment, all of which will enable optimum performance from all our the potential to affect our employees and affect our culture and morale.
employees.
· From a culture and morale perspective, the second half of the year has been
difficult for our employees. Factors include some restructuring during FY26;
the recent fall in our share price; and negative sentiment from retailers in
response to the scaling of Deal Builder, all causing some uncertainty and
unease.
· These factors have been reflected in our current measure of employee
engagement, which saw a decline from 91% to 72%.
· We commenced "listening" sessions within the business aimed at increasing
engagement.
· We are reviewing and refreshing our policies and processes to comply with
the Employment Rights Act.
7. Brand and reputation Our brand is one of our biggest assets. Our research shows that we are the · We launched our new marketing campaign, "It's Time for Autotrader", which
largest and most trusted automotive classified brand in the UK. Failure to was designed to target the 25-34 year-old demographic. We estimate that this
maintain and protect our brand, and/or negative publicity affecting our campaign will reach 96% of this demographic in the UK.
reputation could diminish the confidence that retailers, consumers, and
advertisers have in our products and services. This could result in a · Our Customer Security team has continued to work proactively to block
reduction in audience and revenue. unscrupulous and potentially fraudulent activity on our website. The level of
fraud remains low and our Trustpilot rating remains high at 4.6 out of 5.
· We are founding members of the Vehicle Safe Trading Advisory Group
("VSTAG") and this group will celebrate its 20th year in the coming year. We
work with players in the industry to collectively fight against unscrupulous
behaviours. We also work closely with law enforcement to help them to
prevent and investigate potentially criminal behaviour.
· We continue to seek ways to use AI to prevent and detect potential frauds
and scams, and this will evolve in the coming years as models become more
sophisticated.
8. Failure to innovate The automotive industry is changing. Should we fail to innovate our business · Our rollout of Deal Builder in the Autumn was met with resistance from some
and product offerings, we could lose relevance with our key stakeholders, retailers. We are evolving our retailer engagement strategy to ensure that
including consumers and customers. It is crucial that we develop and implement our customers have a voice in how we shape our products, which includes
new products, services and technologies safely and responsibly, and adapt to Customer Advisory Groups with diverse representation from across our retailer
changing consumer behaviour towards car buying and ownership. Failure to customers.
provide both customers and consumers with the best possible products and
online journey, including an online buying experience, could lead to reduced · We launched Buying Signals which enables retailers to prioritise leads from
website traffic and loss of revenue. high-intent buyers.
· We continue to invest heavily in our technology platforms. In FY26 we
launched an AI platform which enables us to quickly productionise AI products.
9. Climate change The automotive industry is a high contributor to emissions, and there is · Despite discounts aimed at stimulating demand for EVs, price disparity
pressure from consumers and the Government for the industry to reduce its between ICE and EVs has remained a barrier to mass-adoption of EVs. Additional
environmental impact. Failure to deliver on our environmental commitments barriers include price inequality between public and private charging, and
could affect our reputation as a responsible business. anxiety around the availability and reliability of public EV charging.
The shift from internal combustion engines ('ICE') to electric vehicles · In the calendar year 2025, EVs made up c.23% of all new car registrations,
('EVs') could prompt changes to car buyer behaviour. Factors which might below the 28% target set by the ZEV mandate. The target for calendar year 2026
inhibit mass consumer adoption of EVs include: the high price of EVs compared increases to 33% and it is likely that manufacturers will again use discounts
to ICE equivalents; potential for improvements in public transport; changing to stimulate demand.
government policy and reduced incentives such as increasing taxes on EVs;
range anxiety; and anxiety over the residual value of EVs. · We are seeing a pipeline of EVs flowing through to used, and our data
indicates that consumer appetite for used EVs is strong.
Changing and more stringent regulatory requirements could increase our cost
base. Increased frequency and severity of extreme weather events could lead to · Historically, our carbon emissions have been relatively low. However,
heightened costs, including costs associated with heating/air conditioning, they have increased this year owing to two primary factors: the initial costs
insurance and cloud infrastructure. Extreme weather events could also lead to of our new office; and the practice of purchasing vehicles within our Leasing
short-term closure of retailer forecourts (for example, due to flooding). business. Vehicle purchases is the primary source of our carbon emissions and
this activity will continue in the near future, leading to higher carbon
emissions attributable to the Group versus prior years.
· We introduced the Responsible Change Forum. This brings senior
stakeholders together to shape and oversee our ESG strategy.
10. Reliance on third parties and partners To achieve our strategic objectives, we are reliant on partners to support · Retailers can use Autotrader's systems to access our services and data,
certain product initiatives, for example having lenders integrated with our whereas others use third-party technology systems that we have integrated
Deal Builder journey is a key dependency. We also rely on third parties to with. We continue to work closely with these technology partners to enable our
support our technology infrastructure, to supply vehicle data and financing, customers to use our platform capabilities.
and in the fulfilment of some of our revenue generating products.
Consequently, it is important that we manage relationships with, and · Our Vehicle Check product has been successfully rolled out and we are now
performance of, key suppliers and strategic partners. entirely self-sufficient by sourcing all data directly from source, rather
than via intermediary organisations.
· Despite the ongoing geo-political risks over the last year, our
supplier-base has remained resilient. We have not experienced any major
disruption or downtime arising from suppliers.
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