Autotrader Group (AUTO) investor relations material

Executive summary

• H1 trading was in line with expectations; revenue excluding vehicle and accessory sales was £301.8m versus £301.2m, while operating profit declined 1% to £198.5m.

• Basic EPS rose 5% to 18.10p; operating margins held at 63% reported and 66% excluding vehicle and accessory sales.

• Strategy is shifting toward an AI-powered platform for buyers, retailers and manufacturers, with investment expected to be self-funded and long-term margins maintained.

• £330.2m was returned to shareholders; buyer engagement remained strong, with 12x more marketplace time spent than at the nearest competitor.

Financial highlights

• Group revenue was £313.4m, down 1%; revenue excluding vehicle and accessory sales was £301.8m, while vehicle and accessory sales fell 30% to £11.6m.

• Operating costs fell 2% to £117.2m; operating profit was £198.5m, down 1% YoY.

• Profit before tax fell 4% to £191.2m; profit for the period was £143.6m, compared with £150.9m in H1 FY2026.

• Cash generated from operations was £215.3m, broadly unchanged YoY; net cash from operating activities was £165.7m, and JV profit share rose 10% to £2.3m.

• Net finance costs rose to £7.3m from £0.8m; tax paid was £49.6m versus £49.7m in H1 FY2026.

Outlook and guidance

• FY2027 operating profit guidance remains £395m–£415m, with revenue growth expected to accelerate in H2.

• Full-year vehicle and accessory sales are expected to be ~£25m, down from prior guidance of £40m, with matching cost of goods sold and no expected profit impact.

• FY2027 buybacks are expected to total ~£500m; an earlier outlook anticipated at least high-single-digit basic EPS growth, supported by accelerated buybacks.

• FY2027 expectations included average retailer forecourts 1%–2% lower for the year and a small profit from Autorama; H2 forecourt numbers were ahead of expectations, while smaller incoming retailers dilute ARPR.

• Annual pricing and product events are expected to contribute 5%–7% in combination; no FY2028 guidance was given, and consensus revenue trajectories were described as underpinned.