Autotrader shares hit as figures miss expectations
Summary
Autotrader reported a 4% rise in operating profit to £392.7m and a 3% rise in pre-tax profit to £388.8m for the year to March 31, but both earnings and revenues fell short of forecasts and the shares dropped about 9%. The group said dealership numbers slipped nearly 1% to 13,942 amid retailer concerns over the speed and nature of the rollout of its AI-driven Deal Builder tool. Management announced plans to increase shareholder returns by roughly £600m in 2026-27, including about £500m of buybacks, taking investor returns to around £1bn across 2026–27. Autotrader reiterated guidance for further earnings growth (operating profit £395m–£415m) and emphasized continued investment in AI across retailer and buyer products like Co-Driver, Buying Signals and improved search functionality.