Autotrader shares slumped 9% on Thursday after the car-selling platform reported annual profits and revenues that missed forecasts. Operating profits rose 4% to £392.7 million for the year to March 31, with revenues also up 4%, but both figures fell short of analyst expectations.
The FTSE 100 firm also revealed a decline in dealership numbers, linked to concerns over the rollout of its AI-driven retailing tool Deal Builder. The number of dealer forecourts on its books fell nearly 1% to 13,942. Autotrader said it had listened to customer feedback and was focused on winning back retailers.
Despite the profit miss, Autotrader announced plans to boost shareholder returns by £600 million in 2026-27, including £500 million in share buybacks and dividend payouts. Total returns to investors over 2026 and 2027 would reach £1 billion.
Chief executive Nathan Coe said the results came “despite a challenging backdrop” and highlighted that time spent on Autotrader was six times more than all main competitors combined. The company forecasts operating profits of £395 million to £415 million for the new financial year.
Coe expressed confidence in the firm's AI strategy, citing products like Co-Driver and Buying Signals, and improved search functionality on its marketplace and within ChatGPT.
