Auto Trader Leads FTSE 100 Lower As Revenues Growth Slumps

Forbes

29-05-2025

Photo byAuto Trader shares hit the skids on Thursday, as fewer dealer listings due to vehicle shortages meant sales growth slowed substantially last year.
At 788.2p per share, the FTSE 100 retailer was 14.2% lower on the day.
Revenues rose 5% to £601.1 million during the fiscal year to March 2025, down from 14% in financial 2024.
Sales at the core Auto Trader unit grew 7%, to £564.8 million. But at Autorama, its van leasing service, revenues reversed 12% to £36.3 million.
Group operating profit rose 8% year on year, to £376.8 million, driven by a 4% increase at Auto Trader, to £394 million.
Autorama's operating losses, meanwhile, narrowed to £4.3 million from £8.8 million in financial 2024.
The Footsie firm announced plans to hike the full-year dividend to 10.6p per share from 9.6p per share previously.
At Auto Trader, average revenue per retailer (ARPR) per month improved 5% to £2,854 during financial 2025. This was 'driven by a positive contribution from the price and product levers, with stock being negative,' the company said.
The average number of retailer forecourts using its platform edged 2% higher year on year, to 14,013.
A higher number of private listings meant live car stock improved 1% to 449,000 motors on average. New lease vehicle volumess, however, declined to 6,268 from 7,847 the previous year due to constraints in new vehicle supply.
The business said that 'we continue to see strong levels of demand for used cars, with a record number of cross-platform visits and minutes spent on Auto Trader.'
It added that 'this combination of high demand and restricted supply in key age cohorts has led to cars selling at a faster rate than any time in our recent history.'
Auto Trader commented that supply issues persisted throughout last year for vehicles aged between three and five years old.
Chief executive Nathan Coe commented that 'despite broader macroeconomic uncertainties, the UK car market is in good health and we continue to deliver against our strategy to improve car buying and retailing.'
He added that 'we remain confident in the outlook for the business given our strong market position, the value we deliver for customers, and our unique data and technology capabilities.'
For the current financial year, the FTSE 100 company said it expects Auto Trader sales to pick up speed, though projections were still below expectations.
Full-year revenue growth of between 5% and 7% is anticipated.
The retailer added that 'due to the comparative periods, growth will be stronger in the second half which we expect will benefit the start of financial 2027'
Analyst Charlie Muggins of Wealth Club said that 'Auto Trader maintains an incredibly strong market position and the used car market remains in good shape. At some point, demand for used cars will moderate and supply constraints will ease, which should feed through to stronger revenue growth for Auto Trader. '
He added that 'for now though, market conditions aren't overly favorable. This means investors will likely need to moderate their growth expectations for the coming year.'