Auto Trader Group PLC (AUTO), the UK's largest automotive marketplace, has published its half-year results for the six months ended 30 September 2026, reporting basic earnings per share growth of 5% year-on-year to 18.10p despite a 1% decline in group revenue to £313.4m. The FTSE 100 company returned £330m to shareholders through dividends and share buybacks during the period and is proposing an interim dividend of 4.2 pence per share, an 11% increase on the prior year. The company reaffirmed full-year operating profit guidance of £395m–£415m, citing expectations of accelerating revenue growth in the second half.

Key Points

  • Auto Trader Group PLC (AUTO), listed on the London Stock Exchange and a member of the FTSE 100
  • Basic EPS rose 5% to 18.10p; group revenue fell 1% to £313.4m; operating profit margin held at 63%
  • £330m returned to shareholders; interim dividend of 4.2p per share proposed; net bank debt of £320.0m; leverage at 0.8x
  • Investors may watch for second-half revenue acceleration and the pace of Autotrader Intelligence adoption across its retailer base

Revenue Holds Steady Excluding Vehicle Sales as Retailer Forecourt Numbers Recover to 13,900

Group revenue excluding vehicle and accessory sales was broadly flat at £301.8m (H1 2026: £301.2m), as the company worked through retailer feedback following the Deal Builder product roll-out in November 2025. Vehicle and accessory sales fell 30% to £11.6m, pulling overall group revenue down 1% to £313.4m. Retailer forecourt numbers recovered during the period, rising from 13,600 at the end of March to 13,900 by the end of September. The announcement states that of retailers who churned between November 2025 and January 2026, 54% are no longer trading, 29% have rejoined, and 17% are yet to return.

Operating Profit Margin Maintained at 63% as EPS Growth Driven by 9% Reduction in Shares in Issue

Group operating profit decreased 1% to £198.5m, while the operating profit margin remained consistent at 63%, or 66% excluding vehicle and accessory sales. Operating costs fell 2% to £117.2m, supported by a 2% reduction in people costs and a 29% decline in cost of goods sold, partly offset by a 32% increase in marketing expenditure to £12.9m. Profit before tax decreased 4% to £191.2m; however, basic EPS rose 5% to 18.10p, primarily because there were 9% fewer shares in issue following buyback activity. Cash generated from operations was broadly flat at £215.3m.

Autotrader Intelligence Platform Deploys 57 AI Models Across Buying, Selling and Retailer Operations

The company is positioning its AI-powered platform, Autotrader Intelligence, as a core strategic differentiator, built on scalable cloud architecture and combining 57 specialised AI models with approximately 15 billion proprietary data points held against UK vehicles. The platform includes Deal Builder, through which active retailers have more than doubled during the period to approximately 9,300, and a retailer listing tool that the announcement states has reduced average vehicle listing time from 28 minutes to five minutes. The company said investment in Autotrader Intelligence is expected to be self-funded, ensuring consistency in long-term margins.

£600m Debt Facility Agreed and Buyback of 55.7m Shares Completed at Average 483.4p

During the half, Auto Trader amended and extended its debt facility, increasing capacity to £600m. At the period end, £335m had been drawn, resulting in net bank debt of £320.0m and leverage of 0.8x, compared with net cash of £5.2m and 0.0x leverage a year earlier. The company purchased 55.7m shares, representing 6.7% of issued share capital, at an average price of 483.4p as part of its capital return programme. The proposed interim dividend of 4.2p per share represents an 11% increase on the prior year figure of 3.8p. Full-year group operating profit guidance of £395m–£415m was maintained.