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Highlights

  • Group revenue rose 5% to £601.1M, with operating profit up 8% to £376.8M.

  • Retailer revenue grew 7%, but growth in live car stock and ARPR slowed in the second half.

  • New AI-powered "Co-Driver" tool launched to enhance retailer and buyer experience.

Auto Trader Group PLC (LSE:AUTO) has announced its full-year financial results for the period ending 31 March 2025, revealing substantial annual growth tempered by a marked slowdown in the second half of the year.

The UK's leading digital automotive marketplace posted a 5% rise in group revenue to £601.1 million, with core Auto Trader operations contributing £564.8 million, a 7% year-on-year increase. Growth was driven by a 7% rise in retailer revenue, supported by a 2% increase in the number of retailer forecourts and a 5% uptick in average revenue per retailer (ARPR), which reached £2,854 per month.

While the ARPR rose 6.3% in the first half, momentum softened in the latter part of the year. Similarly, live car stock increased just 1% to 449,000 vehicles, down from a 2% gain in H1, signalling a moderation in inventory growth.

Operating profit climbed 8% to £376.8 million, but again reflected a slower pace compared to the 14% growth recorded in the first half. The company also reported a narrowed loss of £4.3 million at its vehicle leasing business Autorama, even as revenue from the division fell 12% to £36.3 million.

In a notable development, Auto Trader for the first time recognised the impact of the UK's Digital Services Tax, resulting in a £10.2 million charge to operating expenses for the year.

Despite the second-half slowdown, the company continued to invest in product innovation. One of the key launches of the year was Co-Driver, a suite of AI-powered features designed to streamline the vehicle advertising process for retailers and improve the user journey for car buyers. The tool highlights Auto Trader’s continued focus on leveraging data and technology to maintain its market leadership.

Commenting on the results, CEO Nathan Coe said, "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."

Looking ahead, Coe projected retailer revenue growth of 5% to 7% for the new financial year, buoyed by pricing strategies, product enhancements, and stabilising car stock levels. Growth is expected to accelerate in the second half, potentially setting up a strong start for FY27.