Auto Trader, the leading automotive marketplace in the UK, reported a 5% increase in both total group revenue and average revenue per retailer for the fiscal year. Although operating profit rose 8% and earnings per share grew by 12%, the company anticipates only modest revenue growth of 5-7% in the next fiscal year. Charlie Huggins notes that a robust used car market has reduced the need for retailers to advertise on the platform, leading to a slowdown. Investors are advised to align their expectations with current market conditions, which are not particularly favorable.
Auto Trader's revenue growth slowed due to reduced retailer paid stock units from a buoyant used car market, with strong demand exceeding supply.
Despite a 5% revenue growth, Auto Trader's current market conditions suggest moderated expectations for revenue growth in FY26, anticipated between 5-7%.
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