FTSE 100 heavyweight surpasses crucial benchmark as earnings spike significantly
Auto Trader Reports Progress Amid Economic Uncertainty, Boosting Revenue and Profit
Auto Trader, a FTSE 100 leader based in Manchester, has announced a substantial increase in its profit during the 2024-2025 financial year, surpassing a significant milestone despite encountering high-interest rates and economic apprehension.
The company's financial report, recently filed with the London Stock Exchange, reveals a total revenue of £601.1 million for the 12-month period ending March 31, 2025. This figure represents a 5% rise compared to the previous year.
A notable uptick of 7% was observed in the core Auto Trader revenue, which reached £564.8 million. The growth was primarily supported by a 2% increase in the number of retailers utilizing their services, particularly smaller independent dealers.
However, the growth in the number of retailers resulted in a less pronounced 5% increase in the average revenue per retailer to £2,854 per month. This increase is attributable to the typical lower spend associated with smaller clients.
In addition to the increase in pre-tax profit by 9% to £375.7 million, Auto Trader also noted its continued dominance in the market, accounting for over 75% of all time spent on automotive platforms in the UK.
Cash generation remained robust, with cash from operations rising 5% to nearly £400 million. As a result, the firm was able to return £275.7 million to its shareholders through dividends and buybacks.
During the past 12 months, Auto Trader's strategic emphasis was on the rollout of 'Co-Driver', an AI-powered suite of features aimed at streamlining the ad creation process for dealers. The company also expanded its 'deal builder tool', allowing more of the purchase journey to be completed online. Approximately 49,000 deals were completed through this tool, marking a significant increase compared to the previous year.
However, the car giant's 'autorama' leasing division remained a challenge due to new car supply problems. revenue from this division decreased by 12%.
In response to the positive results, Auto Trader's chief executive, Nathan Coe, commented, "Despite the broader macroeconomic uncertainty, the UK car market remains healthy, and we continue to adhere to our strategy of improving car buying and retailing experiences."
Technology played a significant role in Auto Trader's growth, as the implementation of AI-powered tools like 'Co-Driver' and the expanded 'deal builder tool' contributed to a seamless online purchase journey, increasing efficiency and boosting profit. Moreover, the transportation industry significantly benefited from Auto Trader's services, as demonstrated by the 7% increase in the number of retailers utilizing their services, particularly within the smaller independent dealers sector.
