Auto Trader Group PLC (LSE:AUTO) shares were on the back foot, despite a positive early start, after the vehicle marketplace said it plans to return around £600 million to shareholders in the new financial year after annual profit and earnings rose, even as a tougher trading backdrop and retailer pushback over its Deal Builder roll-out slowed growth late in the period.
The company reported revenue of £624.3 million for the year to 31 March 2026, up 4% from £601.1 million, while operating profit rose 4% to £392.7 million. Basic earnings per share increased 8% to 34.17p.
Autotrader said it returned £463.2 million to shareholders during the year through dividends and accelerated share buybacks, including the purchase of 58.5 million shares, equal to 6.6% of issued share capital. It proposed a final dividend of 7.8p per share, lifting the full-year payout to 11.6p.
The company said its board believes the current share price does not reflect the group’s fundamentals or long-term prospects, prompting an updated capital allocation policy. For FY2027, Autotrader expects to buy back about £500 million of shares while continuing to pay roughly one-third of net income in dividends.
For the current financial year, the company guided for group operating profit of £395 million to £415 million and said it expects at least high single-digit basic EPS growth. Autotrader added that April revenue was flat year-on-year, but retailer forecourts, paid stock volumes and package penetration are now improving.
In London, Autotrader shares opened higher, reaching 489p briefly, before easing lower and as the morning progressed, were down 3.7% at 477p.