Auto Trader Group plc (LON:AUTO) hit the skids on Thursday as the online car marketplace warned that a number of deferments to its payments and charges during the coronavirus outbreak will result in a hit to its finances.
The FTSE 100 firm said as part of efforts to support its customers it will not be charging retailers for their advertising packages during April and will also allow customers to defer payment of their advertising costs for March for 30 days.
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“Our board has chosen this approach not in response to immediate pressures on our business, but rather to continue to support an industry that we have supported for the past 40 years, and one which has supported us. We have chosen to do this because we are able to: our low cost base, the strength of our balance sheet and our access to credit”, the company said.
However, the firm warned that as a result of these measures it will deliver an operating loss for April of between £6mln-£7mln, adding that given current market conditions it could not “sensibly provide guidance” for its 2021 financial year.
The company also said its financial year ending 31 March will be “broadly in line with market expectations” and that its balance sheet was strong.
"These are unprecedented times so I believe that it is vital that we pull together and support our people, our customers and our industry”, said Auto Trader chief executive Nathan Coe.
“We are committed to supporting our retailer customers throughout this uncertain time. It is equally important that we continue to prioritise the well-being and safety of our people, and we are taking all necessary action to ensure that they are receiving all the advice and support that they need", he added.
The shares fell 3.2% to 357.4p in early trading.