Autotrader Group Plc (ATDRF) Q4 2026 Earnings Call

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WEBVTT 00:00:00.858 -- 00:00:02.381 We 00:00:02.381 -- 00:00:04.381 anticipated 00:00:09.954 -- 00:00:11.954 trading 00:00:16.204 -- 00:00:20.893 this year to be tougher as a result of profitability challenges for retailers, a shortage 00:00:20.893 -- 00:00:24.905 of stock in some age cohorts and fast speed of sales. 00:00:24.905 -- 00:00:29.169 Retailer profitability was more challenging than we expected due to a combination of 00:00:29.169 -- 00:00:34.214 new car profitability in part due to the ZEV mandate and cost increases following 00:00:34.214 -- 00:00:36.897 the government budget last year. 00:00:36.897 -- 00:00:41.462 This led to intense scrutiny on every cost in their business with many stories of profit 00:00:41.462 -- 00:00:46.107 declines, redundancies and store portfolio restructures. 00:00:46.107 -- 00:00:50.912 The pressure on retailer profitability is most acute in November and December, which 00:00:50.912 -- 00:00:55.111 combined with feedback on our accelerated rollout of DealBuilder. 00:00:55.111 -- 00:00:59.817 This was amplified across social media, including some factual inaccuracies which were 00:00:59.817 -- 00:01:02.841 since clarified for customers. 00:01:02.841 -- 00:01:08.207 Following this period, we have seen higher cancellation levels than in previous years, 00:01:08.207 -- 00:01:12.172 which has impacted both FY26 and the run rate into FY27. 00:01:12.172 -- 00:01:14.172 However, 00:01:14.335 -- 00:01:18.700 despite these challenges, we have continued to grow revenue, profit and earnings per 00:01:18.700 -- 00:01:24.163 share. Perhaps more importantly, retail numbers, stock and upsells have all been growing 00:01:24.163 -- 00:01:29.009 since the end of the financial year, so we are past the low points. 00:01:29.009 -- 00:01:33.674 Furt...