2024 annual report
Driving Change Together.
Responsibly.
Auto Trader is committed to creating a diverse and inclusive culture, it aims to build stronger partnerships with its customers and use its voice and influence to drive more environmentally friendly vehicle choices.
With the largest number of car buyers
and the largest choice of trusted stock,
Auto Trader’s platform sits at the
heart of the UK car buying process.
12 %
ARPR growth in the year, with positive contribution from all 3 levers
c. 65,000
software releases over the year
(2023: 51,000)
c. 1,100
Deal Builder customers live in March 2024
(March 2023: c.50)
2040
is the year we are committed to achieving net zero
35 %
of retailer stock above our standard package level
(2023: 32%)
> 75 %
of retailers benefitting from our Auto Trader Connect modules: Retail Essentials and Valuations
c. 16,000
deals in the period
(2023: c.200)
c. 80 %
of Auto Trader employees have completed the Carbon Literacy training, putting us at Platinum award level
Matt Davies
Chair
Nathan Coe
CEO
It’s a privilege to succeed Ed Williams as Chair of Auto Trader and I would like to thank him for the support he has provided to me in taking on this role and acknowledge the immense contribution he has made over his tenure.
This year marks another strong financial and operational performance for Auto Trader. Whilst parts of the automotive market have seen some softening, the market has generally been robust and more customers than ever. have opted to partner with us.
We continue to improve our product offering, enabling customers to compete on our marketplace through greater access to our data-driven insight and enabling more of the buying journey to be completed online, all yielding greater efficiencies for customers.
This has been another year of strong financial, operational and strategic progress for Auto Trader.
Since Auto Trader’s IPO the business has delivered consistent execution and performance. During the first few years of being a public company, revenue grew steadily whilst much of the focus was on transitioning to a pure digital business and changing the cost base from a model that had remnants of our magazine heritage.
This transition yielded cost efficiencies and stronger profit growth, which was largely a one-time opportunity. Since then, our performance has been characterised by higher revenue growth, with a focus on our core marketplace and product growth, coupled with investments in our platform and adjacent opportunities.
Our
purpose-driven
strategy
Our
purpose-driven
strategy
Our purpose continues to be Driving Change Together. Responsibly. We deliver on this through our three strategic priorities detailed below, alongside our commitment to always working responsibly.
Marketplace
Be the best place to buy a car
The largest and most engaged consumer audience underpins our network effect marketplace model.
Platform
Be the industry’s data & technology platform
Through a combination of our unique data set, scaleable technology and wide-ranging partnerships, we are uniquely placed to be the data and technology platform for UK automotive.
Digital retailing
Be the enabler for all retailers to sell online
We are building products and services to enable consumers to do more
of the vehicle buying journey online.
01
Marketplace
02
Platform
03
Digital retailing
Ensuring we make
a positive impact
Working responsibly is central to our purpose and strategy.
Our purpose is driven by our commitment to doing the
right thing, measuring and reporting transparently and
always acting with integrity.
Our environment
Minimise our impact on the environment, thereby protecting our business from the impact of climate change.
Drive change across our own operations and supply chain, and also use our capabilities and voice to influence the automotive and technology industries and Government to support urgent action to tackle the climate crisis.
Report comprehensively in line with TCFD recommendations.
Our people and communities
Build diverse teams and evolve our inclusive culture.
Maintain high levels of employee engagement, supporting positive health and wellbeing.
Partner with charities, community groups and industry bodies to make a difference to the communities where we work and live.
Our governance and compliance
Uphold the values of good corporate governance and risk management and consider the needs of all our stakeholders in our strategic decision-making.
Comply with our legal and regulatory obligations and behave ethically and with integrity at all times.
Maintain a trusted marketplace for our customers and consumers to find, buy and sell vehicles.
RELEVANT STRATEGIC PILLARS
RELEVANT STAKEHOLDERS
– Our people
– Investors
RELEVANT STRATEGIC PILLARS
RELEVANT STAKEHOLDERS
– Consumers
– Customers
– The community & the environment
Making the
right decisions
By understanding our stakeholders' diverse needs, we factor into boardroom discussions the potential impact our decisions could have on them.
CONTEXT
Our people are one of our most valuable assets and we continuously work towards enhancing the overall employee experience.
BOARD CONSIDERATIONS
Given the significant financial commitment, the Board devoted considerable time to reviewing the financial impact on the business. The awards are to be granted annually to employees, based on a value of 10% of base salary, vesting over a three-year period, and therefore the cost would increase in each subsequent year before reaching a stable ongoing cost.
OUTCOME
Overall, the Board agreed that the all-employee share award was in the best long-term interests of the business, and would provide a fair, transparent and inclusive way to enable our people to benefit from the business success they have helped to create, and a cost-effective way of providing long-term reward.
CONTEXT
Over the past 24 months the new car market has seen increased structural changes. These include the growth in electric vehicles; new market entrants; a move to more direct and digital sales channels; and the implementation of agency agreements by a number of manufacturers.
BOARD CONSIDERATIONS
In light of these ongoing structural changes the Board has had to consider a number of new product launches and their impact on different stakeholder groups. When buying an electric car for the first time, the considerations are different to when buying a combustion engine. It became clear that the content and search experience available on Auto Trader to purchase an electric car needed further investment to support consumers making more environmentally friendly vehicle choices.
OUTCOME
Whilst further work is still required, we have added new EV content, tools and evolved search. We have also actively started to incorporate EVs into our marketing campaigns, launched new media partnerships to promote EVs, hosted live events, and continued our successful monthly EV giveaway.
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