Auto Trader Group Plc – Annual Report and Financial Statements
Total Page：16
File Type：pdf, Size：1020Kb
Driving change Auto Trader Group plc Annual Report and Financial Statements 2019 Strategic report Financial statements 02 2019 in summary 79 Independent auditors’ report to the 04 Chairman’s statement members of Auto Trader Group plc only 05 Chief Executive Officer’s statement 83 Consolidated income statement 06 Our approach 84 Consolidated statement of 08 – Market overview comprehensive income 12 – Our business model 85 Consolidated balance sheet 14 – Growth horizons 86 Consolidated statement of 18 – Our strategy changes in equity 20 – Key performance indicators 87 Consolidated statement of cash flows 24 Operating and financial review 88 Notes to the consolidated financial 30 Principal risks and uncertainties statements 35 Corporate social responsibility 130 Company balance sheet Governance 131 Company statement of changes in equity 46 Governance overview 132 Notes to the Company financial 48 Board of Directors statements 50 Corporate governance statement 137 Shareholder information 58 Report of the Nomination Committee 60 Report of the Audit Committee 64 Directors’ remuneration report 75 Directors’ report Strategic report Governance Financial statements Financial Who we are What we do Auto Trader Group Plc is the There are over 10m UK's largest digital automotive transactions each year and marketplace. Our purpose we are driving change in how is to lead the future of the consumers are shopping for UK's digital automotive these cars online. We aim to marketplace. drive further efficiencies in the market, benefitting Follow us consumers, retailers and twitter.com/ATInsight manufacturers. How we are driving change Beneath our strategic pillars, we’re focused on three horizons of growth. We aim to significantly improve UK car buying focused around our core marketplace. We’ve identified adjacent market opportunities which leverage either our large consumer audience or Growth horizon 3 our relationships with retailers and manufacturers. We believe future Future opportunities exist in creating an online Read more transaction journey for car buyers. page 17 Growth horizon 2 Adjacent Read more page 16 Growth horizon 1 Core Read more page 15 Auto Trader Group plc Annual Report and Financial Statements 2019 | 01 2019 in summary Purpose To lead the future of the UK's digital automotive marketplace Strategy Our culture and values We continue to think about our Our culture is built around our digital, strategy in terms of three strategic data-driven approach, our values, pillars, which address UK car buying, our commitment to diversity, our the wider automotive ecosystem rapid response to change and our and our culture as a business. continued success and growth. Each of these is critical in helping to meet our purpose to Critical to our culture are our values, from being lead the future of the UK’s digital automotive marketplace community-minded to determined, they are at the heart and we have made progress against each pillar in 2019. of our company. They are fundamental to our recruitment process, induction, training, the way we behave and underpin Read more our company's approach to everything that we do. page 18 Strategic pillars Our values Be determined Be humble Improve We are passionate about our We are open, honest, customers, showing stamina approachable and we car buying and resilience, and have the treat each other fairly. We in the UK conviction to do the right recognise success in ourselves thing. We will roll up our and others but admit and sleeves to get the job done. learn from mistakes. Be reliable Be curious We are outcome-oriented We are always learning. We Evolve the and we do what we say we question why, we search for automotive will do. We perform under better ways, ask questions pressure and have a strong and actively listen. ecosystem in work ethic. the UK Be courageous Be community-minded We are bold in our We look after each other, thinking, overcoming fears, respect diversity and challenging convention advocate inclusion. We Become the and embracing change. are committed to making most admired a difference to the communities around us UK digital and think of others business before ourselves. 02 | Auto Trader Group plc Annual Report and Financial Statements 2019 Strategic report Governance Financial statements Financial 2019 selected highlights1 Financial Revenue Operating profit2 Basic EPS2 £m £m pence per share £355.1m £243.7m 21.00p +8% +10% +18% 2019 £355.1m 2019 69% Margin £243.7m 2019 21.00p 2018 £330.1m 2018 67% Margin £221.3m 2018 17.74p 2017 £311.4m 2017 65% Margin £203.9 2017 15.62p Operational Cross platform visits Advert views Live car stock Monthly average visits spent across Average number per month Average number per month all platforms (millions) (millions) 49.1m 239m 461,000 +1% -3% +2% 2019 49.1m 2019 239m 2019 461,000 2018 48.7m 2018 246m 2018 453,000 2017 49.4m 2017 247m 2017 450,000 1 The full list of KPIs is available on pages 20 to 23. 2 2018 and 2017 have been restated following the adoption of IFRS 16. Key achievements — We successfully monetised our — We completed a joint venture — With community-minded a core dealer finance proposition, with Cox Automotive UK aimed at company value, we’re pleased allowing retailers to advertise developing a more efficient way to report that our employees their finance pricing to consumers for retailers to source vehicles. completed 467 volunteering days earlier in their buying journey. — We met the Hampton Alexander within the reported financial year. — We launched a new car Review recommendation of having — We were the first company to proposition which saw us close over a third of our leadership team be accredited by the National the year with over 30,000 physical and their direct reports as women. Autistic Society as an autism new cars on autotrader.co.uk. friendly employer. — We successfully maintained our leadership position in both visits and minutes, as measured by comScore, despite increased competition in the market. Auto Trader Group plc Annual Report and Financial Statements 2019 | 03 Chairman’s statement We returned £151m to shareholders through dividends and share buybacks, and reduced Gender diversity debt by £30m.” As at 31 March 2019 As at 6 June 2019 Ed Williams 4 4 Chairman 2 Gender diversity3 Gender diversity As at 31 March 2019 As at 6 June 2019 % of women on Board 33% % of women on Board 43% Overview Men Women 4 4 The last year saw Auto Trader make major 2 3 steps towards many of our strategic goals which lie beyond simply being the best place 2 % of women on Board 33% % of women on Board 43% for car buyers and sellers to advertise their Men Women cars in the UK and Ireland. The next paragraph highlights three of these. First, we started to charge our customers for My personal thanks goes out to those people We will talk about Trevor’s contributions and our Dealer Finance service. This allows car in the organisation that identified and took achievements in next year’s Annual Report, finance and monthly payments against on the challenge of changing Auto Trader to when we can reflect on the complete period vehicles advertised on Auto Trader. By the end make us worthy of this award. It emphasises of his tenure. of the year 67% of all cars displayed car finance that at Auto Trader efforts are not, and We were delighted to be able to announce quotes whether via the retailer or using our should not be, confined only to areas that Nathan Coe, previously COO and CFO, own service, via a third party. Second, we receiving corporate governance attention. introduced the ability for manufacturers and will replace Trevor on his retirement and that retailers to advertise their new car stock, Dividend, financing and capital strategy Jamie Warner, previously Deputy CFO, will including vehicles manufactured but not yet We are recommending to shareholders a final become CFO. We were also delighted to allocated to a specific retailer. Third, we dividend of 4.6 pence per share, bringing the announce the promotion of Catherine Faiers announced and received Competition and total dividend for the year to 6.7 pence per to the role of COO and her appointment to Markets Authority clearance for a joint venture share. This 14% increase on the previous year the Board from May 2019. is underpinned by our EPS growth. with Cox Automotive, the UK’s second largest There were no changes to the Board, nor car auction business, to provide retailers with Our capital strategy policy remains material matters relating to corporate a fully integrated online solution to sourcing unchanged. We aim to distribute around a governance, during the year under review in used cars, including virtual auctions. third of net income as dividends, and use the this Annual Report. We have reviewed the Healthy progress was made in our core majority of surplus cash, after dividends, to impact of the 2018 Corporate Governance business of advertising used cars for sale, buy back shares while also reducing debt. Code. We were already in line with the new despite a tough new car market and stable In 2019, we returned £151m to shareholders requirements in most respects. Where but slightly declining used car market. Indeed, through dividends and share buybacks, and changes are needed, these are already the tougher trading conditions experienced reduced debt by £30m. As we reported last underway and we are committed to taking the by many of our customers have led to a year, on 6 June 2018 we entered into a new necessary steps to comply with the new Code re-evaluation of their marketing approach and five-year £400m revolving credit facility, the within 12 months.