19th Mar 2020 09:29
(Alliance News) - Auto Trader Group PLC on Thursday warned it will be loss-making in April after taking measures to help customers during Covid-19.
The FTSE 100 firm, based in Manchester, said the UK car retailing market is facing "unprecedented" uncertainty.
Auto Trader has decided on two measures: it will not be charging retail customers for advertising packages during April, and it will be allowing customers to defer March advertising costs by 30 days.
This will "clearly" have a financial impact, Auto Trader said, though it stressed it has been able to enact such measures due to its financial strength.
Auto Trader said it cannot give any guidance for its financial year ending March 2021, though results for financial 2020 will meet expectations. The action taking for customers will, however, lead to a operating loss of GBP6 million to GBP7 million in April.
Auto Trader had drawn GBP289 million of a GBP400 million facility as of the end of February, and it has decided against buying back any shares until June.
Chief Executive Nathan Coe said: "These are unprecedented times so I believe that it is vital that we pull together and support our people, our customers and our industry. 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."
Auto Trader will be publishing financial results for its current year ending March on June 4. Shares were 1.9% lower on Thursday morning in London at 361.90 pence each.
By George Collard; [email protected]
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