Autotrader Group Plc

Good morning everyone and welcome to Autotrader's full year results for the year ended 31st of March 2022. It's great once again to be presenting to you in person as we move beyond COVID-19, which I'm pleased to say has not impacted our financial performance as it did last year. There are still challenges in the car market with significant supply constraints initially driven by semiconductor shortages compounded by supply chain disruptions from the war in Ukraine, lockdowns in China and commodity shortages. I would like to thank our people, our customers and wider stakeholders for their continued trust in our business. We've worked hard to do the right thing, such that working with or for AutoTrader feels like a genuine partnership, which is reflected in our culture, our relationship with customers and the strength of these financial results. Starting with our strategic overview, this year we've achieved our highest ever revenue and profits, signalling a return to more normal trading following periods of discounts to support customers when their ability to trade was restricted. Consumer engagement and customer numbers have also hit new highs during the year, strengthening our position as the UK's largest automotive marketplace for new and used cars. Despite challenges around supply, paid stock grew year on year for the first time in four years, which is both significant and a huge credit to our teams that work with our customers. In April 2021, we successfully delivered our annual pricing event, including a new product, Retailer Stores, offering retailers their own dedicated customisable destination on AutoTrader, which have generated over 58 million visits in the year. Product uptake has been strong through the year, supported by significant changes to how we work with our retailers, partnering with them to focus on achieving their stated business goals. In May 2021, we evolved our advertising package staircase, adding higher level packages and a consistent cross-platform search experience. We also launched our market extension product, allowing retailers to reach car buyers outside of their local area. These two products were key drivers behind the record levels of spending by our customers. We launched AutoTrader Connect into our retailer packages as part of our April 2022 pricing and product event, which has gone well. AutoTrader Connect gives customers access to our most fundamental and powerful data, which improves advert quality, pricing decisions, and introduces real-time updates between our systems and those of our customers. which is a key enabler for digital retailing, as without accurate or real-time view of stock, vehicles cannot be transacted online. With car buyers looking to complete more of the car buying journey online, making this a reality remains our focus. We've made good progress in the year, developing the component parts, including guaranteed part exchange, reservations, finance, applications, all of which have been trialed independently. Our focus now is to bring these together to create an integrated platform for retailers and an end-to-end deal-builder journey for consumers, connecting the online and offline buying journey so that consumers can complete different parts of the process in any channel seamlessly with the retailer. We've also made excellent progress on the key enablers for digital retailing. Market extension, AutoTrader Connect, our pricing and data products, and our logistic marketplace ATmoves are all launched, commercialized, and ready to be incorporated into a broader digital retailing offering alongside DealBuilder when it's launched. We're pursuing this opportunity with our usual disciplined organic approach and see it very much as an extension of our marketplace. strengthening our call while providing a multi-year growth opportunity. We are not seeking to become a retailer, but instead a provider of a highly scalable technology platform, enabling car buyers and retailers to complete the transaction between themselves online or on the forecourt. This approach has meant that there has been no erosion in our operating profit margin as we invest in future growth. In March 2022, we announced that we have agreed to acquire Autorama UK Limited, subject to regulatory approvals. The acquisition is core to our strategy as it enables digital retailing on new cars, as they have the capability to transact vehicles from order through to delivery by a retailer, providing manufacturers and leasing companies a direct channel to consumers. Autorama has existing partnerships with OEMs, funders and retailers, which we have an opportunity to strengthen and expand with Autotrader's brand and scale. The acquisition moves us into a transactional model on new cars quicker than we would achieve organically. The business has and is expected to experience subdued levels of sales while new car supply remains tight. However, as and when new car production returns, it will become increasingly attractive to manufacturers and leasing companies, while also benefiting from structural tailwinds, including direct-to-consumer sales, the move to electric vehicles, digital retailing, and the continued growth in personal leasing. We have not yet received all regulatory approvals and will provide more detail on completion. We plan to cover this and our digital retailing ambitions more broadly at an investor day, which we're proposing to hold on the 6th of September. Now turning to the financial results. As you may remember, during much of financial year 2021, we chose to offer our retailer customers pre-advertising when they were required to close their physical forecourts. This included April, May and December 2020 and February 2021, as well as a discounted rate in June 2020. For this reason, we see financial year 2020 as a more meaningful comparison through which to view our performance. Using that comparator, revenue increased by 17% to 432.7 million pounds with trade revenue up 20% to 388.3 million pounds. Operating profit also increased by 17% to 303.6 million pounds with operating profit margin returning to 70% consistent with 2020 levels. Compared to the financial year 2020, basic EPS was up 15% to 25.61 pence per share and cash generated from operations was up 24% to 328.1 million pounds. Having reinstated our capital policy, we returned 237.1 million pounds of cash to shareholders through a combination of dividends and share buybacks. 73.6 million pounds was paid in dividends and 163.5 million pounds before transaction costs was used to buy back shares during the year. Today we are also declaring a final dividend of 5.5 pence per share resulting in total dividends for the year of 8.2 pence per share. Now onto our operational results where prior year remains a useful comparator. The average number of cross-platform visits increased by 9% to 63.8 million per month. Engagement measured as the volume of cross-platform minutes was up 5% to $588 million a month. We remain the UK's largest and most engaged automotive marketplace for new and used cars, with over 75% of all time spent across our main competitor set spent on AutoTrader. We're now eight times larger than our nearest competitor, the combination of Gumtree, Motors and eBay, which has increased on last year. The average number of retailer forecourts advertising with us grew 5% to 13,964, the highest level we have seen for some time. It was due to low levels of cancellation and consistent levels of new business, which we believe is due to the combination of favorable market conditions, the partnership we have built with customers through the pandemic, and the demonstrable value delivered by our platform. Average revenue per retailer per calendar month, or ARPA, was up £886 to £2,210. £639 of this increase was a result of COVID-19 discounts in the prior period. When normalised, ARPA grew by £247 per month versus prior year with good contribution across product, stock and price. When compared to 2020, ARPA was up 13%. Average physical car stock on site decreased by 11% to $430,000 for the year. This was partially driven by a decline of 18,000 new cars on AutoTrader due to the very well-documented new car supply shortages. It was also due to an offer allowing customers to double their stock for free from late March to mid-July 2020, which was not repeated this year. And finally, the average number of full-time equivalent employees increased to 960 as we continue to invest to support growth across the business. Finally, our cultural KPIs, which are as important to us and the rest of our business as are our financial and operational KPIs, as they underpin our culture and purpose to drive change together responsibly. Achieving systemic progress on these KPIs will take considerable time and effort, but we're fully committed to doing the right thing in the right way, which we expect to show up in these measures over time, but there will be volatility along the way due to the nature of those measures. We carry out check-in surveys with our people at regular intervals throughout the year, the most recent being in April 2022. This includes a number of engagement questions, one of which is how proud employees are to work at AutoTrader, which has remained high at 95%. We believe creating inclusive culture and building greater levels of diversity within our organisation improves both individual and team performance. During the year, we now have a slightly higher percentage of women than men on our board, following the appointment of Jasvinder or Jasgakal in January 2022. At year end, women represented 40% of our organisation and women in leadership saw a meaningful improvement to 38%. Ethnically diverse employees currently represent 14% of the organisation with 12% of employees not disclosing their ethnicity. The percentage of ethnically diverse employees in leadership roles remained at 6% which highlights the work we still have to do in that area. Finally, we will continue to report our scope one, two and three emissions at year ends. We've committed to achieving net zero by 2040 and to reduce our emissions by 50% by the end of 2030. Our emissions during the year increased against the base year of 2020 due to an increase in our cost base and higher capital expenditure. We're now working to better understand our suppliers' plans, given that the vast majority of our carbon emissions within our supply chain and not with us directly. Finally, we were carbon neutral for the year, having offset 11,700 tonnes of carbon dioxide equivalent using an accredited scheme. And for the first time, the reduction in emissions will form part of our executive remuneration policy. I'll now hand over to Jamie, who will take us through the financials in more detail.

Thank you, Nathan, and good morning, everyone. Starting with revenue, total revenue for the year increased 65% to $432.7 million. As Nathan mentioned, this was up 17% versus 2020. Trade revenue increased by 72%, with the largest components of this being retailer revenue, which increased by 75%. The year-on-year increase was largely the result of the support we provided to our retailer customers in the previous financial year. Excluding these discounts, we saw good growth in average revenue per retailer, as customers opted to spend more with us across the year. The average number of retailers advertising with us also increased, averaging 13,964, which was up 5% compared with the prior year. This increase in the number of forecourts was due mainly to lower cancellations in the period with levels of acquisition remaining broadly flat. Also within trade, we've seen an increase in home trader pay-as-you-go listings, as well as growth in other trade revenue. Consumer services revenue increased by 25%. Within this, private revenue, which is largely generated from individual sellers who pay to advertise their vehicles on our marketplace, increased by 16%. There was a contribution of $0.9 million within this line from our instant offer product, which allows consumers to sell their car quickly from home for a guaranteed price. Motoring services was up 32% year on year as a result of strong growth in both our insurance and finance offerings. And finally, revenue from manufacturing agency customers was flat at $11.1 million The pandemic has had a significant impact on this revenue line in both financial year 2021 and 2022, as manufacturers have lowered their marketing spend due to the significant reduction in new car supply and uncertainty as to when this will return. Now onto ARPA, live car stock and retailers. ARPA increased by 67% year on year, with the average revenue per retailer generated across the period at £2,210 per month. The chart on the left shows the components that contribute to the movement in ARPA compared to the prior year. As you can see, much of the increase came from COVID-related discounts, which were offered to customers in the prior year, which by their absence in 2022 contributed £639 of growth Ignoring these COVID-19 discounts, underlying ARPA increased year-on-year by £247 per month, which was spread across our price, stock and product levers. We delivered our annual pricing event on the 1st of April 2021, and this contributed the majority of the £74 price lever, which equated to an effective increase of just under 4%. Product contributed £121 of growth year-on-year, with a breakdown as follows. About two-thirds of this product growth was a result of retailers purchasing more prominence products on AutoTrader. This was made up of increasing penetration of our high-yielding enhanced super and ultra packages, with 31% of retailer stock on one of these packages above our standard level in March 2022, versus 26% the year before. In addition to packages, retailers saw prominence through greater use of our pay-per-click product, and our market extension product, which was launched in May 2021, had over 6% of retailer stock on it by the end of the year. Our retailer stores product, which is included as part of our annual pricing event in April 2021, also made some contribution to the product lever. And finally, there were a collection of other smaller products, such as new car data and finance, which also made a small contribution. Looking now at stock, The chart on the right shows the profile of live physical car stock, which declined 11% in the year. As a reminder, live physical car stock includes all cars advertised on AutoTrader. This means that in addition to paid-for retailer used stock, it also includes new cars, private and home trader adverts, and the impact of stock offers. As usual, we stripped out the impact of new cars and provided underlying used car livestock, the darker of the two lines. It is important to note that the stock lever is not driven by livestock, but by the number of paid for retailer used stock units. We provided a slide in the appendix which shows a chart for both live and paid stock. As you can see, livestock has consistently been lower in financial year 2022 than the level seen in 2021. In H1, the difference was mainly driven by stock offer in the previous financial year, which was not repeated in 2022. In H2, we've seen the impact of supply shortages, which have gradually fed into used cars. Despite seeing less volatility in paid stock, partly due to our subscription charging model, 2021 was more variable than 2022. Early in the prior year, we saw some impact due to the first COVID lockdown, but recovered well through the year, supported by the free periods of advertising. In 2022, we saw declining levels of paid stock through the first half, but did see some recovery in the last five months, particularly from our smaller customers. Last year, the group made the decision to reduce costs mainly through discretionary marketing spend. With a return to more normal levels of spend in 2022, total costs increased by 27% to $132 million. This was a 17% increase versus 2020, with most of this being due to an increase in people costs, with 107 more full-time equivalent employees across the two years being the main driver. Marketing spend for the period increased by 109% to $20.5 million, which was equal to 4.7% of revenue consistent with 2020 levels. People costs increased by 16% to $69.8 million, The increase in people costs was primarily driven by an increase in the average number of full-time equivalent employees. This increased by 6% to 960, as we invested in more people to support new growth areas. There was also an underlying increase in the average cost per employee, partially as a result of the executive directors and the board foregoing 50% or more of their salary and fees in the first quarter of the prior year. but was also impacted by our annual pay review, which resumed in July 2021, having not occurred in the previous financial year. Other costs, which include data services, property related costs and other overheads, increased by 24%. The increase was primarily due to higher overhead costs, which included the return of travel, office and people related costs, as well as higher IT spend through increased software and data services. Depreciation and amortisation increased to £7.2 million, mainly driven by office improvements and an additional lease for increased office space. Capital expenditure in the period was £2.8 million, largely due to investment in our Manchester office, with refurbishment to support our new connected working approach. As a reminder, low levels of capex and depreciation are not a reflection of low levels of investment in our business. In addition to our investment in cloud-based services, we have over 350 people in product and technology who are continuously improving our platforms and developing new products for consumers and retailers, the costs for which are taken in full through our income statement in people costs. With revenue up 65%, costs increasing 27%, and a £2.9 million contribution from our share of dealer auctions profit, operating profit was $303.6 million. This is an increase of 88% on the prior year, and our operating profit margin returned to 70%. Cash generated from operations increased by 115% to $328.1 million. The year-on-year increase in cash generated from operations was bigger than operating profit, mainly due to a positive movement in working capital, Part of this movement was due to the free periods in December 2020 and February 2021 impacting our VAT liability at our 2021 year end. The statutory income statement outlines areas beyond our revenue and operating costs. Net finance costs reduced by 32% to $2.6 million as the lower level of debt drawn resulted in lower interest. Our profit before tax was 301 million, and our effective tax rate was 19%, which remains in line with the standard UK rate. Basic EPS increased by 93% as a result of the increase in profit after tax. As Nathan said earlier, the directors are recommending a final dividend of 5.5 pence per share, resulting in the total dividends for the year being 8.2 pence per share. Moving now to our net cash position and capital structure. Our net cash position increased to $51.3 million at the end of the period as a result of slightly decreased activity in share buybacks due to the acquisition of Autorama. Cash generated from operations of $328.1 million was used to pay $2.8 million of CapEx and lease payments of $3.2 million. In cash terms, we paid 1.5 million of interest and 56.2 million of corporation tax. Dividends of 7.8 million were received from our joint venture dealer auction. Of the remaining free cash flow, 73.6 million was paid in dividends, being last year's final dividend and this year's interim. And 164.3 million, inclusive of fees, was used to buy back shares, In total, we've returned 237.1 million to shareholders in the year. With effects from 24th of September 2021, the company reduced the total commitments of its syndicated revolving credit facility by 150 million from 400 million to 250 million. The group continues to be highly cash generative and remains in a net cash position, such that the size of the original 400 million pound facility was no longer required. The facility will terminate in two tranches. 52.2 million will mature in June 2023, and 197.8 million will mature in June 2025. In the coming year, it is expected that the group will draw on its revolving credit facility to fund part of the initial consideration relating to the Autorama acquisition, which will move us into a small net debt position. The group's long-term capital allocation policy remains broadly unchanged. continuing to invest in the business, enabling it to grow, whilst returning around one-third of net income to shareholders in the form of dividends. Any surplus cash following these activities will be used to continue our share buyback program and steadily reduce great indebtedness. It is the Board's long-term intention that over time the Group will return to a net cash position. That concludes the financials. I'll now pass over to Catherine, who will take you through our market and product updates.

Thank you, Jamie, and good morning everyone. Moving on to slide 14. As the UK emerged from the most recent national lockdown in June 2021, demand for both new and used cars has been strong for much of the financial year. This demand has been fuelled by catch-up in transactions that didn't happen in 2020 due to COVID-related lockdowns, increased consumer interest in car ownership, and good levels of consumer confidence overall. New car registrations in the year were at around 1.6 million. Although there was year-on-year growth of 4% versus 2021, registrations were still 22% below 2020 levels as supply shortages have impacted new car volumes we expect a similar number of new car transactions in this financial year. These constraints have impacted used cars, in particular for our larger customers, as lower new car sales have meant fewer part exchanges and a lower volume of cars sent to auctions from wholesalers. The first six months of used car transactions were strong year on year, with 31% growth as Q1 lapped the first pandemic lockdown. In the second half of the year, growth was only 1%, which was impacted by supply shortages. The combination of these meant that there was a 15% increase year on year in 2022 overall. It has been widely reported that inflation is resulting in a sharp rise in the cost of living for UK consumers. This rise in the cost of living has the potential to impact the short-term demand for vehicles. We have included transactions data from financial year 2006 to highlight the relatively low levels of cyclicality, particularly in used car demand through various periods of the economic cycle. For many consumers, purchasing a car is considered a priority and not discretionary spend. They may trade down on the price of the vehicle or reduce usage, but will commit to the transaction itself. Auto traders' financial history is harder to analyse as the last UK recession coincided with our shift from print to digital. That said, it is our belief that between our market position, the partnership we have with our customers, our business model, and the quality and volume of consumers engaging on our platforms all means that we are well-placed to weather challenging times. We continue to publish a monthly price index of trade cars advertised on AutoTrader, the results of which are shown in this chart. Our live real-time data on market pricing has recently been adopted by the ONS as the source of data to power the UK Consumer Prices Index. This reflects the scale and accuracy of our data and is also another important step in our strategy for our data to become the currency that powers the industry. The blue line on the chart shows the average price of a vehicle advertised, which you can see has increased significantly over the financial year. By grouping cars by type, age, and fuel type, we have isolated the impact of underlying like-for-like price increases, shown as the dark blue bars. As you can see on the chart, for the last 12 months, like-for-like prices have increased significantly, with high levels of demand combined with constrained supply generating upward pressure on prices. This has resulted in a like-for-like price increase of 22% versus the prior year, and over 30% growth in March compared to the same period last year. We do expect pricing growth to slow in the coming months as we increasingly lap very strong prior year comparator periods and as consumer demand continues to soften from previous high levels. This strong pricing trend in financial year 2022 flowed through to very good trading conditions for many of our customers. This resulted in them generating significantly more profit per vehicle, while also selling vehicles faster, despite overall volumes remaining down for some retailers. Over the year, our audience position has strengthened, as overall consumer demand was strong, and we continued to exhibit clear market leadership. Starting in the top left, cross-platform visits grew by 9% year on year, to 63.8 million visits per month. Engagement, which we measure as the total number of minutes spent on our platform, increased by 5% to 588 million minutes per month. We have maintained our position as the UK's largest and most engaged automotive marketplace for new and used cars, with our share of total minutes amongst our main competitor set, as measured by Comscore, remaining strong at over 75%. As our spend on marketing returned to more normal levels, the percentage of our traffic that comes from paid channels increased slightly. But we're still only 5% in the year. The chart on the right shows the total minutes spent across an expanded set of competitors, retailers, and manufacturers. On average, over the year, Comscore estimated that consumers spent over eight times more minutes on Autotrader than our nearest competitor, the combination of Gumtree, Motors, and eBay. and over 12 times that of Cargurus and Pistonheads combined. Our relative position has strengthened against both players over the last 12 months. It is likely with the announcement that Gumtree and Motors have been sold that in the next reporting period, we will split out our largest competitor. In March 2022, we were 13 times larger than the combination of Motors and Gumtree and 16 times larger than eBay. Now onto our product update. We continue to evolve and improve our marketplace to create the best search experience for buyers. We have grown the volume of electric content that we surface and share in line with our commitment to help consumers make more environmentally friendly vehicle choices. In the year, we also created an electric car hub, which provides advice on ownership, cost comparison, and charging infrastructure. We have also run a monthly electric car giveaway, which has had 2.1 million entries across the year and driven awareness of EVs for sale on UltraTrader. We evolved our advertising package structure and changed the sort order for listings at the beginning of this financial year. Where our packages previously promoted adverts based on the device a consumer was searching on, we have created a consistent cross-platform experience with adverts appearing in search based on a relevancy algorithm, taking package level into account. As part of this change, we discontinued our basic package, introduced a higher level, and rebranded our top three levels, Enhance, Super, and Ultra. As Jamie mentioned earlier, we saw good uptake for our higher level packages, with 31% of retailers stock on a package higher than standard at the end of the year versus 26% the year before. We have seen customers continue to invest further in our suite of prominent products to drive competitive advantage and to maximize the opportunity while the market has been strong. In April 2021, we successfully executed our annual pricing event, including the launch of Retailer Stores, which offers retailers their own dedicated customizable location on AutoTrader. This allows retailers to bring their brand to life, building consumer confidence and differentiation to buyers. Over the past year, we have seen over 58 million visits to these pages. The number of customers paying for our new car product has been robust despite the challenges for retailers in sourcing stock. We ended the year with over 1,800 retailers paying to advertise new cars on our site. For much of the past two years, we have developed both the key enablers and tested the individual components shown here, which make up the key steps in the online car buying journey. We believe that the physical showroom will continue to play an important role in the car buying process for many years to come, but there are also several components which can be bought online. This will drive sales, margin growth, and efficiencies for our retailer customers, provide a better consumer experience, and create significant long-term growth opportunities for our business. We believe executing on this journey will move Autotrader's addressable market beyond marketing and advertising into more directly driving profit per car and also other parts of the cost base that currently support the sale, thereby enabling both our retailers and us to capture a greater percentage of gross profit. talking firstly to some of the key enablers of digital retailing for our retailer partners on AutoTrader. With the launch of market extension, retailers who have vehicles at centrally held locations where they offer home delivery or multi-site customers who are able to move vehicles to a location closer to the car buyer can advertise those cars within local searches on AutoTrader. This digital retailing product is driving incremental sales for retailers enabling them to sell beyond the physical constraints of their forecourt. The product has been launched and commercialised. Initial uptake has been strong, with over 6% of retailer stock on this product at year-end. We can also facilitate, in a cost-effective way, consumers that want to have their cars delivered through our AutoTrader Moves platform. We continue to evolve this logistics marketplace support an increasing volume of vehicle moves direct to consumers over the year we facilitated around 122 000 moves of which around 15 were delivered direct to consumers auto trader connects was launched in april 2022 as part of our annual pricing event auto trader connect allows real-time integration with our customer systems and improves data quality making it a critical foundation for digital retailing. As well as building the enablers for digital retailing on AutoTrader, we have also been building out the components of the end-to-end consumer journey. We have continued to evolve our trial for vehicle reservations during the year with the introduction of AutoTrader's Seller Promise offered by a subset of trial customers. Seller Promise is designed to give buyers greater peace of mind when completing more of the buying journey online. The promise includes agreed features offered by a retailer, such as warranties, a money-back guarantee, and MOT and service commitments. In the year, we have seen over 400 reservations convert into a transaction, which gives us confidence as we incorporate this into our full deal-builder journey. Two main challenges remain. Firstly, it will take time to change retailer behavior and processes Secondly, we need to do everything we can to ensure real-time stock availability and pricing on AutoTrader, which AutoTrader Connect supports. We have also connected our Guaranteed Pass Exchange and Instant Offer products, improving our offering for consumers who want to conveniently sell their car for cash. These products enable consumers to get an accurate and guaranteed price for their existing vehicle while shopping on AutoTrader. eliminating either the need to haggle over a past exchange or to look for other disposal routes. Consumer engagement with these products has grown over the past year. We have completed over 1.2 million guaranteed valuations and purchased over 10,000 cards through instant offer using our partner, Cox Automotive. These products are integrated with our B2B auction platform, Dealer Auction, so that cars acquired through instant offer or guaranteed pass exchange can be purchased by retailers, allowing access to stocks they would otherwise not be able to source. Finally, in July 2020, we acquired Autoconvert, who provide a finance platform that helps retailers process finance applications seamlessly between online and forecourt sales channels. We have recently launched a small trial enabling the application and approval of finance proposals on Autotrader. This product is expected to drive greater transparency for buyers, providing an upfront view of their finance options, including a soft check step and full application, thereby driving efficiencies on the forecourt. While enabling each retailer to use their choice of lender dramatically increases the complexity of the product and onboarding. We believe it will ultimately result in much greater take-up and engagement from our customers, thereby giving us the best chance of seamlessly bridging the online to offline journey. There is still a lot more work to do to bring these key components together to create an end-to-end deal builder on AutoTrader for consumers and in portal and via APIs for our retailers. At this point, we will look to scale up the trials and then move towards commercialization. Given the complexity of what we are undertaking to build a platform for all retailers and finance providers to transact seamlessly online and on a forecourt, we are pleased with our progress. Our approach will leverage and enhance the strengths of our marketplace and ultimately mean we can offer more cars for consumers to buy online while enabling any retailer to become a multi-channel retailer. As mentioned previously, we launched AutoTrader Connect as part of retailer packages in April 2022. AutoTrader Connect gives customers access to our taxonomy, which improves advert quality and specification accuracy, which flows through to valuations and pricing decisions for retailers. It also enables real-time updates between our systems and those of our customers. Customers will have the ability to create and manage adverts from their existing stock management system powered by our advanced vehicle data and shared in real time across their network. This removes the inefficiencies of daily data feeds and dual keying by retailers into multiple sales systems, maximizing margin and ensuring consistency and accuracy for consumers. We currently have integrations with over 40 third-party providers to retailers, which is about 40% of all stock management providers. We see this product as a key foundation and enabler for digital retailing on AutoTrader. Without an accurate or real-time view of stock across retailer sales channels, vehicles cannot be transacted online. I'll now pass you back to Nathan to talk through the outlook for the next financial year.