15th May 2025 11:54
(Alliance News) - Auction Technology Group PLC on Thursday reported increased profit and revenue in the first half of its financial year but said the near future is "difficult to predict", although it maintained its full-year guidance.
Shares in Auction Technology were down 7.0% to 509.00 pence late Thursday morning in London.
The London-based auction market operator and technology company reported pretax profit of USD8.9 million for the six months ended March 31, more than doubled from USD3.1 million a year before. Basic and diluted earnings per share both rose 20% to 5.7 US cents from 5.3 cents.
Auction Technology said revenue totalled USD89.0 million, up 3.4% from USD86.0 million, "driven by strong uptake of value-added services and stabilisation in gross merchandise value, with marketplace revenue up 4%".
Trading "was strong" in the first five months of the current financial year, the company added, but activity slowed in March as "the global macroeconomic volatility" prompted uncertainty, before stabilising in April.
Administrative expenses were reduced by 6.9% to USD42.4 million in the half-year from USD45.5 million a year before. The company also incurred a USD695,000 net impairment loss on trade receivables and contract assets, down from the prior year's USD1.9 million loss.
"ATG delivered a robust first half performance and made good progress on strategic initiatives, despite the challenging macroeconomic backdrop," said Chief Executive Officer John-Paul Savant. "For auctioneers, we are making it easier to engage with more relevant bidders through atgAMP, whilst also helping them to sell more, with less effort, through atgXL.
"We are also making it easier for bidders to buy unique curated auction items on our marketplaces through the expansion of atgShip, as well as through investments to improve search and discovery."
Looking ahead, Savant said: "The momentum behind these strategic programmes, along with our increasingly diversified revenue base, positions us well to navigate ongoing market uncertainty. What's more, these investments strengthen the virtuous circle and network effects of our platform, further cementing our leading position.
"The successful refinancing of our debt facilities in February underlines our financial flexibility to pursue both organic and inorganic growth opportunities as they arise."
However, Auction Technology noted: "The evolving macroeconomic and geopolitical landscape, along with US tariffs, may create both tailwinds and headwinds for ATG, making the near future difficult to predict.
"Multiple factors indicate a potential rise in the demand for and price of used I&C assets. Conversely, a slower growth environment may have a modest impact on the demand for mid-to-lower priced vintage A&A items."
Regardless, the company said: "We maintain our full-year guidance for revenue growth in the range of 4% to 6% and for adjusted Ebitda margin of between 45% to 46%, and will both monitor and adapt to the underlying markets as uncertainties are resolved."
Adjusted earnings before interest, tax, depreciation and amortisation was USD38.5 million in the first half of the year, up 7.8% from USD35.7 million a year before. Adjusted Ebitda margin was 43%, up from 42%.
Revenue was USD174.2 million in financial 2024, up 5.0% from USD165.9 million in financial 2023.
By Emma Curzon, Alliance News reporter
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