1st Dec 2022 09:52
(Alliance News) - Auction Technology Group PLC on Thursday said it swung to an annual profit in the financial year that ended September 30, as it reported a significant double-digit revenue rise.
Auction Technology is a London-based online auction operator.
Shares were trading 13% lower at 744.76 pence each on Thursday morning in London.
The FTSE-250 company swung to a profit of GBP9.3 million for financial 2022 from a loss of GBP25.0 million, while revenue surged 71% to GBP119.8 million from GBP70.1 million thanks to growth in gross merchandise value and an additional boost from value-add services.
Auction Technology explained that the previous year booked one-off costs relating to its initial public offering and an acquisition.
In Arts & Antiques, revenue surged to GBP55.3 million from GBP16.2 million the year before. In Industrial & Commercial, revenue jumped by 21% to GBP52.7 million from GBP43.7 million.
Gross profit amounted to GBP79.7 million, up 75% from GBP45.6 million the year before.
Chief Executive Officer John-Paul Savant says: "ATG has delivered another strong year of financial and operational performance, in line with the increased guidance that we provided at our [interim] results. Even as we are facing high levels of macroeconomic uncertainty, we are confident about the future."
Adjusted earnings before interest, tax, depreciation and amortisation amounted to GBP54.0 million, up 70% from GBP31.8 million year-on-year.
The company declared no dividend for financial 2022, unchanged from a year prior.
Net debt amounted to GBP129.0 million, impacted by foreign exchange movements on US dollar loan.
In regard to its current trading, Auction Technology said it has been "broadly" in line with its performance in the second half of its 2022 financial year, but it warned of the uncertain macroeconomic environment which factors in its outlook for financial 2023.
As a result, it is "confident" of a continued strong performance in its 2023 financial year, expecting high single digit to low double digit constant currency revenue growth in the year.
By Xindi Wei; [email protected]
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