Auction Technology Group upgrades full-year guidance

(Sharecast News) - Auction Technology Group upgraded its full-year guidance on Thursday after reporting first-half revenue and earnings modestly ahead of expectations, supported by momentum in its Arts & Antiques division and the inclusion of Chairish.

The London-listed online auction marketplace operator said revenue rose 41.7% to $126.1m in the six months ended 31 March, from $89.0m a year earlier, largely reflecting the consolidation of Chairish.

On a pro forma constant currency basis, revenue increased 7.9%.

Adjusted EBITDA rose 10.9% to $42.7m, or 9.9% on a pro forma basis, while the adjusted EBITDA margin narrowed to 33.9% from 43.3% on a reported basis, but improved 0.6 percentage points on a pro forma basis.

Adjusted operating profit increased 8.8% to $36.9m.

Reported operating profit fell 53.3% to $7.0m, which ATG said reflected higher exceptional costs and increased share-based payment expenses.

The group swung to a loss after tax of $0.4m, compared with a profit of $7.0m a year earlier, after lower reported operating profit and higher finance costs.

Basic losses per share were 0.3 cents, compared with earnings per share of 5.7 cents, while adjusted diluted earnings per share rose 4.7% to 19.9 cents.

Adjusted free cash flow increased 86.6% to $26.5m, with adjusted operating cash flow of $36.2m representing cash conversion of 85%.

Adjusted net debt was $152.0m at the end of March, down from $174.0m at the end of the 2025 financial year, while leverage reduced to 1.8x from 2.2x.

ATG said the board would consider capital allocation towards the end of the year, given the rapid reduction in leverage.

On an operational basis, items sold rose 2% on a pro forma basis to 3.6 million, with flat performance in Arts & Antiques and 4% growth in Industrial & Commercial.

Group gross merchandise value was flat on a pro forma basis at $1.8bn, as a 5% increase in Arts & Antiques to $0.5bn was offset by a 2% decline in Industrial & Commercial to $1.3bn.

The group take rate increased to 7.1% from 6.6% on a pro forma basis, helped by value-added services in Arts & Antiques, particularly atgShip.

Arts & Antiques pro forma revenue rose 12.5%, with ATG saying investment in the buyer and seller experience was beginning to drive results, especially at LiveAuctioneers.

Chairish delivered revenue growth, was profitable in the first half, and remained on track to deliver $8m of operational synergies on a run-rate basis in the 2027 financial year.

ATG said $6m of synergies would be delivered in 2026, with $3m realised in the first half.

Industrial & Commercial revenue declined 1.8% on a pro forma basis, reflecting difficult agricultural markets, competitive dynamics, the adoption of third-party white-label solutions by some sellers, and auction house consolidation.

ATG said it was focused on improving the seller and buyer experience in the division through the re-platforming of Proxibid, where retention and loyalty remained high.

The company said it now expected full-year revenue growth of 5% to 6% on a constant currency and pro forma basis, up from previous guidance of 4% to 5%, driven mainly by value-added services and the full-year benefit of atgShip.

It reiterated expectations for an adjusted EBITDA margin of 34.5% to 35.5%, continued strong adjusted free cash flow generation, and group leverage well below 2x by the end of the financial year.

ATG said trading in April had been consistent with its expectations for the year.

"I am delighted to join ATG," commented new chief executive Duncan Painter.

"The company is well positioned and performing well with strong first half financials.

"There is still significant progress to be made, and our focus is to accelerate and deliver upon our potential in the second half and over the medium term."

Painter said ATG was modestly upgrading guidance after a positive start to the year driven by Arts & Antiques momentum, adding that the group expected "another period of strong free cash flow generation".

At 0901 BST, shares in Auction Technology Group were up 11.8% at 396p.

Reporting by Josh White for Sharecast.com.

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