Auction Technology (ATG) Shares Plummeted 22.7% on FY Report

The Auction Technology Group PLC (LON: ATG) share price plummeted 22.7% after releasing its full-year final results for the year to 30 September 2023. The company revealed a notable decline in annual profit, primarily attributable to increased finance costs, despite an overall rise in revenue.

The London-based online auction operator acknowledged that the economic landscape had become more challenging, impacting its growth during the latter half of the fiscal year. Nevertheless, it anticipates sustained revenue growth in the coming year, bolstered by expanding value-added services.

For the 12 months ending September 30, pretax profit stood at £7.1 million, marking a 23% decrease from £9.3 million in the preceding year. On the other hand, revenue surged by 13% to £135.2 million from £119.8 million, with 5% attributed to organic growth.

However, the platform's gross merchandise value (GMV) witnessed a 3% decline at constant currency, partially due to slower growth in total hammer value. Total hammer value increased by 3% at constant currency to £10.8 billion for the entire year but experienced a slight decline in the second half.

Conversely, revenue from value-added services exhibited a positive trend, growing by 27% in the recent fiscal year at constant currency. Offsetting the revenue increase, net finance costs doubled to £15.4 million from £7.5 million, primarily due to higher interest payments on loans and a foreign exchange loss.

Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) recorded a 19% rise to £64.0 million from £54.0 million, resulting in an improved adjusted EBITDA margin of 47%, compared to 45% in the 2022 financial year.

John-Paul Savant, the CEO of Auction Technology Group plc, said: “We have continued to deliver a robust financial performance and to execute well against each of our six strategic growth drivers.  We have streamlined our operating model to accelerate the speed with which we make decisions. As ATG continues to lead the transformation of the auction industry, we are focused on what our auctioneer partners and our bidders care about most: raising the experience of buying at auction to eCommerce standards by investing in the user experience, including payments, shipping and timed auction formats. The goal is to expand the pool of online bidders by removing friction points and, in so doing, to drive higher asset values for auctioneers and their consignors.” 

Auction Technology Group (ATG) share price chart. 

The Auction Technology Group (ATG) share price plummeted 22.67% to trade at 488.7p from Wednesday’s closing price of 632.0p.