Auction Technology Group LON: ATG reported first-half revenue and profit growth and upgraded its full-year revenue outlook, as strength in Arts & Antiques and Chairish offset continued pressure in its Industrial & Commercial segment.
New CEO Duncan, speaking at his first results presentation in the role, said he joined ATG after reviewing the business and becoming “very excited about the growth potential.” He said the company’s strategy “generally makes sense” and that his focus will be on “improving and accelerating the execution of the business.”
Sarah Highfield said ATG “delivered well in the first half,” with revenue up 7.9% on a pro forma constant currency basis and adjusted EBITDA up 9.9%. Adjusted EBITDA margin was 33.9%, up 0.6 percentage points on a pro forma basis. Adjusted EPS rose 4.7% year over year to GBP 0.199.
The company generated adjusted free cash flow of GBP 26.5 million and reported operating cash conversion of 85%. Net debt to EBITDA fell to 1.8 times, down 0.4 turns from the prior level cited by management. Highfield said the group remains focused on deleveraging, with the board expected to consider uses of excess capital, including shareholder returns, closer to year-end once leverage reaches around 1.5 times.
Guidance Raised After First-Half Performance
ATG now expects full-year revenue growth of 5% to 6% on a pro forma constant currency basis, compared with its prior 4% to 5% range. Highfield said this equates to a 248 million to 250 million revenue range. The company maintained its adjusted EBITDA margin guidance of 34.5% to 35.5%, though Highfield said margins are expected to be toward the bottom end of that range due to stronger growth in lower-margin Chairish and shipping revenue.
Exceptionals guidance for the full year was increased to GBP 7 million, reflecting one-off costs related to additional cost efficiencies and corporate project activity in the first half. ATG said all other guidance items remain unchanged from November.
Highfield also announced an additional cost savings program expected to deliver a full-year benefit of about GBP 4 million in fiscal 2027, with a smaller partial benefit this year. The program includes moving to one global commercial and operating organization, eliminating duplicative leadership roles, using AI for automation and cost reduction, and refocusing resources on priority product areas. The company recorded a GBP 2 million exceptional P&L charge in the first half to enact the changes.
Arts & Antiques Drives Growth
Arts & Antiques revenue grew 12.5% in the first half, supported by atgShip, Chairish growth and commission growth on LiveAuctioneers. GMV in the segment rose 5% on a pro forma basis, while average item value increased 5%. Highfield said items sold were relatively flat, with growth in higher-value items offset by declines in lower-value items.
Take rate improved in the segment, benefiting from shipping and Chairish, which carries a higher take rate. Highfield said the Chairish integration remains on track and that ATG still expects a full-year run rate of GBP 8 million of synergies in fiscal 2027. The company expects GBP 6 million of those operational synergies to be delivered in the fiscal 2026 P&L, including about GBP 3 million in the first half. Chairish was profitable in the first half.
Megan Schoen, ATG’s Chief Digital Officer, said the company has focused investment on LiveAuctioneers because it is the group’s largest Arts & Antiques site. She said ATG is applying a marketplace playbook centered on reducing friction, improving discovery and using data to better match buyers and inventory.
Schoen said LiveAuctioneers’ GMV improved by more than 8% in the first half, with lots sold up more than 9% and take rate up two percentage points. Controlled experiments included auto-approving returning bidders, suggesting bid amounts, reducing steps in the bidding flow and increasing notification opt-ins. She said those experiments produced 9% growth in bidders and a nearly 80% improvement in opted-in users versus control groups.
ATG is also using proprietary AI models for price and sell-through predictions, similar-item matching, and engagement-based ranking. Schoen said testing drove a 2% improvement in search-to-bid rate and a 10% improvement in average item value.
Industrial & Commercial Faces Headwinds
Industrial & Commercial revenue declined 1.8% year over year, affected by cyclical agriculture market weakness, competitive dynamics and auction house consolidation. Items sold in the segment grew 4%, but average item value declined, leading to a 2% GMV decline. Take rate remained stable.
Highfield said Green Iron, or agricultural equipment, saw GMV and revenue decline 27% and 17%, respectively. She said yellow and gray iron performed more stably, with growth in GMV.
Management said some auction houses are using third-party white-label solutions while continuing to use ATG’s marketplaces, resulting in reduced share and pressure on GMV and revenue. Schoen said the competing white-label market is fragmented and that ATG expects its Proxibid replatforming to create a more compelling white-label product integrated with its marketplaces.
The Proxibid migration remains on track. Highfield said ATG went live with its first timed auction house in the first half for testing. In the second half, the company plans to add live auction and value-added services functionality and work with a broader group of auction houses. A broader rollout is expected during calendar 2027.
Management Emphasizes Execution and Data
Duncan said ATG has improved forecasting accuracy and reduced the risk of earnings surprises over the past six months. He said the business must strengthen core fundamentals to restore “sustainable high margin growth,” citing LiveAuctioneers as a bellwether for the opportunity.
On data, Duncan said ATG has made progress in capturing and organizing information across the business, but has not yet fully monetized it or converted it into “real hard competitive advantage” on the buyer side. He said the company has upside in giving buyers greater insight into pricing and item knowledge.
In response to questions, Highfield said each of ATG’s value-added services is profitable, though lower margin. She said the company’s focus is shifting from rollout and adoption toward improving buyer penetration, customer feedback and margin optimization, particularly in shipping.
Duncan said he believes Industrial & Commercial can return to growth with renewed focus on fundamentals, especially the buyer side of the marketplace. He said customers he has spoken with “really value” Proxibid, adding that ATG needs to become “slightly sharper” in helping the business progress.
About Auction Technology Group LON: ATG
Auction Technology Group plc (“ATG”) is the operator of the world's leading marketplaces and auction services for curated online auctions, seamlessly connecting bidders from around the world to over 3,800 trusted auction houses across two major sectors: Industrial & Commercial (“I&C”) and Art & Antiques (“A&A”).
The Group powers eight online marketplaces and listing sites using its proprietary auction platform technology, hosting in excess of 70,000 live and timed auctions each year. ATG has been supporting the auction industry since 1971 and the Group has offices in the UK, US and Germany.
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