Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Auction Technology revenue rises as it adjusts margin forecasts
(Sharecast News) - Online marketplace operator Auction Technology Group reported a 6% improvement in first-half revenue in an update on Tuesday, to $86m, as it narrowed its full-year margin guidance.
The FTSE 250 company said that on an organic basis, revenue managed a modest 1% rise year-on-year for the six months ended 31 March.
That growth was primarily attributed to the robust performance of EstateSales.Net (ESN), acquired in February last year.
Marketplace revenue experienced 2% organic growth, propelled by the expansion of value-added services and event fees, which effectively countered a decline in commission revenue.
Specifically, revenue in the art and antiques segment rocketed 17% to $44.6m, including ESN contributions, and by 5% on an organic basis.
The board said the increase was fuelled by the continuous adoption of value-added services, notably atgPay and atgShip.
However, industrial and commercial (I&C) revenue experienced a 2% organic decline to $35.2m.
Proxibid, within the I&C sector, encountered challenges due to market dynamics, such as the normalisation of used asset prices in certain categories and a lower year-on-year conversion rate.
Despite the challenges, ATG said it was satisfied with the response from auctioneers to its new cross-listing offering.
The board said the initiative was driving solid adoption of its white label, which was expected to lead to an enhanced trajectory for Proxibid in the future.
"We expect our full year group revenue to be in the range of $175m to $180m, implying a mid-point growth rate of 7%, including organic revenue growth of 2% to 5% and a strong contribution from ESN," the ATG board said in its statement.
"Revenue growth in the second half of the 2024 financial year will be driven by the continued growth in value-added services, less challenging comparatives for the upcoming period, and encouraging trends seen from the roll out of cross-listing and ATG white label across the group.
"The group now expects its 2024 adjusted EBITDA margin to be 46% due to the mix of revenue with a higher contribution of lower margin value-added services relative to higher margin I&C commission revenue."
ATG said it would report its interim results for the six months ended 31 March on 16 May.
At 0901 BST, shares in Auction Technology Group were down 13% at 542p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
