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Auction Technology earnings rise as it lifts 2022 forecast

By Josh White

Date: Thursday 02 Dec 2021

Auction Technology earnings rise as it lifts 2022 forecast

(Sharecast News) - Auction Technology reported revenue of £70.1m in its full-year results on Thursday, making for a 34% increase year-on-year, with growth recorded in all six of its marketplaces.
The FTSE 250 marketplace and technology company said its adjusted EBITDA was up 43% for the year ended 30 September at £31.8m, at a margin of 45%, up three percentage points year-on-year.

It recorded a loss before tax of £27.3m, 44% wider than last year, after share-based payments expenses and charges for exceptional items, primarily related to the IPO and acquisition of LiveAuctioneers and intangible asset amortisation.

During the year, Auction Technology completed its refinancing with a five-year new senior facilities agreement, including a $204m term loan for the LiveAuctioneers acquisition and a $49m revolving credit facility.

The company said it saw "strong" cash generation, with £30.4m of adjusted free cash flow in the period and a closing net cash position of £24.6m.

Looking ahead, the company said it expected the 2022 financial year to consist of revenue growth in the high-single to low-double digits, ahead of its original initial public offering guidance and analyst consensus, and was confident in achieving its medium-term growth target of mid-teens-plus revenue growth.

It said it expected a continued improvement in the underlying operating margin, although that would be offset in the new financial year by a combination of full-year public limited company costs, the impact of lower margin payments revenue, and an incremental £2m of growth-focused investment.

Auction Technology said it remained confident in achieving adjusted EBITDA margin percentages in the mid-to-high 40's over the medium term.

"I am proud of our achievements as a newly listed company over the past 12 months," said chief executive officer John-Paul Savant.

"Our success has been driven by the foundation we have built over the last five years and by the enormous efforts of our committed team at ATG working closely with our auctioneers, bidders and partners, which is collectively allowing us to continue to progress our mission of transforming the auction industry.

"We delivered revenue growth of 34% and were excited to welcome Auction Mobility and, following our financial year end, LiveAuctioneers, to the group."

Savant said the firm was "ideally placed" to "lead and benefit" from the auction industry's ongoing structural shift to online, and increased consumer demand for auctions, as it was focussed on "unlocking the value" of the curated secondary goods market.

"Our financial and strategic progress reflects this compelling opportunity - we look forward to continuing to accelerate the growth of the circular economy and further enhancing an important channel of sustainable commerce."

At 0952 GMT, shares in Auction Technology Group were up 0.3% at 1,326p.


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