Auction Technology confident despite slide into the red

(Sharecast News) - Auction Technology Group reaffirmed guidance on Wednesday, despite swinging into the red, after the current year got off to a "robust" start. The operator of auction and list price marketplaces saw revenues rise 9% in the year to 30 September, to $190.2m, or by 4% on an organic basis.

Adjusted earnings before interest, tax, depreciation and amortisation softened 4% to $76.8m, however, after the margin fell 5.5 percentage points to 40.4%.

The operating loss was $134.2m, compared to a profit of $32.4m a year previously. The loss was attributed to a non-cash goodwill impairment charge of $150.9m as well as higher exceptional costs.

In August, August Technology acquired loss-making furniture marketplace Chairish in a $85m deal.

The deal added to Auction's debt pile, helping to push up adjusted net debt 52% to $174m.

However, Auction said the deal "increases our scale of buyers and sellers and improves the competitive position in under-served segments". It also flagged early progress in its integration, with around $4m of expected synergies already delivered.

John-Paul Savant, chief executive, acknowledged that the financial performance had not been "what we had expected".

But despite that, he insisted the company had made "critical strategic progress" in 2025.

Looking ahead to the current year, he continued: "We have a clear set of priorities and have made a strong start against executing them."

The firm - which is forecasting revenue growth of between 4% and 5%, at constant currency and pro-forma for the consolidation of Chairish - said trading in the first month had been "robust and consistent with our expectations for the year as a whole".

The margin was forecast to come in between 34.5% and 35.5%, "reflecting mix and full year contribution of Chairish".

As at 0900 GMT, the stock was up 2% at 293.9p.