Auction Technology Group shares drop on uncertain outlook

(Sharecast News) - Shares in Auction Technology Group dropped on Thursday after the marketplace operator maintained its full-year outlook but sounded a note of caution regarding macroeconomic volatility. Alongside its interim results for the half year ended 31 March, the company said trading over first five months of the financial year was strong, but activity levels slowed in March "due to uncertainty in our underlying markets as trade buyers and consumers paused some activity to take stock of the global macroeconomic volatility". Trading subsequently stabilised in April.

While ATG maintained its guidance for full-year revenue growth of 4-6% and an adjusted EBITDA margin of 45-46%, it said that the near future was "difficult to predict".

"The evolving macroeconomic and geopolitical landscape, along with US tariffs, may create both tailwinds and headwinds for ATG," the company said.

In the first half, revenues were up 3% year-on-year at $89m, supported by the strong uptake of value-added services, while gross merchandise values rose 1%.

Adjusted EBITDA was 8% higher at $38.5m, with the adjusted EBITDA margin up 1 percentage point at 43%.

Adjusted net debt fell to $106.5m from $141.6m as a successful debt refinancing during the period helped cut debt costs. "The successful refinancing of our debt facilities in February underlines our financial flexibility to pursue both organic and inorganic growth opportunities as they arise," said chief executive John-Paul Savant.

Meanwhile, "proactive and disciplined capital allocation" enabled ATG to launch a $40m share repurchase programme.

Shares were down 7.1% at 508p by 0905 BST.