Digital auction marketplace Auction Technology (ATG) is set for promotion into the FTSE 250 mid-cap index at the start of June after posting impressive recent trading.
The company reported its first half year results (to 31 March 2021) since listing shares on the stock market on 26 February 2021, showing underlying revenues up 48% to £34.5 million driven by the ongoing shift by the auction industry from offline to online continuing to accelerate post pandemic.
FTSE Russell, which runs the UK’s indices, hinted at the company’s promotion to the FTSE 250 in a announcement on 25 May, although the actual reshuffle will be worked out on market values at the close on 1 June 2021.
HOW THE BUSINESS WORKS
Auction Technology runs an online platform that helps connect auctioneers with a global pool of bidders, including businesses and private collectors. The company operates across six marketplace brands; the-saleroom, ibidder, Lot-tissimo, Proxibid and separate Bidspotter marketplaces in the US and UK.
A wide selection of goods are auctioned, including art and antiques, industrial products and consumer surplus and returns. Auctions can be online-only or combined with a live auction.
Auction Technology charges commission fees that range from 3% to 5% of the selling price struck on lots, plus a fee on vendors to place their stock on its marketplace.
GROWTH AROSS THE BOARD
Auction Technology reported growth in all six of its marketplaces, grew total hammer value 31% to £3 billion and gross merchandise value soaring 101% to £1.1 billion. Total hammer value is the entire value of goods sold across its websites while gross merchandise value is Auction Technology’s share of hammer value.
By segment, Art & Antiques revenue was £8.1 million, Industrial & Commercial £21.5 million, Auction Services £3.5 million and Content (its Antiques Trade Gazette paper and online magazine) was £1.4 million.
‘This is an impressive set of results, particularly given how busy the group was integrating Proxibid, acquiring another US business, preparing its LSE listing and replatforming its German A&A marketplace Lot-tissimo,’ said Megabuyte analyst Rob Warensjo.
Investors seem to agree, sending the share price shooting nearly 10% higher to £10.60. Auction Technology joined the stock market at 600p. This implies a market value of £1.16 billion.
