Auction Technology Group Plc (LSE:ATG) said on Thursday that revenue in its Industrial & Commercial (I&C) division fell during the October–December period, even as the group exceeded its overall growth guidance. Total revenue rose 7.2% at constant currency, driven entirely by continued strength in the Arts & Antiques (A&A) segment.
The London-listed group reiterated its full-year outlook for pro forma constant currency revenue growth of 4–5%, alongside an adjusted EBITDA margin of 34.5–35.5%. Management described the financial year as weighted towards the first half, reflecting the rollout of new shipping capabilities in the second half.
Within Arts & Antiques, gross merchandise volume increased during the quarter, supported by shipping enhancements and a positive contribution from the Chairish acquisition. The company said Chairish is expected to generate annual synergies of around $8 million. The board also noted it would consider restarting share buybacks towards the end of the financial year.
However, the decline in I&C revenue drew concern from analysts. RBC Capital Markets analyst Ross Broadfoot described the weakness as “a large concern,” adding that “it appears the business is becoming more reliant on A&A to offset weakness in I&C.”
At the same time as ATG’s update, FitzWalter Capital issued a separate statement outlining discussions around a potential sale of the I&C division, creating differing narratives around events. In ATG’s own statement, chief executive Jon-Paul Savant said he is “confident that ATG has a bright future and will remain a sector leader in both A&A and I&C divisions.”
The board confirmed it “has received preliminary expressions of interest to acquire its I&C business” and that it “evaluated those in the ordinary course of business” while being “mindful of its fiduciary duties.” It added that the approaches “did not progress beyond initial discussions.”
FitzWalter’s account contrasted with this position. According to its statement, on October 6, 2025, “The Chairman of ATG confirms to FitzWalter during a telephone call that the Company had engaged in serious meetings with one third party regarding the potential sale of the I&C division, and that the hope is to announce the disposal at the Company’s full year results.” FitzWalter said the chairman indicated that any proceeds would be used “to pursue a greater scale A&A opportunity through M&A with active conversations underway,” with Chairish described as “a first step.”
FitzWalter also said that on October 17, 2025, it attended “a ’management presentation’ regarding the potential I&C disposal delivered by John-Paul Savant and Sarah Highfield (respectively, CEO and CFO of ATG).”
Broadfoot said that “the ATG and FitzWalter statements re I&C are inconsistent and need further clarification as do the drivers of the decline in this side of the business, which may explain why there was at least a thought about whether it remains part of the group.”
RBC Capital Markets reiterated a “sector perform” rating on the shares with a price target of 310 pence. The stock closed at 339.50 pence. The broker values the group at around 7 times forward EV/EBITDA, noting that the current one-year forward multiple of 7.5 times is close to a historic low.
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