Auction Technology Group (LSE:ATG) reported solid trading during the third quarter, prompting management to increase its full-year revenue growth guidance. Pro forma revenue at constant currency rose 7.8%, supported by continued strength in the Arts & Antiques division, where LiveAuctioneers delivered robust performance alongside strong momentum at Chairish. The company also maintained healthy cash generation, with disciplined capital allocation helping reduce adjusted net debt to adjusted EBITDA to 1.7 times.
Improved guidance reflects confidence in growth strategy
Following the stronger-than-expected performance, Auction Technology Group increased its full-year revenue growth forecast to between 5.5% and 6.5%. The company maintained its adjusted EBITDA margin guidance of 34.5% to 35.5%, although management expects margins to finish towards the lower end of that range as higher revenue from lower-margin value-added services and a full year’s contribution from Chairish influence profitability.
The group also reaffirmed expectations for solid free cash flow generation and forecast leverage to decline to around 1.5 times by the end of the financial year, highlighting confidence in the resilience of its marketplace platform despite ongoing softer trading within its Industrial & Commercial business.
Mixed financial backdrop despite positive operational momentum
Auction Technology Group’s outlook reflects a combination of encouraging operational performance and continuing financial challenges. Revenue growth and a stable balance sheet provide a supportive foundation, while technical indicators remain favourable, with the shares continuing to trade in an established uptrend supported by positive MACD signals.
However, recent losses and weaker free cash flow growth continue to weigh on the investment case. Momentum indicators also suggest the shares may be approaching overbought territory, increasing the potential for near-term volatility. Valuation remains difficult to assess due to the company’s negative price-to-earnings ratio and the absence of a dividend.
About Auction Technology Group
Auction Technology Group plc operates a portfolio of ten online marketplaces serving the Arts & Antiques and Industrial & Commercial sectors. Using proprietary technology, the company connects millions of buyers and sellers worldwide, helping digitise fragmented auction and fixed-price markets. Its operations span North America, the UK, Germany and Mexico, supporting the sale of unique and specialist items through scalable online platforms.
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