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This is despite a ramp up in auctions in the second half, which should deliver “materially higher revenue and profit.”
Gibbons added that it should start to benefit from the integration of recent acquisitions including a reduction in costs.
As previously announced, first half sales were in line with the previous year, the company said today.
But margins and profits were “substantially below those of the same period last year,” which was boosted by high-margin sales of exceptional items.
Progress was made in September, however, with the sales of some high value items to new and existing clients.
Peel Hunt said: “The company has had a tough first half with a combination of a number of distractions combined with a slower market in Asia.
Hopefully, the broker adds, these have now largely been resolved and Gibbons can refocus on opportunities.
“There should be a stronger second half performance, given a refocused management team, a stronger auction period and lower cost base,” the broker said.