Shares in Auction Technology Group PLC (LSE:ATG) rose 13% after the company reported strong full-year results and an encouraging outlook.
Operating profit increased by 17% to $32.4 million for the year ending 30 September 2024, driven by revenue growth and improved cost efficiency.
The company’s revenue grew 5% to $174.2 million, with particularly strong performance in its Arts & Antiques segment, which saw a 12% increase.
Adjusted free cash flow rose to $65.8 million, enabling ATG to reduce its net debt from $141.2 million to $114.7 million.
ATG highlighted improving momentum in the second half of the year, with gross merchandise value (GMV) showing positive trends early in the financial year 2025.
Its take rate — revenue as a percentage of GMV — increased to 4.2%, supported by value-added services like shipping and payment solutions, which now account for 24% of revenue.
For the current year, revenue growth of 4-6% is expected. ATG also plans to maintain an EBITDA margin of 45-46% while continuing to invest in technology and customer experience improvements.
In the first hour of trading, the stock was changing hands for 499p, up 58.5p.