Auction Technology Group plc (LSE :ATG) Results

2025-11-26 · Stocks · QuoteReporter

The stocks discussed are traded on the London Stock Exchange (LSE). On November 26, 2025, Auction Technology Group plc (ATG) announced its audited financial results for the fiscal year ended September 30, 2025. The results indicate a year of mixed performance, with revenue growth but significant challenges in profitability.

For the fiscal year 2025, ATG reported revenue of $190.2 million, reflecting a 9.2% increase from $174.2 million in the previous year. This growth was primarily driven by a 13.7% increase in the Arts & Antiques (A&A) segment, which includes the recently acquired Chairish, and a modest 2.9% increase in the Industrial & Commercial (I&C) segment. On an organic basis, excluding the impact of acquisitions, revenue growth was 4.4%.

Despite the revenue increase, the company faced a substantial operating loss of $134.2 million, compared to an operating profit of $32.4 million in FY24. This loss was significantly impacted by a non-cash goodwill impairment charge of $150.9 million, alongside higher exceptional costs and a decline in adjusted EBITDA, which fell by 4.0% to $76.8 million. The adjusted EBITDA margin also decreased to 40.4% from 45.9% in the prior year.

Adjusted diluted earnings per share (EPS) were reported at 37.9 cents, down 1.8% from 38.6 cents in FY24. The basic loss per share was notably higher at 118.2 cents, compared to a profit of 19.7 cents per share in the previous year. The company also reported an increase in adjusted net debt, which rose by 52% to $174.0 million, primarily due to the acquisition of Chairish.

In terms of cash flow, ATG generated strong adjusted operating cash flow of $73.7 million, representing a conversion rate of 96%, up from 82% in FY24. The adjusted free cash flow was reported at $45.5 million, indicating robust cash generation capabilities despite the operational challenges.

Looking ahead, ATG provided guidance for fiscal year 2026, projecting revenue growth of 4-5%, driven mainly by value-added services, particularly the full-year impact of atgShip. The company anticipates that revenue growth will be more pronounced in the first half of the fiscal year. The adjusted EBITDA margin is expected to range between 34.5% and 35.5%. Furthermore, ATG aims to reduce its leverage to below 2x by the end of FY26.

Overall, while Auction Technology Group plc achieved revenue growth and maintained strong cash flow generation, the substantial operating loss and decline in profitability underscore the challenges faced during the year. The company’s strategic initiatives, including the integration of Chairish, are expected to play a crucial role in driving future performance.

Original Announcement

Title: Full Year Results
Date: 2025-11-26
Source: London Stock Exchange