Auction Technology shares soar as company kicks off year 'in line with expectations'

Shares in Auction Technology Group (LSE: ATG) jumped 19% to 546.00p on Tuesday after the online auction company said it had started 2024 “in line with expectations” and that trading remains consistent with its full-year outlook.

In a brief trading update, the FTSE 250 firm reported total revenue of $43.9m for the first quarter, up 11% year-on-year, driven by “strong growth” in its value-added services. This offset a continued decline in gross merchandise value. Art and antiquities sales “grew strongly,” aided by February’s acquisition of EstateSales.NET.

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Organic growth was boosted by greater use of ATG’s integrated shipping and payment platforms. Last November, Auction Technology said the latter had been taken up by major auction sites LiveAuctioneers and Proxibid.

The company reiterated its 2024 guidance, which predicts an improvement in performance as industrial and commercial asset prices stabilise. It expects 5-8% organic revenue growth from 2023’s £135.2m and to maintain a 46% adjusted EBITDA margin.

Auction Technology will publish interim results on 16 May. Its shares have fallen 21.7% over the last 12 months.Copy