ATG: Lot Sold
(LON:ATG) Auction Technology Group
Auction Technology Group
Weighting as of writing: <1%
Towards the end of January 2024, I shared some notes on Auction Technology Group. The company, through its various online marketplaces, operates a two-sided network that matches auction houses and sellers with buyers, as well as provides a range of value-added services such as back office, support, marketing, delivery, payments, analytics, and account management.
The margins are illustrative of a moaty business. The number of auction houses and bidders has been growing steadily. Questions circulate the brand over its level of cyclicality. As signs of a slowdown nestled into the second half of 2023, one wondered if the spectacular growth seen since the pandemic was about the unwind. From 2020 to 2023, marketplace revenues (derived from the A&A and I&C segments, the company’s primary segments) have grown 158% from £48 million to £123.8 million. Revenues from auction services have grown 453% from £1.5 million to £8.3 million …