Auction Technology Group PLC on Wednesday reported a decrease in profit, despite revenue rising in its recent financial half year, and it expressed confidence in its full-year prospects and ability to fulfil its ‘ambitious growth plans’.
The London-based online auction operator said pretax profit for the six months that ended March 31 was £700,000, down from £3.7 million a year before, even as revenue increased 17% over the same periods to GDP67.3 million from GDP57.7 million.
Administrative expenses increased 22% to £36.7 million from £30.0 million, and cost of sales rose by 15% to £21.3 million from £18.6 million. Net finance costs increased 65% to £9.1 million from £5.5 million.
Auction Technology did not declare an interim dividend for either year.
It said it has confidence in its outlook for the rest of this financial year.
In December, Auction Technology had predicted high single-digit to low double-digit constant currency revenue growth, with a higher revenue growth rate in the current half year.
However, on Wednesday, the company said it expects constant currency revenue growth at the lower to mid end of that range due to the delayed activation of its atgPay payment processing system on Proxibid. Auction Technology said activation will proceed in the current quarter, and does not expect the timing to negatively impact revenue next year due to existing strong demand from Proxibid auctioneers.
Chief Executive Officer John-Paul Savant said Auction Technology ‘has delivered another robust set of results with solid revenue growth, margin expansion and strong cash generation, against an uncertain macroeconomic environment and exceptional growth in the prior year.’
He said the company ‘has an exciting future ahead’, adding: ‘Many growth opportunities exist as we lead the transformation of the auction industry and follow the well-trodden path of online marketplace development.’
Shares in Auction Technology were up 8.3% at 725.24 pence in London on Thursday.
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