Auction Technology Group Reports Close to 8% H1 Revenue Growth; CEO to Step Down

ATG posts close to 8% H1 revenue growth and sticks to FY26 guidance

Auction Technology Group (LON: ATG) has delivered a steady first half to 31 March 2026, with H1 revenue expected at c.$125m and pro forma constant currency revenue growth close to 8% (c.9% at actual rates). Momentum from Q1 carried through Q2, and the Group has reiterated full-year guidance. That combination – growth plus intact guidance – is usually what the market wants to see.

Headline takeaway: Arts & Antiques is doing the heavy lifting, value-added services like atgShip are adding fuel, and cash generation remains strong. The softer spot is Industrial & Commercial, where revenue dipped modestly, and there’s some near-term margin dilution from mix.

H1 topline: c.$125m revenue and steady momentum

ATG expects to report H1 revenue of c.$125m. Pro forma constant currency revenue growth is close to 8%, with c.9% growth at actual rates. “Pro forma” here includes Chairish as if it were owned in the comparative period; “constant currency” strips out FX swings to show underlying growth.

That growth rate is solid for a platform business in second-hand goods, particularly given macro noise. It’s also broadly consistent with the Group’s full-year plan to grow 4-5% on a pro forma constant currency basis, noting management says growth will be more weighted to H1.

Arts & Antiques leads: shipping and GMV tailwinds

Arts & Antiques (A&A) delivered strong revenue growth. The drivers were:

• atgShip – the Group’s shipping service – which is expected to provide a full-year tailwind in FY26.
• GMV growth – GMV is gross merchandise value, the total sales value flowing through the platforms – also helped, with a seasonal boost from Easter timing.

Chairish, part of A&A, continued to post good pro forma constant currency revenue growth. The planned operational synergies at Chairish remain on track to deliver an annual run rate of $8m by FY27. That adds credibility to the integration story and underpins margins over time.

Industrial & Commercial: modest decline to watch

Industrial & Commercial (I&C) revenue declined modestly in H1. The update doesn’t quantify the drop, but it’s a clear contrast with A&A. I’d treat I&C as a watch item into the May interims to gauge whether this is a blip or a trend.

Profitability: EBITDA in line; margin mix still dilutive

Adjusted EBITDA was in line with expectations, helped by LiveAuctioneers commission growth, Chairish synergies and wider cost efficiencies. However, the adjusted EBITDA margin will reflect the consolidation of Chairish and the dilutive impact of value-added services – exactly as guided with the FY25 results.

Translation: the strategy is working (more services, more transactions), but it mixes in lower-margin revenue, so near-term margin percentages step down. Management has also launched an additional modest cost savings programme, which should boost margins in FY27, with a small benefit in H2 26.

Cash and leverage: ticking down to c.1.8x

Cash generation remained strong. The adjusted net debt to adjusted EBITDA ratio reduced to c1.8x at end-March, from 2.0x at end-December 2025. That de-risking gives management optionality and supports their guidance for leverage to be well below 2x by year-end FY26.

FY26 outlook reaffirmed: what the numbers imply

ATG has confirmed FY26 guidance and says performance is in line with November 2025 guidance and market expectations.

• Revenue growth: 4-5% on a pro forma constant currency basis, mainly from value-added services, especially the full-year benefit of atgShip.
• First-half weighted growth: implies a normalisation in H2 after a stronger H1.
• Adjusted EBITDA margin: 34.5-35.5% for the Group, reflecting mix and the full-year Chairish contribution.
• Cash: strong adjusted free cash flow continues.
• Leverage: well below 2x by end FY26.

Against current consensus for FY26 – revenue US$239.8m to US$244.9m (mid-point US$242.6m), adjusted EBITDA US$83.1m to US$85.6m (mid-point US$84.6m) – today’s update reads comfortably in-line.

The Board will consider capital allocation options towards the end of the year. No details were disclosed, so treat this as a marker rather than a promise.

CEO transition: John-Paul Savant to step down

In a separate release today, ATG said CEO John-Paul Savant will step down after more than ten years. The trading update quotes him highlighting A&A GMV progress, the shipping mandate, and Chairish momentum as drivers underpinning FY26 guidance.

Leadership changes can unsettle investors, but the timing alongside an in-line trading update helps. What matters next is clarity on succession and continuity of the current strategy focused on curated marketplaces, value-added services and data-led trust infrastructure.

Key numbers at a glance

What I’m watching into the 14 May interims

• A&A detail: the split between GMV-driven growth and atgShip, and how sustainable the Easter uplift proved.
• I&C trajectory: any signs the modest decline stabilises or reverses in early Q3.
• Margin bridge: quantifying value-added service dilution versus Chairish synergy benefits and cost efficiency savings.
• Cash conversion: confirmation that strong adjusted free cash flow persists and leverage trends below 2x.
• Chairish update: proof points on the $8m synergy run-rate by FY27 and any incremental opportunities.
• Capital allocation: any early colour on options the Board is weighing (not disclosed today).
• CEO succession: timing and structure of the transition to maintain strategic continuity.

My take: balanced progress with a few moving parts

This is a tidy H1 print: good pro forma growth, strong A&A momentum, EBITDA in line, and leverage moving the right way. Sticking to FY26 guidance – including a healthy 34.5-35.5% margin – adds confidence, as does the reiteration of strong cash generation.

The trade-offs are clear. Value-added services grow the ecosystem but dilute margins in the short term; I&C softness needs monitoring; and leadership transition introduces a touch of uncertainty. The additional cost savings programme and Chairish synergies should help margins from FY27, with a small H2 26 benefit.

Net-net, I view this update as modestly positive. Execution in A&A and shipping is doing what it should, cash is robust, and guidance is intact. The 14 May interims now become the place for detail and, hopefully, clarity on the CEO handover and capital allocation thinking.

Quick jargon buster

• GMV: Gross merchandise value – the total sales value transacted through ATG’s platforms.
• Pro forma constant currency: Treats acquisitions as if owned in the prior period and removes FX effects to show underlying growth.
• Adjusted EBITDA: Earnings before interest, tax, depreciation and amortisation, adjusted for one-offs – a proxy for operating cash earnings.
• Leverage (adjusted net debt / adjusted EBITDA): A standard debt metric; lower is better for financial flexibility.