Noticeable the article makes no reference to the director sales just 2 weeks ago - they were happy to let them go at 875p. Not impressed. |
"Auction Technology Group is a fast-growing, well managed business at the forefront of its field. The shares, at £9.43, are a buy. "
very bullish article but I disagree that the shares are a buy at £9.43 (unless one has a 3 to 5 year view), seems overpriced to me, I expect the share price to drift lower, perhaps to the low/mid 800's at which point I would take a punt. |
I'll bet there is some unsuitable language in the bedrooms of the exec directors at the moment. Four days after unloading a combined 1.1 million shares at £8.75 they are trading £2 higher. Someone is a fool, let's hope this time its them. |
Yesterday most of the senior executive directors sold a combined number exceeding 1 million shares all at £8.75. Today the market has not reacted. Is there justification for both the selling and the lack of market response? It certainly has me concerned, nobody sells like this if they think the shares are under-priced. |
 Auction Tech Group plc (ATG) issued an impressive set of HY results this morning. Revenue was £57.7m, up 16% on a proforma basis year-on-year and up 67% on a reported basis, driven by resilient growth in Total Hammer Value as well as strong growth in value-add services. Adjusted EBITDA was £26.8m, up 58% year-on-year, profit before tax was £3.3m, compared to a loss of £22.6m in the same period last year. Management increased revenue growth guidance and now expect low double digit proforma revenue growth for FY22. Margin guidance remains unchanged and management remain confident of achieving medium-term targets of mid-teens plus proforma revenue growth and mid-high 40's Adjusted EBITDA margin percentages. So more solid growth and profitable growth. Valuation is the main cloud, forward PE ratio is nearly 37x and comfortably bottom quartile for the Software & IT Services sector. A solid, profitable and high growth business. But also expensive, one to monitor for now....
...from WealthOracleAM |
Gilts yields are rising sharply. Very dangerous for stocks like ATG.
Cannot see yields settling back in this mood. |
Let's hope so! |
When I briefly looked at the Summer 2021 acquisition cost of Platinum Partners, it looked extremely expensive to me. $500mn for a company with revenues to December 2020 of $31mn and EBITDA of $16.5mn. Revenues and market share were growing very well but in retrospect it still seems too steep to me even given the obvious transformation in the auctions business. Am I wrong or does one just need to be patient and back Blackrock's judgement? (Let's ignore the Ukraine and higher interest rates for a moment).There are lots of growth companies still years off making a profit and on higher price to sales multiples and ATG is at least in the black and growing? I can't find any research on this company though I see three brokers cover it and all have it currently on Buy with Stockopedia showing the next two years (9/21 7 9/22) as revenues £110 & 130mn and net £24 then 34+mn. Current market cap is £985mn. |
Reach a swcs tip dumped yesterday despite a just OK report. I can see another disaster here unless they surprise with a profit |
This was 1500p on January 1st what a mess |
PUGUGLY, thanks for the lead, as we now know TRMCL was spot on. |
Depending on how many bought in on the SCWS tip could be more stop-lsses kicking in.
Many thanks to TRCML post No 5. Your analysis saved me a packet - Was tempted by the write-up but after your comments decided not to. |
The core problem is the technology is simple and limited barriers to entry. Competition is heavy and price cutting rife. |
I'm not so sure, I'm still watching from the sidelines. 2024 EPS forecast is 38.3p vs a current share price of 932p, so still trading at a >24x the 2 year forward PE... It's still on 45x for 2022. If it can get back into the £7 range where it IPO'd then it starts to get interesting IMO. |
Thanks for the Vox link. I sold out at the 1500p highs. One of my better investment decisions. Bought some back in at 1100p. This drop now is surely massively overdone. |
Paul Jourdan of Amati Global talks positively about ATG here (starts 11:50)
www.youtube.com/watch?v=0nJJIpsI9Uo |
Not sure, everybody hates loss making techs now due to rising interest rates. |
Support @ 1258p. I just bought more! |
These shares are down over 15% in a week and nobody has said anything. What's wrong? |
Strong operational and financial results ahead of expectations as we continue to support the transformation of the auction industry
Financial Highlights
• Revenue of £70.1m, a 34% increase on an aggregate basis year-on-year, with growth achieved in all six of the Group's marketplaces
• Adjusted EBITDA of £31.8m, a margin of 45%
• Loss before tax of £27.3m after share-based payments expense and charges for exceptional items, primarily related to the IPO and acquisition of LiveAuctioneers and intangible asset amortisation
• Refinancing complete, with a five-year New Senior Facilities Agreement, including a $204.0m term loan for the LiveAuctioneers acquisition and $49.0m revolving credit facility
• Strong cash generation, with £30.4m of adjusted free cash flow in the period and a closing net cash position of £24.6m
Since my last update, ATG has announced the acquisition of LiveAuctioneers, which looks transformational. LiveAuctioneers is an A&A portal with a strong US presence. It also brings into the fold an established payments business, which ATG will be able to roll out across its whole customer base - both I&C and A&A. Numis has lifted its eps forecast by 12% to 19.1p for the current year to end September. For the following year, eps rises 25% to 26.8p. Keep buying. |
Black rock upped stake |
Been looking at these recently and today took the opportunity |
Dip worked |
thank you montynj, as i thought |
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