Auction Technology Group plc has swung to a huge loss after imposing a goodwill impairment charge relating to previous acquisitions.
ATG, an operator of marketplaces for curated online auctions based in London, posted operating losses of $134.2 million for the year ended 30th September 2025.
It said this was driven by a non-cash goodwill impairment charge of $150.9m, higher exceptional costs and lower adjusted EBITDA year-on-year.
A non-cash goodwill impairment charge is an accounting entry that writes down the value of an intangible asset – goodwill – on a company’s balance sheet. It occurs when an acquired company’s value declines.
ATG said the impairment charge related primarily to previous acquisitions in A&A ($142.6m), with a smaller charge for Auction Services ($8.3m).
The impairment was driven by macroeconomic conditions, it said, a higher discount rate, reduced long-term growth rate and the impact of a profit warning ATG issued at the start of August.
That profit warning saw ATG’s shares sink from around 500 pence to as low as 263p by last week. However they have recovered in recent days to back above 300p.
Revenue for the year grew 9.2% to $190.2m, while adjusted EBITDA was down 4% to $76.8m.
ATG said that following the acquisition of Chairish for $85m in August, closing adjusted net debt rose to $174m, up from $114.7m.
Founded in 2013, Chairish is a list price marketplace for design inventory focused on unique, sustainable home décor. In the year to 31st December 2024, Chairish generated $51.2m of revenue from commission, seller subscriptions, marketing fees and shipping revenue, with over 80% of revenue from North America and the remaining 20% from Europe.
For FY26 ATG said it expects performance in line with market expectations: revenue growth of 4-5% – more weighted to the first half – with an adjusted EBITDA margin of 34.5-35.5%.
Earlier this year ATG secured a new £159m revolving credit facility with a syndicate of five leading banks after its private equity investor sold its stake.
“We continued to make critical strategic progress in FY25,” said CEO John-Paul Savant (pictured). “The execution this year, while not delivering financially what we had expected, helped us take meaningful steps forward to make our ambitions a reality.
“We are confident in our ability to execute against strategic initiatives and, at the same time, we understand that we must, and will, deliver on our commitments to the market.
“We believe we have the ability to do both and will also improve the clarity with which we communicate what we see as an exciting plan to deliver value to sellers, to buyers, and to ATG shareholders.”
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