ATG’s prelim results for the year to September 2023 were broadly in line with our forecasts, with a modest outperformance on profitability, thanks to a higher gross margin and adjusted EBITDA and EBIT margins slightly ahead of our expectations. Revenue showed continued organic growth and a strong contribution from EstateSales.Net. Revenue growth in Value Added Services (VAS) was 27%, with good adoption of digital marketing solutions and increased penetration of atgPay across LiveAuctioneers and Proxibid. The increased VAS revenue along with high-margin event fee growth contributed to the higher gross margin with an increase in overall take rate.
