Annual Report 2023
ATG operates world-leading marketplaces and auction services for curated online auctions. Using our proprietary auction platform technology, we seamlessly connect bidders from 165 countries to over 3,900 auction houses and facilitate the sale of over 22m curated used items each year.
By both allowing buyers to purchase a wide range of unique used assets and also enabling auctioneers to access the online market, ATG helps to extend the lives of millions of items, facilitating a channel of sustainable commerce and accelerating the growth of the circular economy.
“ATG has delivered another year of growth, underpinned by continued progress against our strategic priorities.”
Breon Corcoran — Chairman
Our investment case
A large and growing market structurally shifting online and facilitating the circular economy
We enable consumers to meet the growing demand to buy more sustainably through buying secondary goods at online auctions. The secondary asset market is huge and growing, with an increasing proportion of assets being sold through online auction due to the benefits of price transparency as well as speed of sale. As we simplify and improve the online auction experience, we expect our immediately addressable market to grow faster than the total secondary goods market.
Unparalleled competitive position
Our marketplaces have leading competitive positions in each of the geographies and verticals in which they operate. This generates a critical mass of bidders, which in turn results in higher realised prices for used assets and attracts new inventory. Scale enables us to invest in the products and services which improve both the auctioneer and bidder experience, enhancing the sustainability of our shared success model.
Scalable platform model with proprietary auction technology
Our proprietary auction technology offers auctioneers a unique suite of products and services on a stable and secure technology platform. Our platform operating model enables us to grow volume at a low marginal cost, whilst also enabling us to seamlessly integrate new acquisitions.
Six strategic growth drivers
Our six drivers provide multiple opportunities for growth. They are mutually re-enforcing, offering compound benefits when executed together.
1. Extend the total addressable market
2. Grow the conversion rate
3. Enhance the network effect
4. Grow the take rate via value-added services
5. Expand operational leverage
6. Pursue accretive M&A
Attractive, diversified and resilient financial model
We have a strong track record of growth. Our exposure to a mix of industries and geographies, combined with the growth in new revenue sources, results in a diversified and resilient revenue base. Our high operational leverage leads to expanding profit margins and our capital-light model ensures strong cash generation.
Experienced management team with strong track record
Our management team has a broad range of technological, commercial and e-commerce experience combined with a deep understanding of the auction industry. We have a strong track record of execution and are well placed to continue to pursue the multiple opportunities in front of us.
“We have executed on each of our six strategic growth drivers, including the accretive acquisition of ESN, and in doing so have further strengthened our competitive moat.”
John-Paul Savant — Chief Executive Officer
Our six growth drivers provide multiple compounding levels for growth
Extend the total addressable market
Existing auction houses listing more assets as well as new auction houses listing assets on ATG marketplaces will extend our immediately addressable market. To extend beyond this, we can expand into new verticals and channels within the secondary goods market, as well as extending the scope of atgPay beyond an ATG marketplace.
Grow ATG's conversion rate
ATG’s conversion rate is a function of how often ATG provides the winning bidder. On the auctioneer side, we are actively facilitating the move from live to timed auctions. On the bidder side, we are enhancing the end-to-end user experience to drive bidder acquisition, engagement and conversion.
Enhance the network effect
By enabling auctioneers to cross-list on multiple ATG marketplaces and ATG white label solutions, auction houses can access an increased pool of bidders. Meanwhile, bidders can more easily browse a wider range of curated used items.
Grow take rate via value-added services
We are developing a wide suite of services that will both simplify auctioneer operations and also improve the user experience. Services include marketing, payments and shipping.
Expand operational leverage
ATG operates a hub and spoke model with centralised support functions. This allows us to drive profitability and generate cash as we grow, whilst also enabling our businesses to remain nimble and respond to local market conditions.
Pursue accretive M&A
We operate in a large and fragmented market, which provides inorganic growth opportunities. Our acquisition focus is on new verticals and/or geographies, and/or the addition of new value-added services and other products.
The total used asset market is very large and is expected to continue to show growth.
We are committed to operating a responsible, sustainable business for the benefit of all our stakeholders.
Download the report
This report sets out our corporate governance framework and describes how the Company has applied the principles and complied with the provisions of the Code during the year.