Trading Update for the First Half of FY24

Revenue
In the first six months of FY24 total revenue of $86.0m was up 6% year-on-year and up 1% on an organic basis. Total growth reflects the strong underlying performance from EstateSales.Net ("ESN") which we acquired in February 2023. Marketplace revenue grew 2% on an organic basis driven by growth in value-added services and event fees, offsetting a decline in commission revenue.

Revenue in Art & Antiques increased 17% to $44.6m including the contribution from ESN and 5% on an organic basis, primarily driven by the continued strong adoption of value-added services, and in particular the growth of atgPay and atgShip. Industrial & Commercial (“I&C”) revenue declined 2% on an organic basis to $35.2m. Proxibid was impacted by end market dynamics including the normalisation of used asset prices in some I&C categories and a lower conversion rate year-on-year. However, we are pleased with the auctioneer response to our new cross-listing offering which is driving a strong adoption of ATG’s white label and which we expect will result in an improved trajectory for Proxibid.

FY24 Outlook
We expect our full year Group revenue to be in the range of $175m-$180m implying a mid-point growth rate of 7%, including organic revenue growth of 2% - 5% and a strong contribution from ESN. Revenue growth in the second half of FY24 will be driven by the continued growth in value-added services, less challenging comparatives for the upcoming period, and encouraging trends seen from the roll out of cross-listing and ATG white label across the Group. The Group now expects its FY24 adjusted EBITDA margin to be 46% due to the mix of revenue with a higher contribution of lower margin value-added services relative to higher margin I&C commission revenue.

Half Year Results
The Group will report its interim results on Thursday 16 May 2024. The half-year results will be published at 7.00am (UK time) through the regulatory news services (RNS), followed by an analyst presentation at 9.30am (UK time). Please contact atg@Teneo.com if you would like to attend.