There are few companies that are happy about inflation, but Auction Technology (ATG) might be one of them. The FTSE 250 group, which listed last year, has created an online platform that connects auction houses with potential bidders for everything from tractors to trinkets. When prices for primary goods inflate, demand for pre-owned products rises faster.
Tip style
Growth
Risk rating
Medium
Timescale
Medium Term
Bull points
- Inflation boosts second-hand goods demand
- Strong revenue growth
- Network effects provide a moat
- Capital light with strong cash flow
Bear points
- Recession could hit demand
- Rising intangibles and liabilities
The business started life as a magazine called the Antiques Trade Gazette in 1971. It began listing auctions online in 2000, before creating a live bidding platform for antiques in 2006. A website, i-bidder.com, was launched the following year to allow retail companies to sell consumer surplus and returned items.