The circular auction model continues to demonstrate strong resilience in an otherwise challenging e-commerce climate. A review of the group's latest annual report shows that Auctionet increased its turnover by 13 percent to SEK 538 million during the past financial year.
Behind the growth is a broad increase in the various revenue streams of the business, with the company's digital platform services and integrated transport solutions driving development with an increase of 16 percent each.
On the profitability side, the group's operating profit before depreciation (EBITDA) amounted to SEK 34.5 million. The consolidated operating result was weighed down by depreciation of tangible and intangible assets of almost SEK 45 million, landing at minus SEK 10 million, while the parent company reported a positive operating result of just over SEK 24 million.
At the same time, cash flow from operating activities strengthened to SEK 34.5 million. At the end of the year, the group had SEK 191 million in liquid funds.
Major Investment in Great Britain Following Acquisition
Auctionet was founded 15 years ago as a digital infrastructure for traditional auction houses wanting to reach a global audience. For the founder and CEO Niklas Söderholm, the international reach is the very cornerstone of the business:
As early as 2011, we were convinced that online auctions were the future, and that is even more true today. Bidders and buyers can be just as easily located in Japan or Spain as in Canada or Argentina. The development has been very strong. The fact that we have now managed to reach this level even before our 15th anniversary in December is fantastic.
In recent years, the group has also grown through strategic acquisitions, with the renowned flagship Stockholms Auktionsverk complemented by the acquisition of Uppsala Nya Auktionskammare during the past year.
Today, the network comprises over 80 affiliated auction houses in six European countries: Sweden, Germany, Great Britain, Spain, Finland and Denmark. To handle the growing goods flows, the group recently invested in a new logistics center outside London and expanded its workforce to 346 employees.