Auction Technology Group plc

Well, firstly, you'll realize very quickly this morning that Megan was obviously the last one who practiced with the mic, so let me just bring it down to an appropriate level. And, well, look, firstly, welcome to our half-year results presentation. We obviously appreciate your continued interest in ATG. And I am delighted to be here as the new CEO. and to clearly get the benefit of the team's great work on the reaction of the markets this morning. No better to be... What was it Napoleon said? Don't give me generals, give me lucky generals. So clearly I was a lucky general this morning. So thank you to all of the team for making it very easy for me this morning. And so I'm sure the question that's top of all your minds is why did I join ATG? And... So what I can tell you is very simple. Look, I completed my diligence. I was very excited about the growth potential of this business. I mean, great oaks from acorns they become. And so, you know, I'm very confident in the original hypothesis of the business. I accept maybe the path hasn't been quite as straight as you all liked it to be, but I'm pretty sure that the opportunity absolutely remains intact. And so I'm excited to take the business and achieve that growth. The other key thing is, look, I think the strategy generally makes sense. So I've not turned up and thought, wow, I'm going to have to change the strategy here. The strategy, I think, is very clear. So what that really now allows me to do is just focus on improving and accelerating the execution of the business, and that's where the effort is going to go. Look, live formats remain a very strong growth format across global marketplaces. It's where the excitement is in any marketplace business. I've had the pleasure – of working with the top 30 marketplaces globally for the last 15 years. So, you know, it's where all the action is and we're ahead of the pack in that niche opportunity. And sometimes I think that can get lost on people. My only reflections on the company is, look, it's really clear today, probably demonstrating that more than anything, that we've strengthened the confidence over the last six months by improving the accuracy and predictability of our forecasting. reducing the risks of earning surprises and being clear on our focus areas. And I think that goes with great credit to Sarah and her team and obviously Chris and our IR team. So it's kind of, that's a key milestone for us. Look, we've grown single digit top line in the first half, but we need to be realistic. We've done that supported by lower margin VAS revenue. And so we're now going to be really starting to focus on strengthening the core fundamentals of the business, to restore a sustainable high margin growth with live auctioneers, I think, being the best bellwether you can use to see how we can achieve that. And then finally, look, you know, our continued strong free cash flow generation has enabled us to deliver efficiently while increasing our balance sheet optionality. And so I think, you know, at the heart of every great business at the end of the day is great cash conversion. And that's, you know, a key element of this business and something we want to be very focused on. Before I hand over to the team, I think it would be remiss of me not to acknowledge and thank on behalf of the board, the company and all the shareholders through the journey, Jean-Paul's 10 years of leadership of the business. You know, he, like all great CEOs, made good value for his shareholders on the journey. Not all maybe, but the vast majority. And I think, you know, the reality is it's from his 10 years of hard work that we get the pleasure of taking that platform forward. So on behalf of the company, I thank him for that. So now, without further ado, it's my great pleasure to hand over to Sarah to present the main sections of the financial results. And then she's going to be supported by Megan, who's our Chief Digital Officer, who will give you an update on our product progress. But thank you for coming.

The mic is only going to go up for the presentation. Okay, thank you, Duncan. And it's great to have Megan with us this morning as well. We've got a fair bit to get through. Well, I personally have a fair bit to get through. So I have had an extra coffee this morning. You'll be glad to know. And I will be taking you through both the financial highlights and then the business and segment performance after that as well. Then Megan will do a deep dive into our arts and antiques business, specifically live auctioneers and cherish. And then we'll wrap up and take questions. That's the order of play for this morning. With no further ado, I'll go to the results highlights. which you will have seen over the last couple of hours. Summary being ATG delivered well in the first half of the year. We had strong revenue and profit growth. And in addition, we are announcing a modest upgrade to our full year expectations. ANA has good momentum. We saw GMV growth of 5% on a pro forma basis. And that was led by higher average item value, continued take rate expansion, as a result of our work on live auctioneers and the growth in shipping. And this has contributed to strong revenue growth in the segment of 12.5%. In the IMC division, headwinds have impacted our performance in the form of cyclical agriculture market headwinds, which I think are well trailed externally, and continued medium-term competitive trends. We do continue to work to drive progress in the segment with the proxy bid re-platforming on track. Cash conversion, as Duncan said, continues to be strong. We have good operating and free cash flow generation, and this has enabled us to delever significantly with leverage down 0.4 turns to 1.8 times at the end of March. Our capital allocation policy remains unchanged and the board will consider best uses of excess capital towards the end of the year. I'll talk about that a bit more later in the presentation. And lastly, our levers are working. Organic investment across live auctioneers and Cherish is delivering. We do continue to see take rate expansion driven by our value-added services. The Cherish integration is on track and we are benefiting from cost savings that we executed across the group. So with that, as you will be aware, and I think as I've well trailed over the last few months, we did say that we would be updating our KPIs to give a cleaner read that would be more aligned to how we run the business and will also simplify the ATG story and give you a foundation for consistent messaging and also consistent assessment of performance. And I should also say these new KPIs are much more aligned to industry standards. So just to talk you through the headlines, items sold will be our volume metric going forward, and we'll replace all of the previous scale metrics. The reason we talk about items rather than lots, which is what the language would be used for, is that Cherish obviously can't have lots being a list price business. And so we will be talking about items going forward so we can encapsulate both parts of the business. Average item value is our measure of pricing. And what you'll effectively now be able to do is take items sold and average item value, and that will get you to GMV. So it's a much cleaner kind of flow through the key KPIs. And then we've heard many times about exclusions from various metrics. And so GMB definition remains the same, but we've refined it to include cherish and real estate and ATG white label. And that better aligns GMB to reported revenue. And lastly, on take rate, we've refined the definition of take rate in the same way as I've just described for GMB. And again, that will provide a cleaner read on the monetization of our platforms. So with that, and I consciously did that up front because we will use this terminology all the way through the presentation, I will move to the financial highlights. Revenue was at 7.9% on a pro forma constant currency basis. And that was driven by a strong performance in ANA with a good contribution from Cherish. Adjusted EBITDA at 9.9%. benefiting from commission growth on live auctioneers, the operational synergies from Cherish and group-wide cost efficiencies. Our margin was 33.9% and pleasingly on a pro forma basis, margins were up 0.6 percentage points year on year. As expected, our half one margins are below our full year guidance and to be clear, our margin expectations for the full year remain unchanged. Adjusted EPS, 19.9 cents, up 4.7% year-on-year, supported by the EBITDA expansion. Strong adjusted free cash flow of 26.5 million, significantly up year-on-year, and a continued strong operating cash conversion of 85%. These benefited from the higher adjusted EBITDA and also strong cash management. And lastly, we saw rapid deleveraging with net debt to EBITDA down to 1.8 times. If I now move on to group performance, as I mentioned, revenue grew 7.9% on a pro-performer basis, despite a flat GMV performance. Two key drivers here, the strong performance on ANA, including Cherish, both of which have higher take rates than industrial and commercial, So we saw a mixed benefit and then value added services, which on a pro forma basis grew 21.8% year on year. Items sold were up 2% on a pro forma basis, driven primarily by INC, which also saw a corresponding lower average item value based on some of the headwinds that I've described, meaning that overall GMB remained flat. Take rate continued to expand, and that was led by the segment mix, as I said before, of ANA and Cherish having higher take rates, but also our growth in value-added services. And that meant that our take rate improved to 7.1% in the half. Just to remind you of what I mean when I say pro forma, this reflects the inclusion of Cherish in the prior year as well as this year. And we have got a reconciliation in the appendix, which reconciles to the reported numbers that we showed in the half year last year. I'll turn to arts and antiques. And revenue grew ahead of expectations at 12.5%, with contributions from ATG shipping, good growth in Cherish, and importantly, commission growth on live auctioneers from the actions that we've taken. Items sold were relatively flat, with good growth in higher value items offset by volume decline in lower value items. And this helped to drive up the average item value in arts and antiques by 5%. And we talked about this a bit at the full year, but our investments in live auctioneers have focused on surfacing items for buyers that have a higher value and a higher propensity to sell. And that has allowed us to increase our average item value. Cherish was also supportive. Take rates up five percentage points on a reported basis and one percentage point on a pro forma basis. Again, benefiting from the growth of shipping and the growth in Cherish, which as I said, has a higher take rate. Pleasingly, the Cherish integration is on track and we remain on track for a full year run rate of 8 million of synergies in FY27 as we previously communicated. In addition to that, we will see 6 million of those operational synergies delivered in the P&L in fiscal 26 with circa 3 million in the first half. And accordingly, on the back of that, Cherish was profitable in the first half. If I now turn to industrial and commercial, the performance was impacted by market headwinds leading to a year-on-year revenue decline of 1.8%. This decline was driven by first of all, challenging agriculture markets with a significant decline in GMV on our green iron or agriculture business. Secondly, competitive dynamics including the ongoing adoption of third party white label solutions by some of our auction houses and also the impact of auction house consolidation. I'll talk about those a little bit more in the segment performance later. Items sold on IMC grew 4% in the period. And as I said before, this was offset by a decline in average item value as a result of the headwinds that I've discussed. And that led to an overall decline in GMV of 2%. Take rate remains stable. Turning to the group P&L, gross profit was up 2.2% on a pro forma basis. and gross margin diluted by 3.4 percentage points as a result of the revenue mix impacts from both shipping and cherish, as we expected. Adjusted operating costs were pleasingly down 5.7% on a pro forma basis, which is primarily driven by the realisation of cherish synergies and the cost efficiency actions that we've taken. Adjusted EBITDA, as I said, up 9.9%. with a 0.6 percentage point improvement on a pro-reformer basis, which really demonstrates some of our synergy captures. Finance costs up 40.4% on a reported basis, as we expected, as this reflects the increased net debt post a acquisition of Cherish. However, our leverage directory remains positive with leverage now at 1.8 times. And then EPS up 4.7% on a reported basis with the expansion of EBITDA partially offset by the increases in finance costs. And then if I turn to cash flow, cash generation remains a core strength of the business. With Warhooking Capital broadly flat, and no significant shift in cycle from Cherish. CapEx was $6.3 million in the half versus $5.9 million last year. And that's as we continue to take, as I've said a few times on various calls in the past, continues to take a disciplined approach to capital allocation and targeting investments in the strongest returning areas. So we've seen no step change in remote on capital as expected. Interest costs were higher year on year and in line with our expectations as a result of the higher net debt. Tax, significantly lower than the prior year. Timing of payments normalised in the first half versus the first half last year. And we've also seen benefits of being able to utilise US cherished tax losses and changes in the US R&D policy changes. And then we continue to generate good cash flow Adjusted free cash flow of 26.5 million, which is materially up year on year. And as I said, conversion rate to 85% versus 84% last year, so a really strong performance. The strong cash flow performance allows us to continue paying down debt and make strong progress against our guidance of well below two times by the end of fiscal 26. I'm now going to move and talk about cost savings as a lever for our business. So to improve efficiency and organisational effectiveness, we decided to implement an additional cost savings programme at the end of the first half. These savings help support the path to delivery of the fiscal 27 numbers, provide us flexibility to focus on the highest returning investments and support fiscal 26 delivery. Just to be clear, this is in addition to the cherished synergies that we've been talking about for some time. and in addition to the cost savings that we communicated in November. In terms of the differences this makes to the organisation, practically, we have reorganised the business to have one global commercial and operating organisation. And we now have global function owners with more accountability while we have localised teams who remain focused on delivery. In addition, we also have an ongoing review of costs to hone accountabilities, and increase agility. Things included here will be use of AI for automation and cost reduction, eliminating duplicative leadership roles, and refocusing our resources around the priority product areas, some of which Megan's going to talk about a bit later. The additional programme will give us around a full year benefit of circa 4 million in FY27, as well as a partial benefit this year, albeit less given the timing of the execution. And this supports our upgraded four-year guidance and supports our targeted investments in arts and antiques. To enact these changes, there is a $2 million additional P&L charge in exceptionals that we took in the first half. I'm going to move on to capital allocation. And I think the most important thing here is to say that our capital allocation framework remains unchanged. We set out our updated framework in November. It remains unchanged and the significant delivering we've seen in the first half illustrates the optionality that we have ahead of us. Just to reiterate, our current focus is on firstly, efficient and targeted organic investments, such as those Megan is going to present today, which are supported by our ongoing cost efficiency programme that I've mentioned. And then secondly, the continued focus on deleveraging the business. The board will consider the best use of excess capital, including shareholder returns, closer to the end of the year, once leverage reaches a range of around one and a half times. We'll look forward to hearing investors' views on the options for returning capital to shareholders as we meet you over the next few weeks. And just for clarity, our view on M&A is also unchanged. is not required to deliver a strategy. Moving on to the building blocks of fiscal 26 performance. You'll have seen this chart at the full year. So just to lay out some of the key principles and then I'll move on to the upgraded guidance. So in November, we set out the key building blocks for our guidance for fiscal 26. Our confidence in the full year delivery has increased following the good first half performance. And this is reflected in the upgraded guidance. Revenue growth for the year, we've always said will be more weighted to the first half because of the timing of the rollout of ATG ship. But we do still expect shipping to contribute positively to growth in the second half. In addition, we do continue to develop AMP, our marketing program, and have started leveraging our marketing playbook across Cherish. In the first half, we took fixed fee and targeted pricing actions to grow revenue, and we continue to see the benefit of the work and investment on live auctioneers, which is driving GMB and commission revenue. Adjusted EBITDA will continue to be supported by the execution of synergies on Cherish and the cost efficiency actions, which I've already mentioned. which will have a fuller impact in fiscal 27. As expected, and in line with our guidance, there is a dilutive impact to margin of the impact of the chair-ish integration and the dilutive impact of value-added services, particularly shipping, as we've laid out before. We continue to expect to report full-year margins in the range of 34.5% to 35.5%. towards the bottom end of that range, given the success of Cherish and Shipping, which are obviously lower margin growth. If I then turn to the updated fiscal 26 guidance, we are upgrading our guidance for the full year after the good first half. We now expect revenue growth five to six percent on a pro forma constant currency basis which to be clear is in the 248 to 250 million dollars range with an adjusted EBITDA margin as I said of thirty four and a half to thirty five and a half percent exceptionals guidance for the full year will be seven million which is higher than we set out in November And that was due to the one-off costs of actioning the cost efficiencies that I've mentioned and also corporate project activity in the first half. To be clear, all other areas of guidance remain unchanged and remain in line with the expectations we set out in November. And that completes the financial highlights. So I'm gonna briefly change hats and move on to talk about operational formats and performance and segments. So we do continue to invest in the business and we remain focused on delivering our core objectives. Over the last two years, there have been a significant number of changes at the executive and board levels, adding relevant operational, marketplace, technology and finance steps, which obviously includes the appointment of Duncan, who has the experience to guide ATG through the next phase of our journey. And May is an important month for ATG because Duncan's obviously joined in May. I joined a year ago this week, one year ago, and Megan joined two years ago this week. So we have lots of change in May, it would seem. So we've done a lot of upgrade of the leadership team, as I said, and I think that's important for future delivery. On industrial and commercial, and I am going to talk about this a bit more in a minute, we're managing headwinds, which I'll expand on very shortly. Despite this, we are focused on the modernization and the re-platforming of Proxibid, and I'll take you through our phase plan for that. I've talked about value-added services a few times, so I won't elaborate further, but the key point here is that where we've invested, we have delivered significant benefits. Work continues on creating a modernized buying experience on live auctioneers specifically. Megan's going to talk about that in a bit more detail. And this is starting to generate positive momentum in our key financial KPIs. And lastly, as I said previously, the integration of Cherish is on track. And additionally, it showed good growth in the period as it benefits from the scale of being part of the wider ATG network. So IMC. We had a relatively soft first half on industrial and commercial. As we saw the cyclical agriculture, we saw cyclical agricultural market headwinds, as well as the continuation of medium term trends have impacted the group. So taking those in turn, firstly, the well-documented macro headwinds impacting the agriculture market, which have reduced value and activity. Secondly, we've seen continued adoption of third-party white labels. Importantly, these auction houses remain using our own marketplaces as well, but with a reduced share, so impacting GMBN revenue. And thirdly, we've seen some auction house consolidation. These dynamics together mean that we have seen commission revenue under pressure, as demonstrated by the chart on the top right. On the upsides, In recent years, we have been able to grow the monetization of that GMV through our AMP marketing program. And you can see that in the chart on the bottom right. While not benefiting GMV, it has meant that the total revenue has remained stable. We also believe there's good upside from commercially trading the business harder. So if I go now specifically into asset mix, And I think this is a chart we've shown previously, showing GMV and revenue by the type of category we have within IMC. And you can see that we are in GMV growth on yellow and grey iron, with the declines focused on green iron or agricultural equipment. The competitive dynamics of white label adoption and auction house consolidation together with the broader macro challenges facing the agricultural market, which is well trailed externally, have led to a significant reduction in both GMB and revenue at 27% and 17% respectively. Comparatively, we've seen a more stable performance on yellow and grey iron, which coincides with trends seen of US heavy duty inventory tightening and combined with marginally higher prices. If I then move on to some cohort analysis showing the loyalty of our buyers and sellers on the platform, we do still have very strong buyer and seller loyalty. And it's a key strength of the business. Consistently, over 80% of G and B on INC is from buyers returning to our platforms. And this high level remains stable. In tandem, seller loyalty also remains high. with more than 90% of GMV on proxy bid, coming from sellers who've been on the platform for over five years. Moving on to the proxy bid replatforming, which we've talked about a few times, that migration is on track, and it's important to our plans for industrial and commercial, and is one of the foundations that will unlock better performance. We hit the milestone of going live with our first timed auction house in the first half for testing. In the second half of calendar 26, we'll be focused on adding live auction and value-added services functionality, as well as working with a broader cohort of auction houses to expand our operational learnings. During calendar year 27, we will be rolling out the platform more broadly. Before that happens, we can drive targeted fixed fee pricing and value-added services adoption on the platform. We can benefit from the operational discipline of having one joined up commercial organisation and we're able to deepen our loyalty programme with existing sellers. Once the migration is complete, we will additionally be able to develop and innovate our which will allow us to capture some exciting opportunities, such as the work being done on the arts and antiques side of the business. We'll be able to apply the commercial benefits we've developed for ANA, so things like AI rankings, item categorisation, price prediction and enhanced search capability. Importantly, we'll also be able to reduce OPEX, CAPEX and cost to serve, which is important because much of our investment has gone into the proxy bid replatforming over the last years. And then finally and importantly, our white label solution as a result will become more compelling as a choice to auctioneers. I'll now move on to arts and antiques. And in this segment, we're really pleased to be able to say that our targeted investment and testing is now moving the key metrics, directly contributing to GMV and revenue growth up 5% and 12.5% in the first half. As you can see from the charts on the right-hand side, we're seeing pleasing growth in value-added services revenue, and more recently in GMV and commission revenue growth. Megan's going to talk about this in more detail shortly, so I won't say too much other than just to say we're focused on three things. Converting demand into transactions by enhancing the user experience. maximising price realisation and sell-through using proprietary data that we have and driving higher revenue per transaction and deepening the value of the offer to customers through value-added services. We are clearly proving out what drives performance and iterating quickly to catch the opportunity. To be clear, and I know this is something that we often discuss in smaller groups, we have focused our investment on live auctioneers which is our largest arts and antiques platform, and that's in alignment with our disciplined capital allocation approach. However, all the work is being done in such a way that the learnings can then be replicated across to our other platforms over time. And with that, after hearing me for a long time, I will now hand over to Megan to talk about live auctioneers specifically.

Thanks, Sarah. As promised, I will adjust the mic to max height so you can all hear me. Great. Good morning, everyone. I'm Megan Schoen. I'm the Chief Digital Officer at ATG. That means I lead product, marketing, technology, and data for the group. I joined ATG after leading product at large consumer marketplaces where the levers that grow a marketplace are very well understood. Reduce friction, sharpen discovery, and use data to match buyers and inventory better. When I arrived at ATG, what struck me and excited me was the scale of the opportunity to bring that same playbook to the ATG marketplaces. We have clear headroom in the buyer experience, sitting on top of unique inventory and seller relationships that no one else has. As Sarah mentioned, we chose to start on LiveAuctioneer because it's our biggest ANA site and a logical starting point to prove out the playbook. Over the next few slides, I'm going to take you under the bonnet and showcase where we invested, what it's moving, and where we still see a long runway ahead. So first, where we put the investment. We started by reweighting the ANA investment across three explicit fronts. First, trust and buyer experience. We're focused on driving more bidders, more bids, and ultimately more items sold. Second, discovery and ranking. Better matches, higher sell-through, and better price realization on our marketplaces. And third, shared intelligence and platform leverage. We are building services and solutions that can be leveraged across multiple marketplaces to drive faster innovation, lower unit costs, and higher ROI. What we actually did in practice is simplify bidding and onboarding flows. Fewer steps from when someone arrives to when they ultimately place their first bid. We've also been leaning in on AI to better understand our inventory through things like visual recognition, and then implementing ranking models in our search and recommendations that learn from real user behavior and optimize sell-through. We've also looked at how we can standardize and highlight the most pertinent decision-making criteria for our buyers, cleaner item pages, and clearer information hierarchy across our inventory. And we've seen the results on every dimension we've invested. In the first half, we improved GMB on live auctioneers by over 8%. and lots sold by over 9%, increasing take rate by 2 percentage points. I'm going to take you through just a small sample of the successful experiments that we ran in the first half of the year to give you a sense of the type of work that we're doing on live auctioneers and the results from those actions. It's important to note, every initiative was run as a controlled experiment with a holdout group. The lists I'm going to share are measured against control, not year-on-year. So first, let's talk about trust and buyer experience. When I say trust and buyer experience, what I mean in practical terms is removing every unnecessary step, decision, or moment of hesitation between a buyer landing on an item and ultimately bidding on it. This is important because every successful low-effort bid increases the chance that buyers come back, that they opt into alerts, and ultimately bid on the next item. So friction reduction here compounds over time. Some examples of what we did. We auto-approved returning bidders so that trusted buyers no longer have to wait for the auctioneer to re-approve them every time. We suggested bid amounts on our item detail pages, so every bidder now sees clear guidance on what is a good, strong, and competitive bid, rather than starting from a blank slate and having to guess. We reduced steps in the bidding flow, tightening the path from when someone is interested to when they actually place a bid. And we focused on getting more users to opt into notifications. Unlike traditional e-commerce, timing matters, and it can be very confusing in auctions. When we get someone to opt in, we can prompt them at the right moment and guide them through the process. Across a variety of these winning experiments, we saw a 9% growth in bidders, demonstrating that our friction reduction work measurably grows the active bidder base, and a nearly 80% improvement in opted-in users. the re-engagement pool we can talk to has grown substantially, which makes every future campaign and alert that much more effective. Turning to our investment in discovery and ranking, our second pillar. Reducing friction drives more bids than bidders, but friction reduction only pays off if buyers are seeing the right items in the first place. The single biggest unlock in any two-sided marketplace is matching supply to demand. Helping buyers find the item they want helping sellers price and present it well, and helping us prioritize the items most likely to sell. Doing this at ATG is harder than a typical marketplace. Every item is one of a kind. There's no set price. Value is decided by who shows up to bid. And every auction house has its own conventions for describing items. There simply isn't an off-the-shelf engine for this, so we built it ourselves on our own data. That's where AI comes in for us. It sits behind discovery, ranking, recommendations, and relevance. It's the layer that helps us turn an unstructured catalog of one of a kind items into something a buyer can navigate. And every new buyer, new item, every new bid improves those models. So what does this actually look like in practice? Three proprietary models do most of the heavy lifting for us today, each one answering a different commercial question. Our price and sell-through model uses machine learning to help us understand what's likely to sell and for how much. Today we are using this as an input into ranking. Items that are more likely to sell get more visibility. Our similar items model helps us understand what else this buyer might want. Because we know one seller might list this as a Darth Vader action figure and the other might describe it as a plastic man with a breathing problem, The model has to go beyond keyword matching and seller descriptions, using visual recognition to find comparable items in our inventory. We also use engagement and demand signals to understand what buyers are responding to right now. We take indicators like views, saves, bids, and feed those signals into rankings so that the display of items reflects what buyers are actually responding to. Our testing efforts this year have already driven a 2% improvement in search to bid rate. That means more of our searches are turning into actual bids. And a 10% improvement in average item value, which means our buyers are finding better matched, higher value items, so each transaction is worth more. We've made tremendous progress both in standing up the models and running a meaningful volume of controlled experiments. But every one of these models is still early in its testing curve. We have a long runway of experiments ahead. Crucially, as Sarah mentioned, these are platform models. The same models can be deployed across the rest of our marketplaces, so our investments here compound rather than duplicate. Understanding the inventory is half the job. Presenting it consistently so a buyer can decide quickly and confidently is the other half. When a buyer lands on an item, they decide within seconds if it's what they're looking for. To do that confidently, they need three things in the same place every time. Trust signals, so things like purchase protection or house ratings. Logistics, so information about shipping and payments. And comparison detail, value estimates, condition reports. We redesigned item pages on live auctioneers to surface all three. Same information hierarchy, regardless of which auction house listed the item. Listings come in from thousands of sellers in every format imaginable. And just by normalizing them into one consistent format, we enable apples-to-apples comparison across sellers, which builds trust and supports more bids, which we saw in the results, a 20% increase in both bids and wins. We test these capabilities on live auctioneers because that's where we can validate the impact the fastest, but we're building them with all of our marketplaces in mind. Cherish is where we're starting to see that intent show up in practice, which brings us to the next slide. Cherish pro forma revenue grew healthily in the first half, and our synergies are on track. With 75% already delivered, we have high confidence in delivering the rest by the end of the year. But the synergy program isn't the headline of the Cherish story for me. The bigger opportunity is what happens when you take the live auctioneer's playbook to Cherish, and that's what we're now putting to work. We're still in early innings, but signals are encouraging. The similar items model is now matching inventory cross-marketplace, so a live auctioneer's buyer can be shown a relevant Cherish item and vice versa. Also, levers proven on live auctioneers are being adapted for Cherish. We've added make and offer suggestions on item detail pages. We've updated our recommendations models to leverage engagement signals. And we have a queued pipeline of further experiments. We've also launched Cherish Auctions, giving Cherish's existing sellers access to both fixed price and auction formats for the first time. Nascent, but it extends the playbook into a new format on the same supply base. We expect a lot of the learning from live auctioneers to translate to Cherish, but Cherish also opens up something our traditional auction-only marketplaces can't. An entirely new TAM in home and design, a fixed price format, and a set of testing levers that come with it. In-cart upsells, urgency signals, add-ons, bundles and promotions, the conversion mechanics that retail e-commerce has been refining for two decades applied for the first time to our audience and our data. So Cherish doesn't just inherit our playbook, it lets us extend it into formats and levers that auction alone could not reach. And every learning we generate flows back into how we think about commerce across the rest of the group. The H1 numbers start to validate the model. The experiments are working, the metrics that matter are moving, and the playbook is starting to transfer to Cherish. But the headroom in front of us is materially larger than what we have captured to date. Here are just some of the areas that we are focused on. First, matching buyers to inventory across the network. What a live auctioneer's bidder is looking for might sit on Cherish and vice versa. We know what every buyer wants, including, uniquely to auction, who bid and lost. And matching supply and demand wherever it fits across our network is largely ahead of us. Both sides win. More conversion from buyers we already have, more demand for inventory we already carry. Second, pricing intelligence at the point of listing. Today we use our pricing intelligence to rank live inventory in the marketplace. The bigger unlock is upstream, helping sellers price right at the point of listing before the item ever arrives in search. Same supply, more sold, at better prices. Third, personalization and re-engagement at scale. Most of how we engage buyers today is one-size-fits-all. With real-time intent and cross-marketplace reach, we can talk to every buyer as an audience of one. Right inventory, right moment, right channel. The unlock is more repeat bidding and greater lifetime value. And last, but certainly not least, Catalog, quality, and data enrichment. This is the foundation underneath everything else. The cleaner and richer our catalog data, the better every other model on this slide performs. Discovery, pricing, matching. It's the multiplier on the rest of the runway. Each of these four levers acts on a different part of the funnel. So improvements compound rather than overlap. So to bring this together, focused investment, a validated playbook, capabilities, built ones for the whole network, and a long runway of levers still ahead. We've made progress this year with real headroom still in front of us. And with that, I'll hand it back to Sarah.