IAM Sold, a relative newcomer to the auction sector, has reported a 40% increase in turnover to £12.7m and a similar percentage rise in profit to £1.4m.
Newly published figures for the financial year ending October 2016 highlight how quickly the outsourced auction service provider has grown since it was founded by graduate friends Ben Ridgway and Jamie Cook eight years ago.
“We have a number of significant projects to execute this year which will put the group on a stable footing and give us a platform for success,” said Ridgway, managing director of IAM Sold’s parent company Intelligent Services Group. These include two recent appointments to key roles, with Malcolm McClen joining as sales and operations director and Eoghan Johnston as finance director.
McClen joined the company from accountancy firm Sage, and Johnston from PwC. A chief technology officer has also been appointed, reflecting the importance of electronic sales to the firm.
Ridgway added: “We are continuing to invest significantly in our future growth and this expansion includes our move to bespoke office space in July and investing in the technical infrastructure in order to further improve our service offering.”
IAM Sold operates on a strategic partnership basis, providing ‘in-the-room’ and online auction services to sellers introduced by estate agents. It works with 1,100 estate agency branches and recently completed a strategic partnership deal with The Guild of Professional Estate Agents, which includes 600 branches in the south. Similar deals have recently been signed with the Property Franchise Group, which includes Martin & Co, as well as Northwood and Belvoir.
IAM Sold rose from fifth to fourth in the 2016 league table for the top residential auction houses based on the total raised at auction. It was also named in the FTSE 1,000 fastest-growing companies in Europe.
The firm’s total collected at auction rose more than 30% year on year from £143m to £186.8m in 2016, increasing its market share from 4.2% to 5.3%. Its number of lots sold was much higher than any other auction house at more than 2,000, although its average lot size was the smallest in the top 10 at £92,800.
Ridgway said the company was on track to achieve its target of doubling revenue and profits within the next three years. It expects online sales to form a key part of this growth, with nearly two-thirds of its sales being online in February.
Its model provides buyers with an extra 28 days to complete their purchase, which helps those who are not cash purchasers to complete the deal.
Cooke, managing director, said: “While political uncertainties are dampening the appetite for investment in some areas of the market, we are continuing to invest upwards of £500,000 in our people, infrastructure and product offering over the next 12 months.
“With IAM Sold recently named in the FTSE 1,000 fastest-growing companies in Europe, as well as ISG named in the 1,000 Companies to Inspire Britain, it is a huge acknowledgement of the unique service offering and all the hard work that our people put into the business every day.”
The pair started the business in the living room of Cooke’s then girlfriend Becky, who is now his wife, and employ 120 staff.
