The Tamesis
British auction house Bonhams’ latest filing with the UK Companies House showed its pre-tax losses surged nearly 90% to 213 million pounds ($286.3 million) in 2024, while revenue fell 9% to 176 million pounds ($236.6 million). financial times.
(Financial filings released through Companies House, the U.K. equivalent of the U.S. Securities and Exchange Commission, are typically delayed by a year.)
The company took an impairment charge of £153 million ($205.5 million) due to lower cash flow forecasts. In accounting terms, impairment is “an unexpected deterioration in an asset’s ability to generate future economic benefits.”
Related articles
The house noted in an email art news The fee is against the equity owner’s investment, not a cash loss, and is based on the value of investments held by former owner private equity firm Epiris, which sold the home to European private credit manager Pemberton Asset Management in October.
In effect, the impairment reflected a lower assessment of the auction house’s ability to generate future profits, which led Epiris to write down the value of its investment rather than record an operating loss.
This news coincides with the similarly dismal year-end reports of the world’s three major auction houses during the same period. Sotheby’s global sales were down 23% from 2023, Christie’s were down 8%, and Phillips’ global sales were down 14%.
Pemberton acquired Bonhams in October for an undisclosed sum. The company has since lent approximately £193 million ($259.2 million) to Bonhams. financial times. In this personnel change, Chabi Nouri (Chabi Nouri) and chief commercial officer Céline Assimon (Céline Assimon) resigned as global CEO. Nouri has been in the position for just over a year and Asimong just six months. Seth Johnson will serve as CEO, Liese Thomas will serve as chief financial officer, and Jennifer Babington will serve as chief operating officer, according to an announcement by board chairman Hans-Kristian Hoejsgaard.
“The financial position detailed in the accounts to 31 December 2024 is naturally very dated and differs significantly from today’s reality, which is optimistic and positive about the future,” the company said in an email. “Last October, Bonhams came under new ownership, bringing with it a fresh injection of capital and a new leadership team. The business is well-positioned to build on its solid foundations and meet the needs of the next generation of collectors.”
Epiris has gone through a period of significant growth, acquiring several smaller regional auction houses, bringing its number to 14 worldwide, from Hong Kong to Los Angeles and Paris. Epiris reportedly approached JPMorgan Chase to advise on a deal to sell the 233-year-old home, seeking $1 billion, but the sale process fell through, Bloomberg reported. Bonhams New York will open a store in the historic Steinway Hall in February.
