REG - Altitude Group PLC - Full Year Trading Update

AltitudeAnnouncement

23/07/2024 07:00

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RNS Number : 3784X  Altitude Group PLC  23 July 2024

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Group's obligations under Article 17 of MAR.
Upon the publication of this announcement, this inside information is now
considered to be in the public domain.

Altitude Group plc

("Altitude" or the "Group")

FULL YEAR TRADING UPDATE

Altitude delivers record breaking results and exceeds market expectations on
adjusted operating profit

 

Altitude Group Plc (AIM: ALT), the leading end-to-end solutions provider for
branded merchandise beats market expectations on adjusted operating profit and
achieves record breaking results for the year ended 31 March 2024 ("FY24"),
showcasing accelerated scale, growth and momentum.

 

Demonstrating strength and scale, the Board is pleased to report that revenues
are expected to be up 33%, at constant currency, to £24.0 million (FY23:
£18.8 million) with a record Group adjusted operating profit* of £2.4
million (FY23: £2.0 million) up by 31% at constant currency and ahead of
market expectations**. The Group has doubled revenues since FY22 and increased
adjusted operating profit* by over 225% over the same two-year period. The
Group's investment in its Merchanting divisions, including both ACS and its
collegiate market disrupting University Gear Shop solution ("UGS"), have each
contributed significant growth to the Group.

 

The Group's Affiliate programme, ACS, increased its annualised expected
revenues for FY24 by 32% to $18.0 million (FY23: $13.6 million). This has been
from a mixture of new recruitment and organic growth.

 

Current Trading

 

The current financial year ("FY25") has just completed its first full quarter
of trading and the Group continues to perform well across both its Services
division and its rapidly scaling Merchanting division. ACS has had a strong
start to FY25, adding an additional $2 million in recruitment to reach $20
million annualised expected revenues.

 

The Group continues to expand and disrupt the collegiate market. The team have
signed additional new contracts and have further campus programmes in the
pipeline for this tender season which is now anticipated to extend beyond the
summer months. Importantly, UGS has developed further strategic partnerships
with course material providers opening further opportunities for growth. UGS
has 19 campus programmes at 22 locations, with a current total lifetime
contract value of c.$45 million equating to $9 million (FY23: 5 active
contracts of $1 million) annualised average expected revenues.

 

With high levels of visibility and a strong start to FY25 the Board remains
confident in the growth potential for Altitude for FY25 and beyond.

 

Notice of Results

The Group expects to announce its FY24 audited results on 30 July 2024.

 

Nikki Stella, CEO of Altitude, said: "This has been another year of stellar
growth within the business. Altitude has delivered 6 consecutive years of
growth demonstrating the strength of its people and ability to execute. We
remain very confident about the future and look forward to another year of
significant progress."

* Operating profit before share-based payment charges, amortisation of
intangible assets, depreciation of tangible assets and exceptional charges

** External market consensus for the year ended 31 March 2024 is currently
revenue of £26.1 million and adjusted EBITDA of £2.2 million.

 For enquiries, please contact:

 Altitude Group plc                           Via Zeus

 Nichole Stella, Chief Executive Officer

 Graham Feltham, Chief Financial Officer

 Zeus (Nominated Adviser & Broker)            Tel: 0203 829 5000

 Dan Bate / James Edis (Investment Banking)

 Alice Lane (Corporate Broking)

 

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