REG - Altitude Group PLC - Half-year Report

AltitudeAnnouncement

25/09/2018 07:05

RNS Number : 7858B
Altitude Group PLC
25 September 2018
 


25th September 2018
Altitude Group plc
("Altitude", the "Group" or the "Company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2018
Altitude delivers excellent growth in Throughput Revenues
Altitude Group plc (AIM: ALT), the operator of a leading marketplace for personalised products, announces its unaudited results for the six months ended 30 June 2018.
 
AIMPro & ThinkPromoNow (ChannlPro) Progress Update
·      Increasing engagement of AIM members as at 16th September 2018:
·      258% growth in the value of sales orders processed to $9.9m in last 16 weeks
·      73% of Members Processing Orders ("MPO's") have placed repeat orders
·      392% growth in the number of sales orders processed to 11,123 in last 16 weeks
·      188% growth in MPO's to 164 in the last 16 weeks
·      40% of AIM's 1,857 members are now actively engaging with US team
·      Current 8 week average order value per week $487,000
·      1,000 e-commerce websites built by AIM members
·      AIMPro officially launched in late January 2018 to the AIM buying group
·      65 AIM preferred suppliers signed up, including 14 of the top 30 US promotional product suppliers
·      Order processing began in August through Think Promo Now, the ChannlPro solution for US commercial printers launched through our partnership with NAPCO Media in late August 2018 and first users on-boarded 
 
Financial highlights
·      Revenues increased by £0.8m to £3.8m (H1 2017: £3.0m) due to £1.6m of incremental revenue from a full six months of AdProducts (H1 2017: one month), less a £0.8m decline in exhibitions and publications revenues
·      Reported operating loss of £0.7m (H1 2017: profit £0.5m), driven by a £0.5m operating cost investment in the US, and an £0.8m decline in UK exhibitions and publications contribution, both of which were broadly in line with expectations
·      Technology gross margin maintained at 80.2% (H1 2017: 80.3%)
·      Total administrative expenses increased by £1.1m to £2.8m (H1 2017: £1.7m). The increase comprised of £0.5m of operating cost investment in the US and £0.8m of incremental costs from a full six months of AdProducts
·      Loss before taxation £0.7m (H1 2017: profit £0.5m) 
·      Group remains free of bank borrowing, with net cash resources of £1.3m as at 30 June 2018 (31 December 2017: £1.9m)
·      Equity fund raise of £1.4m (net of expenses) in March 2018 to accelerate rollout of AIMPro
 
Other Operational Highlights
·      Nichole Stella appointed as CEO and Graeme Couturier appointed as CFO
·      January 2018 - full launch of AIMProTech Suite ("AIMPro") trading platform for AI Mastermind ("AIM"), the largest and fastest growing promotional products distributor group in the US now comprising 1,857 distributors with aggregate revenues of $1.6bn
·      August 2018 - partnership with NAPCO Media leading to the launch of Altitude's second ChannlPro solution, ThinkPromoNow, targeting the US commercial printer industry
·      Establishment of a dedicated US based 'on-boarding' and 'customer engagement management team' for all ChannlPro solutions
Nichole Stella, Chief Executive Officer, commented:
"After just a few months of stepping into the role of CEO, the singular global focus of Altitude Group Plc is strategically very clear. The mission is to deliver throughput on a data driven technology platform that allows suppliers to sell products to end-buyer businesses, whether through our white-labelled distributor reseller channel, AI Mastermind, Think Promo Now or additional platforms launched from our foundation e-commerce solution - Channl.
In the U.S., I am pleased to see consistent, exponential user-ship growth on our AIMPro platform, and the take-up from commercial printers on Think Promo Now. A key initial area of concentration has been building user loyalty to the platform. This strategy continues to show good results as referenced by the high levels of repeat usage and order values. Our technology is proving to be attractive to adjacent markets and we look forward to continuing to rapidly grow commercial agreements and forging additional strategic partnerships in both the US and the UK.
As noted above, the AIMPro Tech Suite is gaining traction with the members week-by-week, driven by a variety of factors; strong demand; an increasing supplier base and consistent support from our US engagement team. I am also enthused by the increase in member e-commerce website builds and repeat order frequency once members are on-boarded.
Altitude has gained significant traction in revenue throughput across AIMPro since launch and we look forward to reporting further strong progress in the months ahead. Monetisation of throughput in the period has been slower than anticipated, this has been due to relevant timing of supplier agreements and subsequent data updates (which are now resolved), and while it will impact revenue and profit expectations in the current year the Board continues to be very confident, given the KPI metrics, in the potential of the business."
 
Enquiries:



Altitude Group plc
Nichole Stella, Chief Executive Officer
Graeme Couturier, Chief Financial Officer
Peter Hallett, Non-Executive Chairman


 
+1 (215) 534 1350
07973 683234
07887 987469














finnCap Ltd


 020 7220 0500




Jonny Franklin-Adams / Scott Mathieson (Corporate Finance)








Richard Chambers (ECM)












 
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
 
 
Brief Business Overview
The market for promotional products in the US is estimated to be worth approximately $23.3 billion per annum. Approximately 76% of transactions are carried out offline (defined as an order placed by a consumer through traditional means and not via an online store or website). However, this percentage increases to approximately 90% for smaller distributors who comprise approximately 42% of the market. Altitude has developed a scalable platform that enables both offline and online promotional product transactions to be executed, allowing Altitude to generate revenue through charging transaction fees on orders initiated on the platform. 
This has been achieved by combining the Company's e-commerce trading platform, Channl, with the existing cloud-based CRM and order management system. This combined offering, now branded as ChannlPro, can be white-labelled to any specific solution. The Group is now pursuing a number of such opportunities across both the US and UK markets.
The ChannlPro offering brings a number of advantages to suppliers, distributors and end-users of promotional products and is supported in part by the Group's patented ArtWorktool technology, which provide an elevated user experience for end buyers and valuable proofing and process efficiency tools for suppliers. With a clear data and technology driven corporate mission to drive promotional product sales via our platforms, we are committed to on-boarding both users and suppliers to fill the pipeline that will earn transaction fees back to Altitude. It is notable that the pace at which we can scale the business rapidly will rely on our ability to onboard large numbers of users.
 
Chief Executive Review
Introduction
We have achieved significant further traction (detailed below) with AIM members during the period, having invested £0.5m in operating expenditure in the US, which has reinforced our belief in the opportunity. Momentum on AIMPro is accelerating and has proven responsive to our modest US on-boarding team.
In addition we have already on-boarded our first two US printing businesses to Think Promo Now, our second white label ChannlPro trading platform, developed in partnership with NAPCO Media, and launched in late August. These users are actively using the platform to both source and place orders.
 
Our strategic shift to focus on achieving the core mission of a data and technology first business impacted the legacy exhibition and publications business which will result in lower earnings in the full year albeit in an area of business that is not a growth opportunity. Our results reflect the increased operational investment in the US and the diminished returns from the legacy UK businesses which were broadly in line with management expectations, resulting in an operating loss of £0.7m for the period (H1 2017: profit £0.5m).   
AIMPro Progress
In the US, the AIM buying group - by far the largest distributor group in the US - continues to grow rapidly, currently comprising approximately 1,857 members with aggregate annual revenues of approximately US$1.6bn, representing almost 6.9% of the US market. AIMPro - launched in January 2018, is Altitude's first white-labelled ChannlPro partnership solution and is provided as a member benefit to AIM members, arising from their membership of AIM. AIMPro is also actively endorsed and promoted by AIM to its members.    
In order to provide the necessary level of support in both on-boarding members and subsequently ensuring they are comfortable with AIMPro's functionality, we have recruited our own high-quality engagement team, based in the US, which currently numbers 14. We anticipate growing this team to further enhance our ability to scale platform usage and order frequency.
Engagement Update
A total of 720 AIM members (40% of the total current membership) are now on-boarded or actively engaged with our US based team, an increase of 56% since our last update on 5 June 2018 (stats to 28 May 2018). In addition, the number of ordering members has increased by 188% to 164.
 



On-Boarding Status


16 Sept 2018


28 May 2018


Change








No.


%


No.


%


%




Placed multiple orders


120


6%


37


2%


224%




Placed first order


44


2%


20


1%


120%




Ordering Members


164


9%


57


3%


188%




On-boarded or in progress


354


19%


221


13%


60%




On-Boarding members


518


28%


278


16%


86%




Acquisition (Demo)


202


11%


184


11%


10%




Total Engaged Members


720


39%


462


27%


56%




Total AIM Membership


1,857


100%


1,704


100%


9%




% Engaged Members


39%






27%











 
The Group continues to invest in technology in response to market feedback by members which we anticipate will further accelerate traction.
 
Order Frequency
A summary of order frequency is shown in the table below. From this it can be seen that 73% of active users have placed at least two orders and 45% have placed six orders. We are encouraged by the high level of repeat orders and have found that our engagement team are able to directly influence this through repeated member coaching and interaction. 
 



Active user order frequency summary - Week 37 to 16th Sept 2018








1st Order


2nd Order


3rd Order


4th Order


5th Order


6th Order




No. of members


164


120


100


90


82


74












73.2%


61.0%


54.9%


50.0%


45.1%



We are particularly pleased that speed of adoption by members and repeat order frequency has proved sensitive to active management. It is also noted, once coaching commences, users will indeed become self-sufficient in managing their business via the platform. Both points confirm to us that we can directly impact scalability via short term active member coaching.
 
Revenue Throughput
Summary of revenue transactions processed through the AIMPro platform is as follows:-
 















16 Sept 2018






28 May 2018






Change




Total Ordering Members (No.)


164






57






187.7%






































Sales orders placed (No.)


11,123






2,261






392.0%






































Sales orders placed ($000s)


9,886






2,760






258.2%






































Current 8 week average
























Sales Order Value ($000s)






487






108






350.2%



 
Encouragingly the pattern of members purchasing from suppliers is closely correlated with sales order throughput, providing evidence that, as anticipated, distributors are placing back-to-back purchase orders with their sales orders.
Monetisation of the transactional throughput has been slower than anticipated for the following reasons:
·      Timing to build live websites for newly on-boarded members
·      Timing of sign off on agreements with the key suppliers
·      Uploading, aggregating and cleansing product data from these key suppliers. This has been an extensive initial data exercise, subsequently moved to an outsourced data provider. With the data backlog behind us and clear process in place for newly signed suppliers we are confident of GTR collection commencing during H2
We recently announced the signing of two significant supplier agreements bringing the total number of suppliers to 65 now contracted to the platform. This includes 14 of the top 30 suppliers to the US promotional products market as a whole. We anticipate making further announcements of significant supplier agreements. The benefit of greater penetration of the supplier base is that we will capture transaction fees across an increasing proportion of the end to end throughput.
 
Membership Websites & Company Stores
Also notable are the number of live websites and company stores (Channl e-commerce sites built specific to the AIM members customer with their own curated collection and branding) that have been built by the AIMpro membership. To date 1,000 websites are live across 675 AIM members.
 
NAPCO Media 
Our second ChannlPro partnership with Printing Impressions - the printing, packaging and publishing division of NAPCO, a leading and large North American digital media, marketing and publishing company, was agreed in February 2018.
Under the terms of the two-year partnership agreement Altitude will provide a 'white-labelled' ChannlPro platform to NAPCO that will mirror AIMPro as well as leveraging the same US supplier database. This second platform - "Think Promo Now" was launched in August this year, and four businesses have already been on-boarded.
The partnership will provide Altitude with access to approximately 80,000 commercial print businesses of which approximately 12,500 are already active in the promotional product market.
 
UK Business
The Group continues to provide various software applications to the promotional industry in the UK on a monthly recurring revenue 'software as a service' (SaaS) revenue model, though our main focus remains to increasingly grow applications to a share of throughput revenue model. The UK technology business remains on track.
AdProducts which was acquired in June 2017, is performing in line with expectations and we are very confident in the growth potential of the business.
With the decision to be fully committed to our 'tech-first' corporate mission to drive throughput, and the weakening industry-wide demand for traditional trade shows and print advertising, we have seen an impact on the performance of what the board define as legacy business. The growth metrics delivered in the US and their importance in delivering long term shareholder value justify the board's shift in focus. The Board are considering options with regard to the legacy business offering in the UK and will provide further updates as appropriate.
 
Results
Revenues increased by £0.8m to £3.8m (H1 2017: £3.0m), or 26.5% due to £1.6m of incremental revenue from a full six months of AdProducts (2017 one month), less the £0.8m decline in exhibitions and publications revenues.
Technology gross margin maintained at 80.2% (H1 2017: 80.3%).
Total administrative expenses increased by £1.1m to £2.8m (H1 2017: £1.7m). The increase comprised of £0.5m of operating cost investment in the US and £0.8m of incremental costs from a full six months of AdProducts. Underlying expenses decreased by £0.2m.
Loss before taxation £0.7m (H1 2017: profit £0.5m). 
Operating cash outflow from operations was £1.9m (H1 2017: £0.7m), predominantly reflecting the increased operating expenses in the US (£0.5m) and the settlement of exceptional costs from 2017 (£0.1m). In addition, a one off working capital investment in AdProducts (£0.9m) was made as a consequence of acquiring selected assets of the business, which will partially unwind in H2.
The group continues to invest in the platform and be responsive to user feedback. Investment in the period was £0.3m (2017 H1: £0.1m, full year £0.6m).
Net proceeds from the issues of shares for the February placing and regular exercises of employee share options amounted to £1.5m (H1 2017 £3.0m), resulting in a net decrease in cash of £0.6m (H1 2017:£1.4m increase).
At the end of the period cash balance was £1.3m (2017 year end: £1.9m). The business is currently free of bank debt.
 
Board Changes
Having joined the Company on 13 March 2018, Graeme Couturier was appointed to the Board as Chief Financial Officer on 13 April 2018. Graeme has significant experience across technology, ecommerce, retail and financial services and qualified as a Chartered Accountant with PWC. We are delighted to have welcomed him to the Board at a time when the development of our finance function will be critical to us realising our growth potential.
Following Graeme's appointment, it was announced that Peter Hallett would step back to Non-Executive Chairman with effect from 5 June 2018.  
At the same time, my appointment as Chief Executive Officer of the Group, with effect from 5 June 2018, was announced. I am delighted to have assumed this role and I am confident that my experience and knowledge of the promotional products industry, especially in the US, will help Altitude successfully execute on the exciting and disruptive opportunity in front of us.   
The Board is very confident that this executive team will be focused on driving results and executing the mission of the company.
 
Outlook
 
After just a few months of stepping into the role of CEO, the singular focus of Altitude Group Plc is strategically very clear. The mission is to deliver throughput on a data driven technology platform which allows suppliers to sell products to end-buyer businesses, whether through our white-labelled distributor reseller channel, AI Mastermind, Think Promo Now or additional platforms launched from our foundation e-commerce solution - Channl.
In the U.S., I am pleased to see consistent, exponential user-ship growth on our AIMPro platform, and the take-up from commercial printers on Think Promo Now. A key initial area of concentration has been building user loyalty to the platform. This strategy continues to show good results as referenced by the high levels of repeat usage and order values. Our technology is proving to be commercially attractive to adjacent markets and we look forward to continuing to rapidly grow commercial agreements and forging additional strategic alliances in both the US and the UK.
As noted above, the AIMPro Tech Suite is gaining traction with the members week-by-week, driven by a variety of factors; strong demand; an increasing supplier base and consistent support from our US engagement team. I am also enthused by the increase in member e-commerce website builds and repeat order frequency once members are on-boarded.
Altitude has gained significant traction in revenue throughput across AIMPro since launch and we look forward to reporting further strong progress in the months ahead. Monetisation of throughput in the period has been slower than anticipated, this has been due to relevant timing of supplier agreements and subsequent data updates (which are now resolved), and while it will impact revenue and profit expectations in the current year the Board continues to be very confident, given the KPI metrics, in the potential of the business.
Nichole Stella
Chief Executive Officer
 
 
25th September 2018
 
 
Consolidated income statement for the six month period ended 30 June 2018
 







Unaudited


Audited


Unaudited








6 months


12 months


6 months








30 June 2018


31 December 2017


30 June 2017








£'000


£'000


£'000




Revenue - Continuing Operations


3,760


6,106


2,972




Cost of sales


(1,659)


(1,775)


(739)




Gross profit


2,101


4,331


2,233




Administrative expenses before share based payment charges, amortisation of intangible assets and exceptional expenses


(2,442)


(3,423)


(1,419)




Operating (loss)/profit before share based payment charges, amortisation of intangible assets and exceptional charges


(341)


908


814




Share based payment charges


(66)


(79)


(27)




Amortisation of intangible assets


(208)


(383)


(161)




Exceptional charges


(117)


(321)


(131)




Total administrative expenses


(2,833)


(4,206)


(1,738)




Operating (loss)/profit


(732)


125


495




Finance expenses


(4)


0


(1)




(Loss)/profit before taxation


(736)


125


494




Taxation


0


0


-




(Loss)/profit attributable to the equity shareholders of the Company


(736)


125


494




(Loss)/earnings per ordinary share attributable to the equity shareholders of the Company :
















- Basic (pence)


(1.41p)


0.25p 


1.05P




- Diluted (pence)


(1.41p)


0.24p 


1.00p



 
Consolidated statement of changes in equity for the six month period ended 30 June 2018







Share Capital


Share Premium


Retained Earnings


Total




£'000


£'000


£'000


£'000






















At 1 January 2017


180


6,451


(5,351)


1,280




Profit for the period attributable to equity shareholders


-


-


494


494




Foreign exchange differences


-


-


57


57




Total comprehensive income


0


0


551


551




Transactions with owners recorded directly in equity:




















Shares issued for cash


23


2,927


-


2,950




Share based payment charges


-


-


27


27




Total transactions with owners


23


2,927


27


2,977




At 30 June 2017


203


9,378


(4,773)


4,808




(Loss) for the period attributable to equity shareholders


-


-


(369)


(369)




Foreign exchange differences


-


-


(39)


(39)




Total comprehensive income


0


0


(408)


(408)




Transactions with owners recorded directly in equity:




















Shares issued for cash


0


(15)


-


(15)




Share based payment charges


-


-


52


52




Total transactions with owners


0


(15)


52


37




At 31 December 2017


203


9,363


(5,129)


4,437




(Loss) for the period attributable to equity shareholders


-


-


(736)


(736)




Foreign exchange differences


-


-


46


46




Total comprehensive income


0


0


(690)


(690)




Transactions with owners recorded directly in equity:




















Shares issued for cash


15


1,530


-


1,545




Share based payment charges


-


-


66


66




Total transactions with owners


15


1,530


66


1,611




At 30 June 2018


218


10,893


(5,753)


5,358



 
Consolidated balance sheet as at 30 June 2018







Unaudited


Audited


Unaudited




30 June


31 December


30 June




2018


2017


2017




£'000


£'000


£'000




ASSETS
















Non-current assets
















Property, plant & equipment


198


100


81




Intangibles


1,139


1,059


803




Goodwill


564


564


564




Deferred tax


426


426


426




Total non-current assets


2,327


2,149


1,874




Current assets
















Inventory


1,680


1,518


976




Trade and other receivables


1,495


1,446


847




Cash and cash equivalents


1,325


1,963


2,093




Total current assets


4,500


4,927


3,916




Total assets


6,827


7,076


5,790




LIABILITIES
















Non-current liabilities
















Long Term Borrowings


100


-


-




Total non-current liabilities


100


-


-




Current liabilities
















Trade and other payables


1,369


2,639


982




Total current liabilities 


1,369


2,639


982




Total liabilities 


1,469


2,639


982




Net assets


5,358


4,437


4,808






















EQUITY
















Called up share capital


218


203


203




Share premium


10,893


9,363


9,378




Retained earnings


(5,753)


(5,129)


(4,773)




Total equity attributable to equity holders of the parent


5,358


4,437


4,808



 
 
Consolidated cash flow statement for the six month period ended 30 June 2018







Unaudited


Audited


Unaudited




30 June


31 December


30 June




2018


2017


2017




£'000


£'000


£'000




Continuing Operating activities
















Operating (loss)/profit


(732)


125


495




Amortisation of intangible assets


208


383


161




Depreciation


29


38


7




Share based payment charges


66


79


27




Operating cash (outflow)/inflow before changes in working capital


(429)


625


690




Movement in Inventory


(162)


(392)


(248)




Movement in trade and other receivables


(49)


(1,039)


(386)




Movement in trade and other payables


(1,224)


488


(742)




 Operating cash outflow from operations


(1,864)


(318)


(686)




Interest expenses


(4)


-


(1)




Net cash used in continuing operations


(1,868)


(318)


(687)




Cash flows from investing activities
















Purchase of plant and equipment


(127)


(56)


(7)




Purchase of intangible assets


(288)


(591)


(144)




Purchase of certain assets and business undertaking of Ad Products.Com Limited


-


(748)


(761)




Net cash used in investing activities


(415)


(1,395)


(912)




Financing activities
















Proceeds from borrowings


100












Issue of shares for cash (net of expenses)


1,545


2,935


2,951




Net cash from financing activities


1,645


2,935


2,951




Net increase/(decrease) in cash and cash equivalents


(638)


1,222


1,352




Cash and cash equivalents at the beginning of the period


1,963


741


741




Cash and cash equivalents at the end of the period


1,325


1,963


2,093



 
 
Notes to the half yearly financial information
 
 
1.         Basis of preparation
 
This consolidated half yearly financial information for the half year ended 30 June 2018 has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the year ended 31 December 2017, subject to the adoption of IFRS 15 "Revenue from Contracts with Customers" and IFRS 9 "Financial Instruments". The directors have concluded that the adoption of these accounting standards has not had a material impact on the financial statements. The Group's accounting policies are based on the recognition and measurement principles of International Financial Reporting Standards as adopted by the EU.
 
The consolidated half yearly report was approved by the Board of directors on 24 September 2018.
 
The financial information contained in the interim report has not been reviewed or audited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 and does not include all of the information and disclosures required for complete financial statements. 
 
The financial information relating to the year ended 31 December 2017 is an extract from the latest published financial statements on which the auditor gave an unmodified report that did not contain statements under Section 498 (2) or (3) of the Companies Act 2006 and which have been filed with the Registrar of Companies.
 
2.             Accounting policies
 
The condensed, consolidated financial statements in this half-yearly financial report for the six months ended 30 June 2018 have been prepared in accordance with the AIM Rules for Companies and on a basis consistent with the accounting policies and methods of computation consistent with those set out in the Annual Report and financial statements for the year ended 31 December 2017, except as described below. The Group has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing these interim financial statements and therefore the Interim financial information is not in full compliance with International Financial Reporting Standards. 
In preparing the condensed, consolidated financial statements, management are required to make accounting assumptions and estimates.  The assumptions and estimation methods are consistent with those applied to the Annual Report and financial statements for the year ended 31 December 2017.  Additionally the principal risks and uncertainties that may have a material impact on activities and results of the Group remain materially unchanged from those described in that Annual Report.
The Financial Reporting Council issued "Going Concern and Liquidity Risk: Guidance for Directors of UK Companies" in 2009, and "Guidance on the Going Concern Basis of Accounting and Reporting on Solvency and Liquidity Risks" in 2016. The Directors have considered these when preparing this half year financial information.
The current economic conditions create uncertainty particularly over the level of demand for the company's products and services and over the availability of finance which the directors are mindful of. The financial statements have been prepared on a going concern basis. The directors have taken steps to ensure that they believe the going concern basis of preparation remains appropriate. The key conditions are summarized below:
•       The Directors have prepared sensitised cash flow forecasts extending to December 2019. These show that the Group has sufficient fund available to meet its trading requirements
•       The Group's year to date financial performance has been factored into the sensitised cash flow forecasts
•       The Group does not have external bank borrowings or any covenants based on financial performance.
•       The Directors have considered the position of the individual trading companies in the Group to ensure that these companies are also in a position to continue to meet their obligations as they fall due.
•       The Group continues to develop the product offerings in order to meet the demands of the market and customers. During 2017 the software offering was developed and integrated into a new offering called ChannlPro which the Directors are in the process of establishing in the US market through its trading partnership with AI Mastermind and NAPCO Media.
•       The markets in which the business operates are not considered to be at significant risk due in any global economic recession.
•       There are not believed to be any contingent liabilities which could result in a significant impact on the business if they were to crystallise.
•       The Group, having made initial enquiries, believe that they could secure access to external financing.
•       Application for the R&D credits under the HRC scheme will be submitted shortly, and will provide additional working capital headroom.
 
Following this assessment, the Directors have reasonable expectation that the Group has adequate resources to continue for the foreseeable future and that carrying values of intangible assets are supported. Thus, they continue to adopt the going concern basis of accounting in preparing this half year financial information.
 
 
3.      Basic and diluted earnings per ordinary share
 
The calculation of earnings per ordinary share is based on the profit or loss for the period divided by the weighted average number of equity voting shares in issue.
 







Unaudited
30 June
2018


Audited
31 December 2017


Unaudited
30 June
2017




(Loss)/profit for the period (£'000)


(736)


125


494




Weighted average number of shares (number '000)


52,394


49,045


47,216




Fully diluted weighted average number of shares (number '000)


53,449


51,133


49,269




Basic earnings per ordinary share (pence)


(1.41p)


0.25p


1.05p




Diluted earnings per ordinary share (pence)


(1.41p)


0.24p 


1.00p



 
Share options that could potentially dilute basic earnings per share in the future were not included in the calculation of diluted earnings per share because they are antidilutive for the six months ended 30 June 2018.
 
 
4.   Interim Report
 
The Interim Report is available to download from the Company's website at www.altitudeplc.com.
 
 
 
 
 
 




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