REG - Altitude Group PLC - Major Contract Wins and Trading Update

AltitudeAnnouncement

28/03/2023 07:15

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RNS Number : 3859U  Altitude Group PLC  28 March 2023

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.

Altitude Group plc

("Altitude" or the "Group")

MAJOR CONTRACT WINS AND TRADING UPDATE

Altitude Group Announces Major Contract Wins

Altitude Group plc (AIM: ALT), the operator of a leading marketplace for the
global promotional products industry, is pleased to provide the following
trading update.

Major contract wins

Altitude continues to grow its footprint across the US via its Merchanting
programmes with the signing of multiple new significant contracts (the "New
Major Contracts"). These multi-year New Major Contracts will generate an
expected total combined gross revenue value of c.$30m, including $8m signed
and subject to State clearance, throughout their 5-year terms.  All New Major
Contracts are expected to begin generating revenue for the Group in the first
half of the next financial year ending March 2024 ("FY24"). The revenues
generated under these New Major Contracts will be in addition to the $1m gross
annualised revenue already expected for FY24 under existing Adjacent Market
Programmes (AMPs) contracts.

These New Major Contract wins have a material impact on the Group and
demonstrate the success of the Group's investment throughout this financial
year ("FY23") in the development and growth of its pipeline, yielding positive
results across its Merchanting Programmes.

A number of other major contracts of material value to the Group are in
late-stage legal negotiations.

Merchanting Programmes

Altitude's Merchanting programmes include its AMPs and its AIM Capital
Solutions (ACS) Affiliate programme where the Group acts as principal in the
sale of promotional products.

·      The New Major Contracts sit within the Group's AMPs, where the
Group provides its integrated technology and merchandising capabilities.

·      Within ACS the Group will enter the new financial year with an
expected annualised run-rate of c. $14m, thus doubling its annualised run-rate
from the prior year (FY23: $7m).

The continued progress Altitude has made within its Merchanting programmes
highlights the potential for continued rapid expansion. Having invested in
platforms, programmes and pipeline development the Board looks forward to the
continued scaling and growth of the business.

Year End Trading Update

The Group has had a strong close to the year and the Board are pleased to
announce that FY23 Adj EBITDA will be ahead of market expectations.
Furthermore, as a result of the New Major Contracts, trading in FY24 is
expected to start strongly and the Board are very confident in improving on
Altitude's record profitability. We will provide a further trading update in
due course.

Nichole Stella, CEO of Altitude said:

"We are delighted to be starting our new financial year with these significant
new contracts, showcasing rapid progress in the Group's ability to grow its
long-term revenue base. With investment focused on business development, FY23
has proven to be a pivotal year for the Group, resulting in excellent
visibility of revenues through these multimillion-dollar long-term contract
wins."

 

 Enquiries:

 

 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 / David Foreman / James Edis (Investment Banking)

 Dominic King (Corporate Broking)

 

 

 

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