REG - Altitude Group PLC - Pre-Close Trading Update

AltitudeAnnouncement

01/05/2024 07:15

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RNS Number : 7258M  Altitude Group PLC  01 May 2024

Altitude Group plc

("Altitude" or the "Group")

PRE-CLOSE TRADING UPDATE

Altitude Group Plc (AIM: ALT), the leading end-to-end solutions provider for
branded merchandise is pleased to provide this pre-close trading update,
showcasing continued scale, growth and momentum.

 

Results

Altitude has experienced another strong year of trading and delivered a
transformative entrance into the Collegiate market. Consequently, the Group
expects to at least meet consensus expectations(1)( )for the full financial
year ended March 31, 2024 ("FY24"). The results showcase the last 2 years of
accelerated growth with both revenue and adjusted EBITDA growing by at least
c. 100% over that period.

 

Current Trading

Altitude continues to see strong growth across its verticals: Merchanting,
continues to experience rapid scale and the Group's Services division
continues steady YOY growth, outperforming the wider promotional product
industry. Given the strategic work we have done over the recent years, we are
in a strong position today to outperform market conditions owing to our
increasingly diversified position.

 

The Group has enjoyed a very strong start in April to the financial year
ending 31 March 2025 ("FY25"). Thus far, being part way through the tender
season, new Gear Shop contracts have been awarded commencing during FY25,
equalling $12m in total estimated gross revenue over their 5-8 year terms.
Further contracts are anticipated imminently from a robust pipeline that
typically tapers in June. Additionally, our existing Gear Shops are having a
strong graduation season, providing a positive start to FY25. The Group will
keep the market informed of any further UGS contract awards as we progress
through the remainder of the tender season.

 

The Group's Affiliate programme also experienced 23% growth in recruitment,
with signings in March, thus further supporting a good start to the year.

 

Whilst the Board recognise that it is still very early in the year, it remains
confident that the Group is in line with market consensus for FY25.

 

Cash & Liquidity

FY24 Cash at the year-end was £1.3m (FY23: £1.2m). The Group is also pleased
to report it increased its US credit facilities (the "Facilities"), from $1.7m
to $3.3m. The Facilities have no significant financial covenants and are
secured by the assets of the US Group with a parental guarantee from
Altitude. The Facilities, utilised during the year to enable growth, were
undrawn at the year end with the Group generating year on year cash.

 

Notice of Results

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

 

Nichole Stella, CEO of Altitude Group, commented:

"The financial year to 31 March 2024 was yet another year of great momentum,
scale and growth. The momentum that has been across all areas of the business
for over 3 years is continuing into the 2025 financial year as evidenced by
the contracts being won by the Merchanting vertical. With the fast growth that
we have shown in recent years it is vital that the systems, the teams and the
structure are in place to allow such exponential growth to take root, succeed
and expand. We have proven that we have those foundations, strategy and people
in place, which gives the Board great confidence in our ability to continue to
execute on behalf of our shareholders."

 

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

 

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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