REG - Altitude Group PLC - Trading Update and Notice of Results

AltitudeAnnouncement

15/11/2024 07:00

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RNS Number : 3386M  Altitude Group PLC  15 November 2024

15 November 2024

 

Altitude Group plc

("Altitude", the "Group" or the "Company")

 

Trading Update and Notice of Results

 

Altitude Group Plc (AIM: ALT), the leading end-to-end solutions provider for
branded merchandise, is pleased to provide a trading update for the six months
ended 30 September 2024 ("HY25"), ahead of the announcement of its half year
results expected to be released on 3 December 2024.

 

Trading Update

 

·      The Group's financial performance in HY25 is expected to
demonstrate strong year on year growth, with revenue expected to be over 20%
up and Adjusted Operating Profit* expected to be 9% up compared to the same
period in 2024.

 

·      The Group's disruptive collegiate Gear Shop solution continued to
expand in HY25. Since the end of FY24, the Group has signed a new university
into the programme and is in negotiations with another. The team has
successfully launched its 7 previously reported contracts and commercial
trading within these spaces has commenced. As previously announced, the Group
has further expanded strategic Gear Shop relationships. As the new tender
season has launched, we have a robust pipeline and are effectively tapping
into these expanded strategic relationships. We are currently operating 20
contracts at 23 locations with expected annualised average revenues of c$9.5m.

 

·      ACS has grown 16% in annualised run rate revenues by $3.4m to
$21.4m from robust recruitment of new affiliates in HY25. The Group recently
hit a milestone record high with more than $2m invoiced sales in a month.

 

·      The Groups' Services Division has served as a strong and
consistent foundation for the Group. While the Promotional Product industry
has experienced a period of low growth due to persistent economic uncertainty
which has been further exacerbated by elements beyond the Group's control like
rising interest rates, severe weather events and intense distraction caused by
the US election cycle, recent industry KPI's note a return to growth of nearly
5% for calendar Q3. We continue to watch these KPIs carefully as the year
progresses. With the US election completed, there is consensus that this will
drive growth in the near term within the US economy.

 

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

 

Outlook

 

The Group, despite subdued market conditions and a challenging economic
environment in the US, continues to benefit from robust growth in its
Merchanting Division. Additionally, the Group has made strong operational
progress and remains in line with the Board's expectations for the full
financial year.

 

With the US election completed, there is consensus that this will drive growth
in the near term within the US economy, and market indicators and industry
consensus points to a return to year-on-year growth in calendar Q3.  Against
this back drop the Board remain confident that it will continue to deliver on
its strategy.

 

Notice of Results

 

The Company is also looking forward to announcing its interim results for the
period ended 30 September 2024 on 3 December 2024.

 

Nikki Stella, CEO of Altitude, commented: "The Group remains focused on
delivery across all divisions. We are pleased that we have continued to drive
profitable growth and invested in people and systems to achieve greater
operational gearing during challenging market conditions. The Group
anticipates the return to industry growth to extend into the new financial
year. The Board remains confident that it will continue to deliver on its
strategy, and we look forward to further updating shareholders with our
interim results in December."

 

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)

 Dominic King (Corporate Broking)

 

 

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