REG - Altitude Group PLC - Trading Update & Secured Credit Facility

AltitudeAnnouncement

31/03/2022 07:00

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RNS Number : 6785G  Altitude Group PLC  31 March 2022

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 Company's obligations under Article 17 of
MAR.

 

Altitude Group plc

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

Full Year Trading Update & Secured Credit Facility

 

Altitude Group plc (AIM: ALT), the operator of the leading marketplace for the
global promotional products industry, provides a trading update for the
financial year to 31 March 2022 ("FY2022"). The Board is pleased to report
that the Group is experiencing accelerated recovery post Covid and continues
to successfully navigate the current business climate. The Group has increased
its core business revenue, replacing the £1.9m FY2021 of one-off Personal
Protective Equipment sales. With strong trading in FY2022, and key financial
metrics tracking ahead of last year, the Group expects to report  FY2022
revenue of c. £12.0m (FY2021:£7.7m) and adjusted operating profit * of c.
£1.0m (FY2021: £0.6m), representing increases of c. 56% and c. 80%
respectively.

 

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

Services

Group services revenue, which is derived from both AIM members and contracted
Preferred Partners, grew in FY2022 by an estimated 20%, from successful
delivery of AIM network performance. Approximately 93% of services revenues
are either annual recurring fixed revenues or repeating ad valorem marketing
revenues based on AIM members transactional volume with contracted Preferred
Partners.

Merchanting

Our merchanting programmes, which includes AIM Capital Solutions (ACS) acting
as principal in the underlying transaction, grew substantially through the
period with revenue of c. £5.6m in FY2022 (£2.3m FY2021). We are pleased
with the platform that has been built to support our Merchanting programmes
and are poised for continued growth.

Balance Sheet and Cash

The Group's cash balances and working capital cycle followed the normal and
expected path with  working capital requirement reducing in Q1 22. At 31
March 2022, the Group is expecting to report net cash excluding IFRS 16 lease
liabilities of at least £1m.

 

New Bank Credit Facility

The Group is also pleased to report it has secured a new working capital
credit facility (the "Facility") with TD Bank N.A., with an initial 12 month
revolving facility of $700k. The Facility has no significant  financial
covenants and is secured by the assets of the US Group with a parental
guarantee from Altitude. The Facility will provide access to non-dilutive
funding to support the Group in executing its growth strategy. The Facility
has an arrangement fee of $3,500 annually and incurs interest at 1% above the
US Prime Rate on drawdown. This Facility is expected to remain undrawn at the
year end.

Nichole Stella, Group CEO of Altitude, said:

"We have emerged in the post-pandemic era with positive momentum. Throughout
this difficult period we have shown consistent and organic revenue growth and
we have not needed to raise any forms of finance, neither equity or debt. It
is testament to the resilience and hard work of our team, our strong supplier
relationships and our market leading customer proposition, that we are able to
report such a positive statement.  As such, we are focused on our strategy to
scale the business and are well placed for accelerated future growth."

 

 Altitude Group plc                        Via Zeus Capital

 Nichole Stella, Chief Executive Officer

 Graham Feltham, Chief Financial Officer

 Zeus (Nominated Adviser & Broker)         Tel: +44 (0) 203 829 5000

 Dan Bate (Investment Banking)

 David Foreman (Investment Banking)

 James Edis (Investment Banking)

 Dominic King (Corporate Broking)

 

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