Update on Supplier Agreements & Notice of Results

RNS Number : 4939Z

Altitude Group PLC

03 September 2018

 

Altitude Group plc

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

Update re ChannlPro Supplier Agreements

and

Notification of Interim Results

Altitude Group plc (AIM: ALT), the operator of a leading marketplace for personalised products, announces that it will publish its interim results for the six month period to 30 June 2018 ("Interim Results") on 25 September 2018. Further to the update in relationship to supplier agreements set out below, the Company will provide a full and detailed update on the positive progress being made in relation to both of the Group's white label ChannlPro platforms (AIMPro and Think Promo Now) at the time of the interim results.

ChannlPro Supplier Agreements

Following two recent significant new supplier agreements being entered into in August Altitude is pleased to confirm that agreements are now in place with a total of 65 suppliers including with 14 out of the 19 AIM preferred suppliers who are identified as being in the top 30 US Promotional Product suppliers*. All suppliers signed up have agreed to pay transaction fees on all orders derived from the platform.

The recent suppliers agreements are with two of the largest promotional product suppliers in the US with estimated aggregate annual revenues of c.$1 billion.  The addition of promotional product suppliers of this magnitude will help to ensure that the ChannlPro platforms have critical mass with regards to product offerings and will enhance the credibility of the platforms.

The Group is in the process of fully integrating these important suppliers and their product data onto the platform and AIM members will be able to commence purchasing from these suppliers immediately. These AIM preferred suppliers already have a strong ordering base with the AIM buying group and will further increase the attractiveness of the AIMPro platform to the AIM membership and as well as future white label ChannlPro platforms. 

*Source:                  Promo Marketing of US, Top 50 Supplier Ranking - July 2018

For further information please contact:       

Altitude Group plc Nichole Stella, Chief Executive Officer Graeme Couturier, Chief Financial Officer Peter Hallett, Non-Executive Chairman	[phone] 07973 683234 07887 987469
finnCap Ltd	020 7220 0500
Jonny Franklin-Adams (Corporate Finance)
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.

About Altitude

The market for promotional products in the US is estimated to be worth approximately $23 billion per annum. Approximately 90% of transactions are carried out offline. 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 purchase orders processed on the platform. 

This has been achieved by combining the Company's e-commerce trading platform, called Channl, with their 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 predominantly in the US, but also in the UK, which provides a similarly structured though much smaller (c £1 billion) market.

The ChannlPro offering brings a number of advantages to suppliers, distributors and end-users of promotional products and incorporates the Group's patented ArtWorktool design application which provides valuable proofing and process efficiency. Altitude's ultimate success depends on its ability to "on-board" large numbers of distributors and a sufficient number of suppliers onto the platform in order to generate an increasing pipeline of transactions on which Altitude will earn transaction fees from suppliers.

 

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