Trading Update and Notice of Results

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 

Nichole Stella, Chief Executive Officer 

Graham Feltham, Chief Financial Officer 

 

 

Via Zeus 

Zeus (Nominated Adviser & Broker) 

Dan Bate / James Edis (Investment Banking) 

Dominic King (Corporate Broking) 

Tel: 0203 829 5000 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
UK 100

Latest directors dealings