Last checked at 8 Jun 2023 07:00
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, has experienced a strong year of trading and has consequently enjoyed multiple upgrades for the full financial year ending March 31, 2023 ("FY23"). The Group is further pleased to announce it expects results will be at least in line with market expectations representing a minimum year-on-year increases in Revenue of c.49% and Adjusted EBITDA of c.74%.
Notice of Results
The Group expects to announce its audited results at the end of July 2023.
Current Trading
Whilst the Group's current financial year ("FY24") has just begun, initial trading has continued to be strong and is tracking significantly ahead of the same period last year benefiting from the commencement of previously announced new contracts, full year impact of strong growth from our Merchanting Division and continuing solid performance from our Services Division.
Merchanting continues to expand via its Adjacent Market Programmes (AMPs), which are progressing well with further contracts having been signed and other contracts now entering the final stages of legal negotiations. Currently, the AMPs national roll-out implementation has commenced in multiple cities across the United States, and we expect to provide further detail following the successful roll-out of our contracts towards the end of the first half of FY24 being September 2023.
In addition, via the AMPs, the Group has become a U.S. Apple Authorised Campus Store provider and will be able to offer a wide array of the latest Apple products including Mac notebooks, iPad, Apple Watch and AirPods to its clients within the AMPs.
Cash & Liquidity
FY23 Cash increased to £1.2m (FY22: £0.9m). In addition, the Group's now signed $1.7m credit facility with TD Bank N.A. is currently undrawn and in place to fund growth in working capital and investment in our Merchanting Division.
Nichole Stella, CEO of Altitude Group, commented:
"We are pleased with the continued momentum and positive start that we are experiencing in the early days of our current financial year. Management is focused on execution and delivery across all programmes, with particular attention to the roll-out of our disruptive AMPs. The Board is confident that the addition of AMPs to our business model, and managements track record in delivering growth, present a strong investment case to investors."
1 External market consensus for the year ending 31 March 2023 is currently revenue of £17.8 million and adjusted EBITDA of £1.9 million.
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