Altitude Group Regulatory News (ALT)

27 November 2018

Altitude Group plc

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

TRADING UPDATE

Altitude Group plc (AIM: ALT), the operator of a leading marketplace for personalised products, is pleased to provide an operational update for the 9-week period since the Interim Results announcement on 25 September 2018, ahead of the Group's CEO, Nicole Stella, presenting at a Mello investor event at Clayton Hotel, Chiswick, London later today.

AIMPro summary of progress

· As at 18 November 2018:

· Blended average transaction fees running at 2.4% of sales order value over last 12 weeks (for member control cohort)

· 75% of Members Processing Orders ("MPO's") have placed repeat orders (up from 73%)

· 47% growth in MPO's to 240 in the last 9 weeks (up from 164)

· 41.3% growth in the number of sales orders processed to 15,722 in last 9 weeks (up from 11,123)

· 35% growth in the value of sales orders processed to $13.4m in last 9 weeks (up from $9.9m)

· 65% of AIM's 1,904 members are now actively engaging with our US customer success team

· Current sales order value per week (8-week average) $675k (up from $487k)

· 1,254 live e-commerce websites built (up from 1,000)

· AIM membership increased to 1,904 (up from 1,857) representing aggregate annual revenues of approximately US $1.7 billion

· 70 AIM preferred suppliers signed up (up from 65), including 15 of the largest [US] promotional product suppliers

Member Engagement

Order Frequency

Order frequency has grown consistently throughout the last 9 week period, demonstrating growing traction with ordering members. Management data confirms that regular interaction between AIM members and our engagement team directly correlates to increased order throughput.

Revenue Throughput

Suppliers

The total number of suppliers contracted to the platform is now 70. Since September AIM have added a further 87 suppliers to their preferred supplier list which now totals 280 suppliers, thus reflecting the attractiveness in gaining increased exposure to the AIM membership.

We are accelerating our supplier engagement activity to address this expansion in the AIM preferred supplier list and expect transaction fee penetration of sales orders to continue to increase as the number of contracted suppliers increases.

Gross Transactional Revenue

The current blended 12-week average transaction fee rate for our AIM member control cohort is 2.4% of sales order value (sourced through contracted suppliers), which is in line with management expectations of 2.3% at this stage of our monetization.

Penetration of total sales orders by the currently contracted suppliers to the platform is approximately 33% for the control cohort, again in line with management expectations. We expect transaction fee penetration of sales orders will increase as the contracting of suppliers continues to rollout.

Current Trading

Current trading is in line with management expectations and on target to be broadly in line with market forecasts for the year ended 31 December 2018.

Nichole Stella, Chief Executive Officer, commented:

"As we approach the end of 2018 and begin preparations for the new year, I am enthusiastic about the traction that is building in both users on the platform and in transactional throughput and fee revenue across the AIMPro platform. We look forward to the future with the confidence as we continue to build on the momentum within the AiM member base."

Enquiries:

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.