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 is pleased to provide this pre-close trading update, showcasing continued scale, growth and momentum.
Results
Altitude has experienced another strong year of trading and delivered a transformative entrance into the Collegiate market. Consequently, the Group expects to at least meet consensus expectations1 for the full financial year ended March 31, 2024 ("FY24"). The results showcase the last 2 years of accelerated growth with both revenue and adjusted EBITDA growing by at least c. 100% over that period.
Current Trading
Altitude continues to see strong growth across its verticals: Merchanting, continues to experience rapid scale and the Group's Services division continues steady YOY growth, outperforming the wider promotional product industry. Given the strategic work we have done over the recent years, we are in a strong position today to outperform market conditions owing to our increasingly diversified position.
The Group has enjoyed a very strong start in April to the financial year ending 31 March 2025 ("FY25"). Thus far, being part way through the tender season, new Gear Shop contracts have been awarded commencing during FY25, equalling $12m in total estimated gross revenue over their 5-8 year terms. Further contracts are anticipated imminently from a robust pipeline that typically tapers in June. Additionally, our existing Gear Shops are having a strong graduation season, providing a positive start to FY25. The Group will keep the market informed of any further UGS contract awards as we progress through the remainder of the tender season.
The Group's Affiliate programme also experienced 23% growth in recruitment, with signings in March, thus further supporting a good start to the year.
Whilst the Board recognise that it is still very early in the year, it remains confident that the Group is in line with market consensus for FY25.
Cash & Liquidity
FY24 Cash at the year-end was £1.3m (FY23: £1.2m). The Group is also pleased to report it increased its US credit facilities (the "Facilities"), from $1.7m to $3.3m. The Facilities have no significant financial covenants and are secured by the assets of the US Group with a parental guarantee from Altitude. The Facilities, utilised during the year to enable growth, were undrawn at the year end with the Group generating year on year cash.
Notice of Results
The Group expects to announce its audited results on 30 July 2024.
Nichole Stella, CEO of Altitude Group, commented:
"The financial year to 31 March 2024 was yet another year of great momentum, scale and growth. The momentum that has been across all areas of the business for over 3 years is continuing into the 2025 financial year as evidenced by the contracts being won by the Merchanting vertical. With the fast growth that we have shown in recent years it is vital that the systems, the teams and the structure are in place to allow such exponential growth to take root, succeed and expand. We have proven that we have those foundations, strategy and people in place, which gives the Board great confidence in our ability to continue to execute on behalf of our shareholders."
1 External market consensus for the year ended 31 March 2024 is currently revenue of £26.1 million and adjusted EBITDA of £2.2 million.
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