Resilient first half for tech services group, despite disruption
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Altitude Group, the Manchester-based operator of the leading marketplace for personalised products, said it produced a resilient first half, which saw revenues rise, but losses increase.
In the six months to September 30, 2020, it reported sales of £4.443m, compared with £3.264m in 2019, while pre-tax losses of £427,000 last year rose to £601,000 for the first half this year.
It said it traded profitably by introducing an immediate and effective response to the COVID-19 pandemic and subsequent lockdowns.
The group said it traded within its existing cash resources and remains debt free with a current cash balance of £1.3m as at January 22, 2021.
Membership of its AIM operation remains stable with a total of 2,085 members, up from 1,917 at the time of acquisition, despite the impact of COVID-19.
It retained 100% participation levels in the Preferred Partner Programme, despite the impact of COVID-19.
Purchase orders processed through the AIM system have shown progressive improvement to around 70% of original volume expectations since the steepest point of COVID-19 decline in April of 2020.
AIM US revenues increased to £3.9m assisted by the Group Buy programme delivering a US adjusted operating profit of £0.5m.
Total administrative expenses for the period were £3.1m, compared with £3.4m the previous year, including the benefit of £0.4m of Paycheck Protection funding.
Chief executive, Nichole Stella, said: “In the face of the most challenging business environment in modern times, the board is pleased with the resilience, effort and performance of the team and business during the period.
“Since the acquisition of AIM in 2019, we have worked tirelessly to develop the foundation and strategy of the business, and have driven significant growth in both revenue and profit.
“This pre-pandemic effort and our ability to act quickly and pragmatically in navigating the challenges imposed by COVID-19 have ensured our ability to trade profitably during this unprecedented period of disruption, as well as protect and position the group for sustainable future growth.
“Whilst uncertainty remains on the overall duration of COVID-19 disruption, the board remains confident in the long term future of the company, its growth trajectory and strong position in the market place.”