Altitude Group reports new contracts worth up to $30m and better than expected results
New contracts worth around $30m have been reported today by Altitude Group, the Manchester-based operator of a leading marketplace for the global promotional products industry.
Altitude said it continues to grow its footprint across the US via its Merchanting programmes with the signing of multiple new significant contracts.
These multi-year New Major Contracts will generate an expected total combined gross revenue value of around $30m, including $8m signed and subject to State clearance, throughout the five-year terms.
All New Major Contracts are expected to begin generating revenue for the group in the first half of the next financial year ending March 2024.
The revenues generated under these New Major Contracts will be in addition to the $1m gross annualised revenue already expected for fiscal year 2024 under existing adjacent market programmes (AMPs) contracts.
These New Major Contract wins have a material impact on the group which it said demonstrates the success of the group’s investment throughout this financial year in the development and growth of its pipeline, yielding positive results across its merchanting programmes.
A number of other major contracts of material value to the group are in late-stage legal negotiations.
The continued progress Altitude has made within its merchanting programmes highlights the potential for continued rapid expansion, it said. Having invested in platforms, programmes and pipeline development the board said it looks forward to the continued scaling and growth of the business.
In a trading update today, the group said it has had a strong close to the year and the board is pleased to announce that fiscal year 2023 adjusted EBITDA will be ahead of market expectations.
Furthermore, as a result of the New Major Contracts, trading in 2024 is expected to start strongly and the board is very confident in improving on Altitude’s record profitability.
CEO, Nichole Stella, said: “We are delighted to be starting our new financial year with these significant new contracts, showcasing rapid progress in the group’s ability to grow its long term revenue base.
“With investment focused on business development, FY23 has proven to be a pivotal year for the group, resulting in excellent visibility of revenues through these multimillion-dollar long term contract wins.”