Trading platform eyes improved results, with momentum continuing into 2024
Altitude Group, the Manchester-based operator of a leading marketplace for the global promotional products industry, said it expects to achieve sizeable increases in revenues and adjusted EBITDA for the year to March 31, 2023, in line with market expectations.
In a pre-close trading update for the financial period, it said it expects to attain a minimum year-on-year increases in revenue of circa 49% and adjusted EBITDA of around 74% when it publishes its results at the end of July.
External market consensus for the 2023 financial year is currently revenue of £17.8m and adjusted EBITDA of £1.9m for the group, which has a Sheffield office.
Trading in the current financial year for 2024 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 the merchanting division and continuing solid performance from the 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 Altitude expects to provide further detail following the successful roll-out of its contracts towards the end of the first half of fiscal year24, being September 2023.
In addition, via the AMPs, the group has become a US 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.
Financial year 2023 cash increased to £1.2m, compared with £900,000 the previous year, and the group has now signed a $1.7m credit facility with TD Bank NA, which is currently undrawn and in place to fund growth in working capital and investment in the merchanting division.
Chief executive, Nichole Stella, said: “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.”