Altitude Group plc (AIM: ALT), the operator of a leading marketplace for the global promotional products industry, is pleased to announce its unaudited interim results for the 6 months to 30 September 2020. Comparative figures for H1 2019 comprise the reported trading results for the six month period ended 30 June 2019, adjusted for the disposal of Ad Products.
Key corporate developments and operational highlights
· The Group traded profitably in the period by enacting an immediate and effective response to the COVID-19 pandemic and subsequent lockdowns
· Robust performance in H1 resulting in an adjusted operating profit** of £0.3m, despite the impact of COVID-19
· The Group traded within its existing cash resources and remains debt free with a current cash balance of £1.3m as at 22 January 2021. Cash flow is stabilised and reflective of anticipated working capital movement
· AIM membership remains stable with a total of 2,085 members, up from 1,917 at time of acquisition, despite the impact of COVID-19
· Retained 100% participation levels in the Preferred Partner Program despite the impact of COVID-19
· Purchase orders processed through the AIM system have shown progressive improvement to c.70% of original volume expectations since steepest point of COVID-19 decline in April of 2020
· Focus on delivering further growth with high quality distributor partners via AIM Capital Solutions ("ACS") Launched as a premium enhanced member program in August 2019, ACS, provides full system order processing, innovative technology, administrative support and supply chain finance services to members
· Group revenue from continuing operations increased by £1.1m or 36% to £4.4m in the period (H1 2019*: £3.3m)
· AIM US revenues increased to £3.9m (H1 2019*: £2.2m) assisted by the Group Buy programme delivering a US adjusted operating profit of £0.5m (H1 2019*: £0.7m)
· AIM core gross margin maintained at 2019 levels, excluding the Group Buy programme
· Adjusted operating profit** of £0.3m (H1 2019*: £0.6m)
· Total administrative expenses for the period were £3.1m (H1 2019*: £3.4m), including the benefit of £0.4m of Paycheck Protection funding
· Adjusted profit before taxation*** £0.2m (H1 2019*: £0.6m)
· Adjusted basic and diluted earnings from continuing operations per share 0.39p (H1 2019*: 0.86p)
· Statutory loss before taxation £0.6m (H1 2019*: £0.4m)
· Statutory basic and diluted loss from continuing operations per share 0.86p (H1 2019*: 0.64p)
· Cash inflow from continuing operations before changes in working capital was £0.2m (H1 2019*: £0.1m)
· As of 30 September 2020 Group was debt free and had net cash of £1.2m (31 March 2020: £2.4m). At 22 January 2021 the Group's cash resources were £1.3m. Cash inflows are expected to increase over the next three months reflecting the settlement of annual agreements.
* Comparative figures for H1 2019 comprise the reported trading results for the six month period ended 30 June 2019, adjusted for the disposal of Ad Products
** Operating profit before share-based payment charges, amortisation of intangible assets, depreciation of tangible assets and exceptional charges
*** Profit before taxation, share-based payment charges, amortisation of intangible assets, depreciation of tangible assets and exceptional charges
Nichole Stella, Group CEO of Altitude, 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."