Altitude Group Plc (AIM: ALT), the operator of a leading marketplace for the global promotional products industry, is pleased to provide the following trading update for the first quarter of the current financial year (April, May and June 2021) ("Q1 2021").
The Board is pleased to report that the Group continues to trade positively, and current business performance is in line with the Board's expectations. Despite industry headwinds in Q4 of the financial year ended 31 March 2021, trading remained robust and full year revenue is expected to be not less than £7.4 million, with gross profit expected to be not less than £5.2 million.
The progressive recovery since the initial impact of the global pandemic has continued into Q1 2021 with increasing purchase orders through the AIM platform resulting in our June 2021 order value exceeding both 2019 and 2020 levels. In line with this, the Group has maintained a robust cash balance, with an expected closing balance on 30 June 2021 of £1.4 million.
AIM Capital Solutions ("ACS") systemwide sales and revenue has grown c.125% through Q1 2021. ACS affiliate members are required to process all orders through the AIM platform to participate in the program.
AIM Smarter ("AIM") membership is stable with 2,071 standard members. Throughout the global pandemic period, membership numbers have remained solid reflecting community loyalty and reliance on AIM services.
Revenue from preferred partners on annual revenue agreements for calendar year 2020 are fully settled and in line with management expectations. Additionally, the Group has added 8 new preferred partners during 2021, while maintaining 100% membership of the VIP Preferred Partners. We supported our partners during coronavirus through innovative marketing campaigns and collaborative PPE programs strengthening those key relationships.
The Board continues to be pleased with the resilient trading and liquidity performance of the Group. We remain confident in the strength of the business, are focused on execution, and are well positioned to benefit from continued market recovery. The Group expects to report a profitable adjusted EBITDA for the financial year ended 31 March 2021 in line with Board expectations. We look forward to announcing full year results in September 2021.