Altitude Group plc Trading Update

Altitude Group plc Trading Update

Altitude Group plc, the provider of information and technology services to the promotional products industry, provides the following trading update.

Highlights

  • Disposal of the Promotional Products Division ("PPD") to MBO team for £6.27m (mixture of cash and debt) in June 2011
  • Acquisition and integration of "Technologo" in March 2011 and "The Logo Network" in May 2011
  • Established US Sales and Support facility
  • US customer base growing strongly
  • The Company remains net debt free with a strong balance sheet

Trading Update
Following the disposal of the PPD, Altitude became an Information and Technology business under the Trade Only brand, which consists of Trade Only Limited in the UK, Trade Only Inc. in the USA and Trade Only Technology Services Ltd in Canada.
 
The Company's primary focus is now on the launch of its integrated cloud-based business management system for the promotional products industry, scheduled for the last quarter of 2011 in both the US and the UK. The response to the user experience and depth of functionality has been ahead of our expectations. In advance of the launch we have signed up over 800 users to our Trade Only products system in the USA.
 
In the UK, all Trade Only Limited customers have been offered the opportunity to migrate to the Cloud version when the product is launched and to enjoy the benefits of the lower total cost of ownership.
 
Trade Only National Show
The 2011 TONS was our most successful ever with almost 3,000 visitors, 20% up on 2010. The 3 regional APG (Advertising Product Group) shows had over 500 visitors in total and the Spring Show had over 600, and bookings for 2012 are already at 90% of capacity.
 
Trade Only has reached an agreement with Promotional Product Service Institute Germany  (PSI), a division of Reed Elsevier Plc, to integrate a large pavilion specifically for PSI supplier members to exhibit at the 2012 TONS being held in Coventry. This will add an extra 3,000 sq m of space to the show, and alongside the addition of the new Ibex Halls and the Trade Only Vision Bar, the 2012 show will have 30% more floor space than 2011.
 
New US Head Office
In the US, Trade Only Inc. recently opened its Head Office located in Anaheim Hills, California. The office was opened shortly after Trade Only's acquisition of The Logo Network ("Logo Network"), a leader in the provision of web sites specifically developed for the promotional products industry. Logo Network customers are now being provided options to migrate to the Trade Only tools and services.
 
Notice of results
The Company will report its interim results for the period to 30 June 2011 on Thursday, 22 September 2011. The management team will host a briefing for analysts at the offices of Walbrook PR, 4 Lombard Street, London EC3V 9HD at 9.30am on the day. Analysts who wish to attend should contact Jack Rich on 020 7933 8788 or email [email protected]
 
Colin Cooke, Chairman of Altitude Group, said: "We are delighted to report that the Company continues to grow and develop in line with management's expectations. The disposal of the PPD marks a key turning point in the growth of Altitude Group, and we believe that Trade Only will go from strength to strength, not only here in the UK but also in the US, where there is significant potential."

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