ALT Altitude Group Plc

TIDMALT

RNS Number : 1273D

Altitude Group PLC

29 January 2018

ALTITUDE GROUP PLC

(the "Company" or "Altitude")

AIMPro Update

Altitude Group plc (AIM: ALT), the operator of a leading marketplace for personalised products, is pleased to announce the following update in relation to AIMPro and the on-going programme of engagement with and on-boarding of both AI Mastermind ("AIM") members and AIM preferred suppliers. AIMPro is a technology platform which combines the Channl ecommerce technology with Altitude's proprietary full cloud-based CRM and order management system and which is provided free and exclusively to the approximately 1,500 AIM members who have a combined annual revenue throughput of circa $1.3 billion.

AiM members

Altitude are pleased to announce that the on-boarding programme for AIM members has started well and there are currently 7 AIM members, with aggregate annual revenue of $11.2 million already processing orders on the AIMPro platform. Supply partner billing will commence in February 2018.

As planned Altitude attended the Promotional Products Association International (PPAI) Expo in Las Vegas earlier this month where Nichole Stella and her team had the opportunity to meet with and demonstrate the AIMPro platform to more than 200 AIM members. After a highly successful two-day education session, Altitude has signed 57 new AIM members to the AIMPro platform, who together comprise aggregate annual revenues of circa $44 million.

We have a deep understanding of the key drivers of long term success for users migrating to a comprehensive order management system and our clearly defined on-boarding and training process has begun for these 57 AIM members. The Company looks forward to them commencing transactions through the AIMPro tech suite. In addition, a further 88 AIM members are actively engaged with Altitude and we anticipate additional member sign ups to AIMPro in the near future.

Following the success of the PPAI Expo event and the high conversion rate achieved Altitude will be hosting an AIMPro roadshow event in Philadelphia in February 2018 focussed on AIM members who were unable to attend the PPAI Expo. Philadelphia has been chosen as the first venue for our roadshow events as it has a particularly high concentration of AIM members within a 100 mile radius.

AiM suppliers

Altitude continue to select suitable supplier partners to benefit from increased and efficient access to the $1.3 billion AIMPro order pipeline. These suppliers recognize the value of having their products showcased on the platform and foresee the ability to offset transaction fee costs through operational efficiency, the reduction of sales and marketing costs to AIM members and increased exposure across the membership group. The tangible benefit of direct access to AIM members has resulted in Altitude agreeing multiple participation deals whereby the supplier pays for every single order through the platform, both those that are placed online via Channl and offline via the order management system.

Since the start of the calendar year Altitude has agreed terms with a further 12 of the top 25 AIM preferred suppliers, bringing the current total to 14. Altitude anticipate agreeing terms with further suppliers during H1 2018 so as to ensure that the majority of AIM orders are processed through AIMPro. Altitude will derive transaction fees (Gross Transactional Revenue or "GTR") from all of those orders.

Peter Hallett, Executive Chairman,

"We are delighted with the progress we are making in attracting both members and suppliers to the AIMPro platform and we look forward to this translating into revenue throughput on the AIMPro platform in the coming months. In particular we are delighted with the success we have had in engaging with AIM preferred suppliers and their adoption of a model whereby they pay transaction fees on orders generated through AIMPro. This is further validation of AIMPro by the US promotional products industry, as the only free and comprehensive order management system with full ecommerce capability available in the United States".

Enquiries:

 
 Altitude Group plc 
  Peter Hallett, Executive 
  Chairman                            07887 987469 
 
 finnCap ltd                         020 7220 0500 
 Jonny Franklin-Adams (Corporate 
  Finance) 
 Scott Mathieson (Corporate 
  Finance) 
 Richard Chambers (Corporate 
  broking) 
 
 

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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