Altitude Group PLC Major Contract Wins and Trading Update (3859U)
March 28 2023 - 2:00AM
UK Regulatory
TIDMALT
RNS Number : 3859U
Altitude Group PLC
28 March 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Group's obligations under Article 17 of MAR.
Altitude Group plc
("Altitude" or the "Group")
MAJOR CONTRACT WINS AND TRADING UPDATE
Altitude Group Announces Major Contract Wins
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 .
Major contract wins
Altitude continues to grow its footprint across the US via its
Merchanting programmes with the signing of multiple new significant
contracts (the "New Major Contracts") . These multi-year New Major
Contracts will generate an expected total combined gross revenue
value of c.$30m, including $8m signed and subject to State
clearance, throughout their 5-year terms. All New Major Contracts
are expected to begin generating revenue for the Group in the first
half of the next financial year ending March 2024 ("FY24"). The
revenues generated under these New Major Contracts will be in
addition to the $1m gross annualised revenue already expected for
FY24 under existing Adjacent Market Programmes (AMPs)
contracts.
These New Major Contract wins have a material impact on the
Group and demonstrate the success of the Group's investment
throughout this financial year ("FY23") in the development and
growth of its pipeline, yielding positive results across its
Merchanting Programmes.
A number of other major contracts of material value to the Group
are in late-stage legal negotiations.
Merchanting Programmes
Altitude's Merchanting programmes include its AMPs and its AIM
Capital Solutions (ACS) Affiliate programme where the Group acts as
principal in the sale of promotional products.
-- The New Major Contracts sit within the Group's AMPs, where
the Group provides its integrated technology and merchandising
capabilities.
-- Within ACS the Group will enter the new financial year with
an expected annualised run-rate of c. $14m, thus doubling its
annualised run-rate from the prior year (FY23: $7m).
The continued progress Altitude has made within its Merchanting
programmes highlights the potential for continued rapid expansion.
Having invested in platforms, programmes and pipeline development
the Board looks forward to the continued scaling and growth of the
business.
Year End Trading Update
The Group has had a strong close to the year and the Board are
pleased to announce that FY23 Adj EBITDA will be ahead of market
expectations. Furthermore, as a result of the New Major Contracts,
trading in FY24 is expected to start strongly and the Board are
very confident in improving on Altitude's record profitability. We
will provide a further trading update in due course.
Nichole Stella, CEO of Altitude said :
"We are delighted to be starting our new financial year with
these significant new contracts, showcasing rapid progress in the
Group's ability to grow its long-term revenue base. With investment
focused on business development, FY23 has proven to be a pivotal
year for the Group, resulting in excellent visibility of revenues
through these multimillion-dollar long-term contract wins."
Enquiries:
Altitude Group plc Via Zeus
Nichole Stella, Chief Executive Officer
Graham Feltham, Chief Financial Officer
Zeus (Nominated Adviser & Broker) Tel: 0203 829
Dan Bate / David Foreman / James Edis (Investment 5000
Banking)
Dominic King (Corporate Broking)
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END
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