Altitude Group PLC Trading Update & Secured Credit Facility (6785G)
March 31 2022 - 2:00AM
UK Regulatory
TIDMALT
RNS Number : 6785G
Altitude Group PLC
31 March 2022
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 Company's obligations under Article 17 of MAR.
Altitude Group plc
("Altitude", the "Company" or the "Group")
Full Year Trading Update & Secured Credit Facility
Altitude Group plc (AIM: ALT), the operator of the leading
marketplace for the global promotional products industry, provides
a trading update for the financial year to 31 March 2022
("FY2022"). The Board is pleased to report that the Group is
experiencing accelerated recovery post Covid and continues to
successfully navigate the current business climate. The Group has
increased its core business revenue, replacing the GBP1.9m FY2021
of one-off Personal Protective Equipment sales. With strong trading
in FY2022, and key financial metrics tracking ahead of last year,
the Group expects to report FY2022 revenue of c. GBP12.0m
(FY2021:GBP7.7m) and adjusted operating profit * of c. GBP1.0m
(FY2021: GBP0.6m), representing increases of c. 56% and c. 80%
respectively.
*Operating profit before share-based payment charges,
amortisation of intangible assets, depreciation of tangible assets
and exceptional charges
Services
Group services revenue, which is derived from both AIM members
and contracted Preferred Partners, grew in FY2022 by an estimated
20%, from successful delivery of AIM network performance.
Approximately 93% of services revenues are either annual recurring
fixed revenues or repeating ad valorem marketing revenues based on
AIM members transactional volume with contracted Preferred
Partners.
Merchanting
Our merchanting programmes, which includes AIM Capital Solutions
(ACS) acting as principal in the underlying transaction, grew
substantially through the period with revenue of c. GBP5.6m in
FY2022 (GBP2.3m FY2021). We are pleased with the platform that has
been built to support our Merchanting programmes and are poised for
continued growth.
Balance Sheet and Cash
The Group's cash balances and working capital cycle followed the
normal and expected path with working capital requirement reducing
in Q1 22. At 31 March 2022, the Group is expecting to report net
cash excluding IFRS 16 lease liabilities of at least GBP1m.
New Bank Credit Facility
The Group is also pleased to report it has secured a new working
capital credit facility (the "Facility") with TD Bank N.A., with an
initial 12 month revolving facility of $700k. The Facility has no
significant financial covenants and is secured by the assets of the
US Group with a parental guarantee from Altitude. The Facility will
provide access to non-dilutive funding to support the Group in
executing its growth strategy. The Facility has an arrangement fee
of $3,500 annually and incurs interest at 1% above the US Prime
Rate on drawdown. This Facility is expected to remain undrawn at
the year end.
Nichole Stella, Group CEO of Altitude, said:
"We have emerged in the post-pandemic era with positive
momentum. Throughout this difficult period we have shown consistent
and organic revenue growth and we have not needed to raise any
forms of finance, neither equity or debt. It is testament to the
resilience and hard work of our team, our strong supplier
relationships and our market leading customer proposition, that we
are able to report such a positive statement. As such, we are
focused on our strategy to scale the business and are well placed
for accelerated future growth."
Altitude Group plc Via Zeus Capital
Nichole Stella, Chief Executive Officer
Graham Feltham, Chief Financial Officer
Zeus (Nominated Adviser & Broker) Tel: +44 (0) 203
Dan Bate (Investment Banking) 829 5000
David Foreman (Investment Banking)
James Edis (Investment Banking)
Dominic King (Corporate Broking)
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