Altitude Group Plc · LSE:ALT
Altitude — H1 2020/21 Earnings Presentation
24 slides from Altitude's earnings presentation, January 2021
Slide 1: 2020 Half Year Results
2020 HALF YEAR RESULTS January 2021
Slide 2: Presentation Team
PRESENTATION TEAM CEO CFO Nichole Stella Graeme Couturier • Experienced career US Promo industry • Previously CFO at Sorted Group, professional a PE backed business in the delivery • 16 years in US Promo Industry with Promo technology space Marketing Media Group; 5 years as • Board level finance pos
Slide 3: About the Industry
About the Industry Nichole Stella Chief Executive Officer 4 | ALTITUDE Nevada Presentation
Slide 4: US Promotional Products Market
US PROMOTIONAL PRODUCTS MARKET Gaining traction in US Market A highly fragmented market USA • Perceived largest player 4Imprint - less than 3% market share • 42% of market (~$9.8bn) conducted by 22,700 distributors with revenues <$2.5m pa* Current market size $23bn* Online share 23% And an inefficie
Slide 5: Promotional Products - Supply Chain Overview
PROMOTIONAL PRODUCTS - SUPPLY CHAIN OVERVIEW Where we add value Altitude Group plc provides a patented technology platform to distributors which has a supply chain already built in and combines an e-commerce trading platform with a cloud based CRM and order management system Manufacturers Suppliers
Slide 6: AIM Smarter Overview
AIM SMARTER OVERVIEW Member Levels Maintained Through Covid-19 AIM MEMBERS AVERAGE MEMBER GROSS REVENUE MEMBERSHIP SALES Reach across all US states & territories and Canada on average 30+ new $2.2 Billion pa members joining per month (2018: $1.7bn) Sales $1mil+ 2019 2021 1,917 Member 2,085 Member Di
Slide 7: AIM Member Revenue – Recovery
AIM MEMBER REVENUE – Recovery 7 | ALTITUDE half year results presentation
Slide 8: AIM Member Revenue – Recovery
AIM MEMBER REVENUE – Recovery Seeing improvement in purchase orders processed through the AIM system have shown progressive improvement to c.70% of original volume expectations since steepest point of COVID-19 decline in April of 2020 8 | ALTITUDE half year results presentation
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS Graeme Couturier Chief Financial Officer 4 | ALTITUDE Nevada Presentation
Slide 10: Financial Highlights: Profitable in the Face of Covid-19
FINANCIAL HIGHLIGHTS Profitable in the Face of Covid-19 • Group revenue from continuing operations increased by £1.1m or 36% to £4.4m in the period (H1 2019*: £3.3m) • AIM US revenues increased to £3.9m (H1 2019*: £2.2m) assisted by the Group Buy programme delivering a US adjusted operating profit o
Slide 11: Financial Highlights: Profitable in the Face of Covid-19
FINANCIAL HIGHLIGHTS Profitable in the Face of Covid-19 • Adjusted basic and diluted earnings from continuing operations per share 0.39p (H1 2019*: 0.86p) $870K • Cash inflow from continuing operations before changes in working capital was £0.2m (H1 2019*: £0.1m) • As of 30 September 2020, Group was
Slide 12: Overview – Business Update
OVERVIEW – BUSINESS UPDATE Nichole Stella Chief Executive Officer 4 | ALTITUDE Nevada Presentation
Slide 13: Operational Highlights
OPERATIONAL HIGHLIGHTS Profitable in the Face of Covid-19 • The Group traded profitably in the period by enacting an immediate and effective response to the COVID-19 pandemic and subsequent lockdowns - www.aimsmarter.com $870K • Robust performance in H1 resulting in an adjusted operating profit** of
Slide 14: Operational Highlights
OPERATIONAL HIGHLIGHTS Profitable in the Face of Covid-19 • Retained 100% participation levels in the Preferred Partner Program despite the impact of COVID-19 $870K • Purchase orders processed through the AIM system have shown progressive improvement to c.70% of original volume expectations since st
Slide 15: COVID Response
COVID Response During Covid-19 lock-downs we took immediate action to remain highly relevant and a trusted partner and resource during the crisis Regardless of the depth of the immediate downturn in March, the acquisition of AIM in 2019 and the $870K rapid efforts made in developing the foundation a
Slide 16: Business Model: Routes to Revenue Growth
BUSINESS MODEL Routes to revenue growth SME Promotional Product Distributors Promotional Product / Apparel Suppliers, Customer SME Promotional Product Distributors Print Brokers, Uniform Distributors Print Suppliers, B2B Business partners • Promote and direct purchasing to these businesses Services
Slide 17: Business Model: Routes to Revenue Growth
BUSINESS MODEL Routes to revenue growth Simplified the Routes to Revenue Growth through Corporate Continuous Improvement & Agile Initiatives: • Continued development of the preferred partner network / drive member purchases through the preferred network $870K • Continued growth in the AIM membership
Slide 18: Financial Review
FINANCIAL REVIEW Graeme Couturier Chief Financial Officer 4 | ALTITUDE Nevada Presentation
Slide 19: Altitude Financials (Unaudited): Income Statement
ALTITUDE FINANCIALS (UNAUDITED) INCOME STATEMENT H1 H1 VARIANCE 2020/21 2019 £m £m £m % REVENUE 4.4 3.3 1.1 33% GROSS PROFIT 2.5 3.0 (0.5) (17%) • Significant revenue growth of 33% to £4.4m Adjusted Operating Costs (2.2) (2.4) 0.2 (8%) (H1 2019: £3.3m) assisted by the Group Buy programme ADJUSTED OP
Slide 20: Altitude Financials (Unaudited): Balance Sheet
ALTITUDE FINANCIALS (UNAUDITED) BALANCE SHEET H1 H1 2020/21 2019 £m £m Tangible assets 1.0 1.1 • Intangible assets comprise acquired customer relationship assets and capitalised Intangible assets 2.7 2.7 software development costs Goodwill 3.0 2.7 Deferred Tax 0.4 0.5 • Increase in goodwill reflects
Slide 21: Altitude Financials (Unaudited): Cashflow Statement
ALTITUDE FINANCIALS (UNAUDITED) CASHFLOW STATEMENT H1 H1 2020/21 2019 VARIANCE £m £m £m LOSS FOR THE PERIOD (0.7) (0.7) 0.0 Amortisation and depreciation 0.5 0.7 (0.2) • Investment in working capital reflects growth in ACS funding Share based payments 0.3 0.4 (0.1) OPERATING CASH INFLOW 0.1 0.4 (0.3
Slide 22: Outlook & Summary
OUTLOOK & SUMMARY Nichole Stella Chief Executive Officer 4 | ALTITUDE Nevada Presentation
Slide 23: Outlook
OUTLOOK “In the face of the most challenging business environment in modern times, the Board is pleased with the resilience, effort and performance of the team and business during the period. Since the acquisition of AIM in 2019, we have worked tirelessly to develop the foundation and strategy of th
Slide 24: Thank You
THANK YOU 27 | ALTITUDE Nevada Presentation