Altitude Group Plc · LSE:ALT
Altitude — FY2024 Earnings Presentation
35 slides from Altitude's earnings presentation, 2024
Slide 1: Audited Annual Results for the Year Ended 31 March 2024
1 Audited Annual Results for the Year Ended 31 March 2024
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Slide 3: Presentation Team
Presentation Team 3 Audited Annual Results for the Year Ended 31 March 2024
Slide 4: Presentation Team
Presentation Team § 19 years executive level experience § Qualified FCA with EY in 2000 in the Promo industry § Experienced AIM PLC CFO and § Track record of identifying & Board member capitalizing on new revenue § Tech, Services, FMCG & sources, launching Manufacturing Industry products/services, a
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Slide 6: Key Highlights – Financial
Key Highlights – Financial Group revenues Gross profit £24.0m £10.4m 33.0%** (2023: £18.8m) 25.1%** (2023: £8.6m) Group adjusted Adjusted basic Cash balance operating profit* earnings per share* at year end £2.4m 2.61p £1.2m 30.2%** (2023: £2.0m) 60.1% (2023: 1.63p) - (2023: 1.2m) *Adjusted for shar
Slide 7: What have we been up to
What have we been up to Sales Gearing for greater efficiency Closing contracts, Selling on campus, Deliver scalability for us 33.0% Promotional Products & customers to drive profitability Distributers & Suppliers Strengthen core relationships Strong financial health Retain & deepen our Build trust &
Slide 8: Who are we?
Who are we? 8 Audited Annual Results for the Year Ended 31 March 2024
Slide 9: Who are we?
Who are we? Altitude is a diversified portfolio Group that is the leading end-to-end solutions provider for branded merchandise across a variety of sectors from the corporate promotional products industry and print vertical markets to the higher-education sector. Ten Year Record: 9 Audited Annual Re
Slide 10: We deliver products and services in two distinct areas
Who are we? We deliver products and services in two distinct areas Services focuses on operating distributor/vendor Merchanting focuses on the sale of promotional networks in the promotional products industry products and includes AIM Capital Solutions (ACS) comprising of technology and software app
Slide 11: Technology is at our core
Who are we? Technology is at our core • Proprietary technology platforms • Product search engines • Order management tools • Design applications • E-commerce sites – Artificial Intelligence (AI) presents great opportunity to deliver new tools to drive efficiency and scale. 11 Audited Annual Results
Slide 12: Markets We Serve
Markets We Serve Corporate & Collegiate 12 Audited Annual Results for the Year Ended 31 March 2024
Slide 13: Industry we Serve - Corporate
Industry we Serve - Corporate The market for promotional products in the US alone is estimated to be worth more than $26.1 billion. (Source: ASI) End Customer 13 Audited Annual Results for the Year Ended 31 March 2024
Slide 14: Industry we Serve - Corporate: US Market
Industry we Serve - Corporate It is highly fragmented with approximately 3,000 suppliers and 23,000 distributors serving a very broad customer base, spanning small businesses to large corporates and non-profit organisations. US Market 14 Audited Annual Results for the Year Ended 31 March 2024
Slide 15: Industry we Serve - Collegiate
Industry we Serve - Collegiate The retail higher-education / collegiate markets is estimated to be valued at $12 billion for 4,000 campuses, with 2 primary legacy competitors, highlighting the great growth opportunity for the disruptive Gear Shops. End Customer 15 Audited Annual Results for the Year
Slide 16: Industries we Serve
Industries we Serve Combined the Group has an addressable market size of nearly $40 billion. End Customer 16
Slide 17: Supply chain
Supply chain Corporate End Customers Collegiate Distributer Sales Members / Affiliates / Gear Shop Supplier Overseas Manufacturer 17 Audited Annual Results for the Year Ended 31 March 2024
Slide 18: How we make money
How we make money 18 Audited Annual Results for the Year Ended 31 March 2024
Slide 19: How we make money – Subscription fees
How we make money • Preferred Partner pricing benefits • Freight programmes and shipping discounts • Community & networking opportunities • Education & professional development • Expanded marketing services, products and tools How we make money: The Group derives subscription fee revenue from provid
Slide 20: How we make money – Service fees
How we make money • Top level visibility across our marketplace product search engine • Preferred technology integration opportunities • Guaranteed participation in publications, catalogues, educational product programmes and merchandise campaigns • Expanded access to AIM community via social media,
Slide 21: How we make money – Procurement sales
How we make money • Enables Affiliates to focus on sales activities, which is their skillset, and to become part of a corporate business driving growth and profitability, which is our skillset, which helps them exceed their stand-alone potential • Full utilisation of technology is both advantageous
Slide 22: How we make money – Gear Shops
How we make money • Provides specialist expertise on branded merchandise with access to full product ranges from our preferred partners • Provides e-commerce, marketing solutions and modern/innovative spaces to drive brand awareness and community engagement • In specialised partnership, seamlessly d
Slide 23: Marywood Case Study
Marywood Case Study Increase in 23 Audited Annual Results for the Year Ended 31 March 2024 6X Apparel sales FY23 to FY24
Slide 24: How we make money – At our core
How we make money At our core • Efficiency – providing an intuitive online ordering experience for buyers coupled with the back-end technology stack to support the quick fulfilment of orders for branded merchandise • Effectiveness – ensuring product / inventory availability whenever and wherever you
Slide 25: What’s new?
What’s new? • Group has experienced disruptive market share growth with 19 campus programmes at 22 locations. • Delivered 13 Gear Shop contracts in FY24 on campuses across the US with our innovative specialty higher-education solution. • 600% Growth! • 7 Gear Shop wins so far since HY24 • Current po
Slide 26: What’s new?
What’s new? • ACS continued to add significant revenue growth, increasing annualised expected revenues in FY24 by 32% to $18m (FY23: $13.6 million). • Significant progress in systems, integrations and processes via the installation of new and innovative technology platforms that will drive greater s
Slide 27: Audited Annual Results for the Year Ended 31 March 2024
27 Audited Annual Results for the Year Ended 31 March 2024
Slide 28: Group Performance
Group Performance FY24 FY23 Change Group revenues £m £m %*** £24.0m Revenue 24.0 18.8 33% Gross Profit 10.4 8.6 25% GP% 43% 46% (3%p) 33.0%*** Adj Op profit before central costs 3.8 3.6 9% (FY23: £18.8m) Adj Group Op profit* 2.4 2.0 30% Basic earnings per share Operating profit 0.1 0.2 (45%) (Loss)
Slide 29: Segmental performance
Segmental performance FY24 FY23 Change £m £m **% Services HY23 Services Turnover 8.69 8.52 5.6% Cost of Sales (0.83) (0.81) (6.2%) revenue Gross Profit 7.86 7.71 5.6% £8.7m Gross Profit Margin % Merchanting Turnover 90% 15.32 90% 10.24 0%p 55.8% 5.6%** Cost of Sales (12.81) (9.35) (42.7%) (FY23: £8.
Slide 30: Cash Performance
Cash Performance FY24 FY23 Change £m £m % Net Cash inflow from Operating cash flow before changes in working capital 2.41 1.96 23% operating activities £2.1m Movement in inventory (0.69) (0.34) 105% Movement in trade and other receivables 0.54 (1.53) 135% Movement in trade and other payables 0.02 1.
Slide 31: Financial Position
Financial Position FY24 FY23 Change £m £m % Total non-current assets 7.23 6.72 8% Net Assets Current assets £10.7m Inventory Trade and other receivables Corporation Tax Receivable 1.04 4.88 0.12 0.36 5.52 0.09 189% (12%) 26% £1.3m (FY23: £9.4m) Cash and cash equivalents 1.22 1.17 4% Total current as
Slide 32: Outlook
Outlook 32 Audited Annual Results for the Year Ended 31 March 2024
Slide 33: Outlook
Outlook ALTITUDE GROUP PLC FY24 was a continuation of the accelerated growth we achieved in FY23, and once again we achieved RECORD-BREAKING RESULTS for the Group. It was a year that required intense focus on delivery in new markets and ensuring continued scale within our core industry. FY25 has sta
Slide 34: Our Aspirations
Our Aspirations We retain our high growth ambitions and are confident in our ability to substantially scale and expand the business. The Management team continues to be focused on scalable growth in the new financial year and accelerated compounding future growth. We are focused delivery and committ
Slide 35: Audited Annual Results for the Year Ended 31 March 2024
35 Audited Annual Results for the Year Ended 31 March 2024