Slide 1: Altitude Group Plc
ALTITUDE Q GROUP PLC
Slide 2: Audited Annual Results for the Year Ended 31 March 2022
altogether Audited Annual Results for the Year Ended 31 March 2022 2
Slide 3: Presentation Team
Presentation Team Audited Annual Results for the Year Ended 31 March 2022 3
Slide 4: Presentation Team: CEO and CFO
Presentation Team CEO CFO Nichole Stella Graham Feltham • 17 years executive level experience in the Promo industry • Qualified FCA with EY in 2000 • Track record of identifying & capitalizing on new revenue sources, launching • Experienced AIM PLC CFO and Board member products/services, and driving
Slide 5: Key Highlights – Financial
Key Highlights – Financial Audited Annual Results for the Year Ended 31 March 2022 5
Slide 6: Key Highlights – Financial
Key Highlights – Financial Group revenues Gross margin £11.9m 51.5% 54.9% (2021: £7.7m) (2021: 72.3%) Anticipated and reflective of blended revenues across the Group Group adjusted Adjusted basic earnings operating profit* per share** £1.1m 1.77p 90.2% (2021: £0.6m) 71.9% (2021: 1.03p) * Operating p
Slide 7: Key Highlights – Financial
Key Highlights – Financial Operating cashflow before Cash balance changes in working capital at year end £1.1m £0.9m 149% (2021: £0.4m) (2021: £2.1m) Cash at 30 June 2022 of £1.6 million • Services revenue grew by 17.3%, surpassing the Industry average of 12.1% reflecting the strong performance of o
Slide 8: Industry we Serve
Industry we Serve Audited Annual Results for the Year Ended 31 March 2022 8
Slide 9: US promotional products market worth over $23 billion
Industry we Serve Post-pandemic, the market for promotional products in the US alone is estimated to be worth more than $23 billion. (Source: ASI) 9
Slide 10: Large but inefficient market, 75% of transactions offline
Industry we Serve It is a large market, but an inefficient one, with approximately 75% of transactions still carried out offline. US Market 10
Slide 11: Fragmented market: 3,000 suppliers and 23,000 distributors
Industry we Serve Additionally, it is very fragmented with approximately 3,000 suppliers and 23,000 distributors serving a very broad customer base, spanning individual consumers to very large corporates and non-profit organisations. US Market 11
Slide 12: Industry we Serve: supply chain
Industry we Serve End Buyer Company/ End User Distributer Sales Supplier Overseas Manufacturer 12
Slide 13: Who are we?
Who are we? Audited Annual Results for the Year Ended 31 March 2022 13
Slide 14: Altitude is a technology company with an industry marketplace
Who are we? Altitude is a technology company and has developed an industry specific marketplace which provides various design tools, applications, and web site pop- up stores for promotional product distributors and suppliers. Tech Suite adoption increased to 476 users 32% 2,646 Unique webstores liv
Slide 15: Scalable e-commerce enabled trading platform
Who are we? We have developed a robust e-commerce enabled and scalable, trading platform that facilitates the execution of both offline and online promotional product transactions. This gives us the ability to generate revenue based on the transactional throughput both inside and outside our platfor
Slide 16: Driving Efficiency with Integrations
Driving Efficiency with Integrations 16 …
Slide 17: Technology, team and services deliver scalable growth
Who are we? The Group’s technology combined with an experienced team and proven service offerings delivers in-industry scalable growth opportunities and expansion into adjacent markets. 17
Slide 18: Two areas: Services and Merchanting
Who are we? We deliver products and services in two distinct areas - Services and Merchanting. Services is comprised of technology and software Our Merchanting programmes include ACS and our applications, membership subscriptions, preferred adjacent market programmes, where the Group now partner pro
Slide 19: Services and Merchanting / How we make money
Services and Merchanting / How we make money Audited Annual Results for the Year Ended 31 March 2022 19
Slide 20: Business Services
Services / How we make money Business Services • Preferred Partner pricing benefits • Freight programs and shipping discounts • Community & networking opportunities • Education & professional development • Expanded marketing services, products and tools How we make money: The Group derives subscript
Slide 21: Preferred Partner Services
Services / How we make money Preferred Partner Services • The Group provides suppliers with services to expand their visibility and sales to the AIM and ACS community • Top level visibility across our marketplace product search engine • Preferred technology integration opportunities • Guaranteed par
Slide 22: Affiliates
Merchanting / How we make money Our Merchanting Programs are focused on operational gearing that drives efficiency and feeds into our Services / Preferred Partner Programs Affiliates • The Group recruits high-caliber sales professionals to affiliate (Affiliates) with the Group • The Group is the pri
Slide 23: Adjacent Markets
Merchanting / How we make money Adjacent Markets • Non-competitive spaces • Integrated E-commerce Driven Technology • Supply chain know how • During the year the Group secured a financing facility of £0.5m to support future growth. To date, this facility remains undrawn. How we make money: The Group
Slide 24: What have we been up to
What have we been up to Audited Annual Results for the Year Ended 31 March 2022 24
Slide 25: What have we been up to
What have we been up to Year ended 31 December 2018 Period ended 31 March 2020 Year ended 31 March 2021 Year ended 31 March 2022 £'millions £'millions £'millions £'millions 12 months 12 months 12 months 15 months 12 months 12 months Foundation Bank Facility Built Obtain Tech Ready Strengthened to Sc
Slide 26: Financials: How we've performed
Financials How we’ve performed Audited Annual Results for the Year Ended 31 March 2022 26
Slide 27: Group Performance
Group Performance 2022 2021 12 Months 12 Months 31-Mar 31-Mar £m £m Variance % change Revenue 11.9 7.7 4.2 55% Gross Profit 6.2 5.6 0.6 10% GP% 52% 72% Overheads (ex central costs) (4.2) (4.3) 0.1 (1%) Adj Op profit 1.9 1.3 0.6 50% Central costs (0.8) (0.7) (0.1) 18% Adj Group Op profit 1.1 0.6 0.5
Slide 28: Segmental performance
Segmental performance Year ended Year ended Year ended 31 March 2022 31 March 2021 Variance Variance £'millions £'millions £'millions % Services Turnover 6.31 5.38 0.93 17% Cost of Sales (0.56) (0.51) (0.05) 10% Gross Profit 5.75 4.87 0.88 18% Gross Profit Margin % 91% 91% Merchanting Turnover 5.63
Slide 29: Financial Position
Financial Position 2022 2021 12 Months 12 Months 31 March 31 March £m £m Variance Total non-current assets 6.44 6.40 0.04 Current assets Inventory 0.03 - 0.03 Trade and other receivables 3.88 2.38 1.50 Corporation Tax Receivable 0.04 0.22 (0.18) Cash and cash equivalents 0.90 2.10 (1.19) Total curre
Slide 30: Cash Performance
Cash Performance 2022 2021 12 Months 12 Months 31 March 31 March £m £m Variance Operating cash flow before changes in working capital 1.07 0.43 0.64 Movement in inventory (0.03) - (0.03) Movement in trade and other receivables (1.40) 0.71 (2.11) Movement in trade and other payables (0.10) (0.71) 0.6
Slide 31: Blue Sky / Market Opportunities
Blue Sky / Market Opportunities Audited Annual Results for the Year Ended 31 March 2022 31
Slide 32: As the market place grows we grow
Blue Sky / Market Opportunities / As the market place grows we grow • Currently, the Group has exceeded pre-covid network numbers with more than 2122 distributors within the North American network, representing nearly 10% of the industry’s distributor companies. • The market is highly fragmented wit
Slide 33: As the market place grows we grow
Blue Sky / Market Opportunities / As the market place grows we grow • E-commerce continues to drive sales activity across the industry. Promotional Products Association International (PPAI) reported on 1 June 2022, “the share of online sales of promotional products was 25.8% in 2021 (up from 17.3% i
Slide 34: Outlook
Outlook Audited Annual Results for the Year Ended 31 March 2022 34
Slide 35: Outlook
Outlook • Preferred Partner service fees tracked 32% over last year demonstrating recovery and gaining momentum into the new financial year • The Group’s Merchanting programmes are expanding and driving new growth within the promotional products industry and adjacent markets • The Group remains debt
Slide 36: Outlook
Outlook “The Group experienced year of strong profitable growth, driven by the commitment of our teams and the quality of our programmes. We are also extremely pleased to see last year’s strong trading momentum has continued into the first quarter of our new financial year providing further confiden
Slide 37: Questions & Discussions
Questions & Discussions Audited Annual Results for the Year Ended 31 March 2022 37