Altitude Group Plc · LSE:ALT
Altitude — H1 FY2023 Earnings Presentation
37 slides from Altitude's earnings presentation, December 2022
Slide 1: Altitude Group Plc
ALTITUDE GROUP PLC
Slide 2: Unaudited Interim Results for the Six Months Ended 30 September 2022
altogether Unaudited Interim Results for the Six Months Ended 30 September 2022 2
Slide 3: Presentation Team
Presentation Team Unaudited Interim Results for the Six Months Ended 30 September 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 • Experienced AIM PLC CEO and board member • Experienced AIM PLC CFO and Board member • Track record of identifying & capitalizing on new revenue source
Slide 5: Key Highlights – Financial
Key Highlights – Financial Unaudited Interim Results for the Six Months Ended 30 September 2022 5
Slide 6: Key Highlights – Financial
Key Highlights – Financial Group revenues Gross profit* £7.7m £3.9m 29.3% (HY22: £5.9m) 39.5% (HY22: £2.8m) Gross Margin 3.7% to 51.4% (HY22: 47.7%) Group adjusted Adjusted basic earnings operating profit* per share** £0.76m 0.44p 50.5% (HY22: £0.51m) 145% (HY22: 0.18p) * Operating profit before sha
Slide 7: Key Highlights – Financial
Key Highlights – Financial Revenue Group revenue grew by Services revenue grew by Merchanting revenue grew by 29.3% 36.5% 22.8% £7.7m (HY22: £5.9m) reflecting the strong performance of our c.$6m annualised new signings and onboarding of AIM network (24.9% @constant currency) high-quality affiliates
Slide 8: Industry we Serve
Industry we Serve Unaudited Interim Results for the Six Months Ended 30 September 2022 8
Slide 9: US promotional products market worth more than $23 billion
Industry we Serve Most recent reports state 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
Industry we Serve End Buyer Company/ End User Distributer Sales (Members and Affiliates) Supplier Overseas Manufacturer 12
Slide 13: Who are we?
Who are we? Unaudited Interim Results for the Six Months Ended 30 September 2022 13
Slide 14: Altitude is a technology company
Who are we? Altitude is a technology company. We’ve combined our tech with an experienced team and proven service offerings delivers in- industry scalable growth opportunities and expansion into adjacent markets. 14
Slide 15: Products and services: 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 our affiliate programme, applications, membership subscriptions, preferred AIM Capital Solutions (ACS) and our adjacent m
Slide 16: Services and Merchanting / How we make money
Services and Merchanting / How we make money Unaudited Interim Results for the Six Months Ended 30 September 2022 16
Slide 17: Services / How we make money: 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 • Access to Products and Services via technolo
Slide 18: Services: 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 19: Merchanting: 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 20: Merchanting: Adjacent Markets
Merchanting / How we make money Adjacent Markets • Non-competitive spaces • Integrated E-commerce Driven Technology • Supply chain know how • The Group’s financing facility of £0.5m remains undrawn. This was put into place to support future growth. How we make money: The Group derives revenue from t
Slide 21: Our tech stack is built and agile
Who are we? Our tech stack is built and our teams work within an agile environment making feature improvements for our industry specific marketplace which provides various design tools, applications, and web site pop-up stores for promotional product distributors and suppliers. Tech Suite adoption i
Slide 22: Driving Efficiency with Integrations
Driving Efficiency with Integrations 22
Slide 23: Technology: How our tech supports our growth
Technology…. How our tech supports our growth 23
Slide 24: What have we been up to
What have we been up to Unaudited Interim Results for the Six Months Ended 30 September 2022 24
Slide 25: What have we been up to
What have we been up to Period ended Year ended 31 March 2021 Year ended 31 March 2022 Period ended 31 March 2020 £'millions £'millions 31 March 2022 £'millions 12 months 12 months £'millions 15 months 12 months 12months 6 months Gearing Foundation for Greater Built Efficiency From Ready More Featur
Slide 26: Financials: How we've performed
Financials How we’ve performed Unaudited Interim Results for the Six Months Ended 30 September 2022 26
Slide 27: Group Performance
Group Performance Audited 12 months HY23 31 Mar 2022 HY22 £m £m £m Revenue 7.7 11.9 5.9 Group revenues £7.7m Gross Profit 3.9 6.2 2.8 GP% 51% 48% Overheads (ex central costs) (2.4) (4.2) (1.7) Adj Op profit before central costs 1.5 1.9 1.2 29.3% (HY22: £5.9m) Central costs (0.7) (0.8) (0.7) Adj Grou
Slide 28: Segmental performance
Segmental performance Audited 12 months HY23 31 Mar 22 HY22 £m £m £m Services HY23 Services Turnover 3.85 6.31 2.82 revenue Cost of Sales (0.25) (0.56) (0.22) £3.85m Gross Profit Gross Profit Margin % Merchanting 3.60 93.5% 5.75 91.1% 2.60 92.3% 36.5% (HY22: £2.82m) Turnover 3.82 5.63 3.11 Cost of S
Slide 29: Financial Position
Financial Position Audited 12 Months HY23 31-Mar-22 HY22 £m £m £m Total non-current assets 7.10 6.44 6.36 Net Assets Current assets £9.49m Inventory Trade and other receivables 0.09 4.65 0.03 3.88 0.02 3.79 £1.38m (HY22: £8.11m) Corporation Tax Receivable 0.06 0.04 0.15 Cash and cash equivalents 0.8
Slide 30: Cash Performance
Cash Performance Audited 12 Months HY23 31 Mar 22 HY22 £m £m £m Net Cash inflow from Operating cash flow before changes in working capital 0.76 1.07 0.51 operating activities £0.37m Movement in inventory (0.06) (0.03) (0.02) Movement in trade and other receivables (0.17) (1.40) (1.42) Movement in tr
Slide 31: Outlook
Outlook Unaudited Interim Results for the Six Months Ended 30 September 2022 31
Slide 32: Outlook
Outlook • The Group experienced a robust performance across key Services and Merchanting programmes showing significant growth on the same period last year. • Strong, consistent, and upward momentum in the performance of the business in both revenue and profit growth demonstrates the Group’s ability
Slide 33: Outlook: CEO statement
Outlook “In the first six-months of the current financial year, the Group experienced a robust performance across key Services and Merchanting programmes, showing significant growth on the same period last year. The continued strong, consistent, and upward momentum in the performance of the business
Slide 34: Questions & Discussions
Questions & Discussions Unaudited Interim Results for the Six Months Ended 30 September 2022 34
Slide 35: Blue Sky / Market Opportunities
Blue Sky / Market Opportunities Unaudited Interim Results for the Six Months Ended 30 September 2022 35
Slide 36: 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 37: 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