Slide 1: Unaudited Interim Results for the Half Year Ended 30 September 2023
1 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 2: Delivery and Execution
Unaudited interim Results – HY24 Delivery and Execution 2 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 3: Presentation Team
Presentation Team Nichole & Graham 3 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 4: Presentation Team: CEO and CFO
Presentation Team CEO CFO Nichole Stella Graham Feltham • 18 years executive level experience in the Promo industry • Qualified FCA with EY in 2000 • Track record of identifying & capitalizing on new revenue sources, • Experienced AIM PLC CFO and Board member launching products/services, and driving
Slide 5: Driving the business forward at pace
Key Highlights - Financial Driving the business forward at pace 5 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 6: Key Highlights – Financial
Key Highlights – Financial Group revenues Gross profit £11.8m £4.9m 53.5% (HY23: £7.7m) 24.8% (HY23: £3.9m) Group adjusted Adjusted basic and diluted Net Assets operating profit* earnings per share** £1.1m 0.71p £9.9m 38.8% (HY23: £0.8m) 61.4% (HY23: 0.44p) £0.5m (FY23: 9.4m) *Adjusted for share-bas
Slide 7: What's new?
Services What’s new? Merchanting • Delivered all new AMPs contracts with required structure to support future growth FY22 HY24 • Growth in Revenue Revenue • ACS Affiliates driven by organic growth and Affiliate recruitment • Services from AIM members and VIP Vendors • Future opportunities across Mer
Slide 8: Big growth opportunities
Industry we Serve Big growth opportunities 8 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 9: US promotional products market worth more than $25.8 billion
Industry we Serve The market for promotional products in the US alone is estimated to be worth more than $25.8 billion. (Source: ASI) End Customer 9 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 10: Highly fragmented US market
Industry we Serve 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 10 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 11: Retail higher-education market valued at $12 billion
Industry we Serve The retail higher-education / collegiate markets is estimated to be valued at $12 billion, with 2 primary legacy competitors, providing the disruptive Gear Shops great growth opportunity. End Customer 11 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 12: Addressable market of nearly $40 billion
Industry we Serve Combined the Group has an addressable market size of nearly $40billion. End Customer 12 Audited Annual Results for the Year Ended 31 March 2023
Slide 13: How do we serve?
How do we serve? End Customers Distributer Sales Members / Affiliates / Gear Shop Supplier Overseas Manufacturer 13 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 14: Market size and context
Market size and context Estimated Market Annual 1% of smaller addressable profile market market contract wins Market $12,000,000,000 $2,400,000,000* $20,250,000 Colleges & Universities 4,000 800 27 Average Store $3,000,000 $3,000,000 $750,000 Enrolment 19,400,000 3,880,000 200,000 Per Student $619 $
Slide 15: Diversified portfolio Group
Who are we? Diversified portfolio Group 15 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 16: 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: 16 Unaudited Interi
Slide 17: Two distinct areas: Services and Merchanting
Who are we? We deliver products and services in two distinct areas Services focuses on operating distributor/vendor networks Merchanting focuses on the sale of promotional in the promotional products industry comprising of products and includes our Affiliates and Adjacent technology and software app
Slide 18: Technology is at our core
Who are we? Technology is at our core • Proprietary platforms • Product search engines • Order management tools • Design applications • E-commerce – Artificial Intelligence (AI) presents great opportunity to deliver new tools to drive efficiency and scale. 18 Unaudited Interim Results for the Half Y
Slide 19: Efficiency & Scale
How we make money Efficiency & Scale 19 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 20: 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 21: 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 22: 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 23: How we make money: Procurement sales (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 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: Expansion & Innovation
What have we been up to Expansion & Innovation 25 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 26: What have we been up to
What have we been up to 53.5% £11.8m Strong financial health Gearing for greater efficiency (HY23: £7.7m) Build trust & track record for Deliver scalability for us & future growth customers to drive profitability Investment in great people Strengthen core relationships Build talent & teams geared Re
Slide 27: What's new?
What’s new? Pipeline, partnerships & priorities Growing ACS Affiliate model - Merchanting • AMPs - off to a flying start • Delivered 10% ACS affiliate growth • Extend AIM partnerships to reach $15m • Systems and automation • Organic growth of c13% from • Operational gearing focus existing affiliates
Slide 28: What's new? Campus stores expansion
What’s new? Campus stores expansion Kern, California ACU, Texas St. John Fisher University, New York 28 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 29: What's new? Campus stores expansion
What’s new? Campus stores expansion 29 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 30: A Selection of Our Brand Partners
A Selection of Our Brand Partners 30 Unaudited interim Results – HY24
Slide 31: Financials: How we've performed
Financials How we’ve performed 31 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 32: Group Performance
Group Performance Unaudited Audited Unaudited 6 months 12 months 6 months Group revenues 30 Sep 2023 £’000 31 Mar 2023 £’000 30 Sep 2022 £’000 £11.8m Revenue 11.8 18.8 7.7 Gross Profit 4.9 8.6 3.9 GP% 41.8% 45.9% 51.5% 53.5% (HY23: £7.7m) Operating profit before share based payment charges, 1.1 2.0
Slide 33: Segmental performance
Segmental performance HY24 FY23 HY23 £’000 £’000 £’000 Services Turnover 4.12 8.52 3.85 HY23 Services Cost of Sales (0.31) (0.80) (0.25) revenue £4.12m Gross Profit 3.81 7.72 3.60 Gross Profit Margin % 92.5% 90.6% 93.5% Merchanting Turnover 7.65 10.23 3.82 7.0% (HY23: £3.85m) Cost of Sales (6.53) (9
Slide 34: Cash Performance
Cash Performance Unaudited Audited Unaudited 6 months 12 months 6 months 30 Sep 2023 30 Sep 2022 Investment in Working £’000 31 Mar 2023 £’000 £’000 capital and Capex £1.8m Operating cash flow before changes in working capital 1,059 1,957 763 Movement in inventory (669) (339) (55) Movement in trade
Slide 35: Financial Position
Financial Position Unaudited Audited Unaudited 6 months 12 months 6 months 30 Sep 2023 31 Mar 2023 30 Sep 2022 £’000 £’000 £’000 Non-current assets Net Assets Property, plant & equipment 266 202 137 £9.89m Right of use assets 437 471 667 Goodwill & Intangibles 5,945 5,586 3,219 Deferred tax 400 458
Slide 36: Outlook: Build on strength
Outlook Build on strength 36 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 37: Outlook
Outlook “The first half of our current financial year has been a period of intense focus and hard work, achieving significant expansion for the Group. I am very proud of the team and their continued attention to growth and delivery. This continuous upward momentum and successful entry into new verti
Slide 38: Questions & Discussions
Thank you Questions & Discussions 38 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 39: Appendix
Unaudited Interim Results Appendix 39 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 40: Social Responsibility
Social Responsibility We recognise the importance of social responsibility and strive to make a positive impact on the communities and environments in which we operate. Our initiatives are guided by the following principles: Prioritize Employee Well-being: Healthy work environment / work-life balanc
Slide 41: Driving Efficiency with Integrations
Driving Efficiency with Integrations 41 Unaudited Interim Results for the Half Year Ended 30 September 2023
Slide 42: Additional adjacent markets in promotional product sales
Industry we Serve Additional adjacent markets that are active in promotional product sales such as; Signage Uniform Print $10.6 $12 $78.9 billion billion billion 42 Unaudited Interim Results for the Half Year Ended 30 September 2023