Altitude Group Plc · LSE:ALT
Altitude — FY2025 Earnings Presentation
29 slides from Altitude's earnings presentation, 2025
Slide 1: Audited Annual Results for the Year Ended 31 March 2025
Audited Annual Results for the Year Ended 31 March 2025 1
Slide 2: WELCZSIE
WELCZSIE fe Z
Slide 3: Key highlights | Financial
Key highlights | Financial Group adjusted Group revenues Gross Profit operating profit* $37.3m $14.2m $3.7m 23.5% 8.6% 20.7% (2024: $30.2 million) (2024: $13.0 million) (2024: $3.0 million) Adjusted basic Cash balance earnings per share at year end 2.24c $0.7m 10.9% (2024: $1.5 million) (restated 20
Slide 4: 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. 4
Slide 5: We deliver products and services in two distinct areas
Who are we We deliver products and services in two distinct areas SERVICES MERCHANTING Services are derived from Our Merchanting programmes operating distributor/vendor focus on the sale of promotional networks in the promotional products and includes AIM products industry comprising Capital Solutio
Slide 6: 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 significant potential across our portfolio, with the AIM Tech Suite at the forefront of this evolution, by im
Slide 7: What have we been up to
What have we been up to Sales Gearing for greater Closing contracts, Selling on efficiency campus, Promotional Products Deliver scalability for us & Distributers & Suppliers customers to drive profitability Strong financial health Strengthen core Build trust & track record relationships for future g
Slide 8: Markets We Serve
Markets We Serve N\) Corporate & Collegiate ae ALTITUDE L ve GROUP PLC
Slide 9: Industry we serve | Corporate
Industry we serve | Corporate The market for promotional products in the US alone is estimated to be worth $27.8 billion. 9
Slide 10: Industry we serve | Collegiate
Industry we serve | Collegiate The retail higher-education and collegiate markets are estimated to be valued at $12 billion across 4,000 campuses, currently served by two primary legacy competitors. This represents a sizeable and established market where Gear Shops is assessing opportunities for exp
Slide 11: Combined addressable market of nearly $40 billion
Industry we serve Together, these core sectors represent a combined addressable market of nearly $40 billion. 22,000 3,000 Distributors Suppliers $27.8 $12.0 Billion Billion 11
Slide 12: How we make money
How we make money ALTITUDE (@} GROUP PLC 12
Slide 13: Services and Merchanting divisions overview
rs 1 a\poe i $26.1 BILLION sun | $12.0 BILLION ¢£ ) { = ] CORPORATE MARKET vad | COLLEGIATE MARKET we = ; ne) z z — g 2 5 2 Fs aim acs 2 _ F SERVICES DIVISION MERCHANTING DIVISION S 1 if > 3 Alt as g tl —~ = 2 PREFERRED ’ 4 SUPPLY PARTNERS, & TECHNOLOGY IS AT OUR CORE 13
Slide 14: How we make money: Subscription fees
How we make money Preferred Partner pricing benefits HOW WE MAKE MONEY Freight programmes and shipping discounts Community and networking opportunities The Group derives subscription fee revenue from providing a broad Education and professional development range of services to distributors Expanded
Slide 15: How we make money: Services fees
How we make money Top level visibility across our marketplace HOW WE MAKE MONEY product search engine Preferred technology integration opportunities The Group derives revenue Guaranteed participation in publications, through gross transaction fees on catalogues, educational product orders through ou
Slide 16: How we make money: Drop-ship sales model
How we make money Enables Affiliates to focus on sales activities, which is their HOW WE MAKE MONEY skillset, and to become part of a corporate business driving growth and profitability, which is our skillset, which helps The Group derives revenue from the them exceed their stand-alone potential sal
Slide 17: How we make money: Procurement sales
How we make money Provide specialist expertise on branded HOW WE MAKE MONEY merchandise and graduation regalia with quick access to full product ranges from our Preferred The Group derives revenue from Partners, laptops and other technology accessories, long-term contracts that require non-textbooks
Slide 18: How we make money: SaaS subscription fees
How we make money Efficiency – providing an intuitive online ordering experience for HOW WE MAKE MONEY buyers coupled with the back-end technology stack to support the quick fulfilment of orders for branded merchandise The Group derives SaaS technology Effectiveness – ensuring product / inventory av
Slide 19: Financials
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Slide 20: Group performance
Group performance FY25 FY24* Change $m $m **% Revenue 37.3 30.2 23.4% Group revenues $37.3m Gross Profit 14.2 13.0 8.5% GP% 38.0% 43.2% 23.4%** Adj Op profit before central costs 5.4 4.7 14.2% (2024: $30.2m) Adj Group Op profit*** 3.7 3.0 20.7% Basic earnings Operating profit 0.6 0.1 397.7% per shar
Slide 21: Segmental performance
Segmental performance FY25 FY24* Change $m $m **% FY25 Merchanting Services revenue Turnover 10.6 10.9 (3.6%) $26.7m Cost of Sales (1.3) (1.0) (25.0%) Gross Profit 9.3 9.9 (6.6%) Gross Profit Margin % 87.6% 90.5% 38.8%** Merchanting (2024: $19.3m) Turnover 26.7 19.3 38.8% Cost of Sales (21.8) (16.1)
Slide 22: Financial Position
Financial Position FY25 FY24* Change $m $m % Total non-current assets 10.8 9.1 17.8% Net Assets Current assets $15.2m Inventory Trade and other receivables 2.5 7.7 1.3 6.2 90.1% 25.3% 13.2% Corporation Tax Receivable 0.1 0.1 (40.3%) (2024: $13.5m) Cash and cash equivalents 0.7 1.5 (56.1%) Total curr
Slide 23: Cash Performance
Cash Performance FY25 FY24* Change $m $m % Net Cash flow from Operating cash flow before changes in working capital 3.7 3.0 22.6% operating activities Movement in inventory (1.2) (0.9) 36.2% $2.0m Movement in trade and other receivables (1.7) 0.5 (470.5%) Movement in trade and other payables 1.5 0.2
Slide 24: Outlook
Outlook 24
Slide 25: FY25 - Significant Governance Changes
FY25 - Significant Governance Changes These changes provide an opportunity to foster an open culture, broaden executive empowerment and sharpen accountability. David Smith’s Graham Feltham’s Alexander Brennan steps into Deborah Wilkinson’s Drew Whibley joined Altitude term as term as Chief Executive
Slide 26: Strategic priorities
Strategic priorities Margin accretion and cash generation will receive greater prominence, supported by minimum free-cash-flow targets and a rigorous process for prioritising and allocating capitalised software investment. Technology investment will focus on AI-enabled Significant growth in enhancem
Slide 27: Shareholder value
Shareholder value Management intends to balance investment in growth with cash retention and to communicate clear margin targets to the market. A critical review of capital expenditure, software development intensity and working-capital disciplines is already in train. Whilst we cannot influence the
Slide 28: Outlook
Outlook Current trading remains in line with expectations, and the Board is excited by the opportunity ahead for the Group. Altitude has a clear focus on profitable growth in FY26, empowered by a motivated and knowledgeable senior leadership team that have the skills, determination and dedication to
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