Altitude Group Plc · LSE:ALT
Altitude — H1 2025 Earnings Presentation
44 slides from Altitude's earnings presentation, December 2024
Slide 1: Unaudited Interim Results for the Half Year Ended 30 September 2024
1 Audited Annual Unaudited Results Interim for for Results thethe Year Ended Half Year31 March Ended 302024 September 2024
Slide 2: 2
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Slide 3: Presentation Team
Presentation Team 3 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 4: Presentation Team
Presentation Team § 19 years executive level § Qualified FCA with EY in 2000 experience in the Promo § Experienced AIM PLC CFO industry and Board member § Track record of identifying & § Tech, Services, FMCG & capitalizing on new revenue Manufacturing Industry sources, launching experience products/
Slide 5: Key Highlights - Financial
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Slide 6: Key Highlights – Financial
Key Highlights – Financial Group revenues Gross profit £14.2m £5.2m 24.0%* (HY24: £11.8m) 7.9%* (HY24: £4.9m) Group adjusted Basic earnings per share Services revenues operating profit** £1.2m 0.08p 3.5%* Merchanting revenues 35.1%* 13.3%* (HY24: £1.1m) 18.8% (HY24: 0.07p) *At constant currency ** O
Slide 7: Commercial Highlights
Commercial Highlights • Strong performance in • Continued growth in HY25 with an • Annualized run rate revenues marketplace, subscription, additional contract awarded post- increased 19% ($3.4m) to $21.4m and SaaS programs supports November 2024 update. in HY25. Merchanting Division growth. • Eight
Slide 8: What have we been up to
What have we been up to Sales Gearing for greater efficiency Selling to Students & Universities, Deliver scalability for us Promotional Products & customers to drive profitability 24.0% * Distributers & Suppliers Strengthen core relationships Strong financial health Retain & deepen our Build trust &
Slide 9: Who are we?
Who are we? 9 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 10: 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: *At constant curren
Slide 11: 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 12: 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. 12 Unaudited Interim Resul
Slide 13: What’s new?
What’s new? 13 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 14: What’s new?
What’s new? 14 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 15: Industry we Serve
Industry we Serve 15 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 16: US promotional products market worth more than $26.1 billion
Industry we Serve The market for promotional products in the US alone is estimated to be worth more than $26.1 billion. (Source: ASI) End Customer 16 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 17: Our Market
Our Market 17 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 18: Highly fragmented market of suppliers and distributors
Industry we Serve It is highly fragmented with approximately 3,000 suppliers and 22,000 distributors serving a very broad customer base, spanning small businesses to large corporates and non-profit organisations. US Market 18 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 19: Higher-education / collegiate market valued at $12 billion
Industry we Serve The retail higher-education / collegiate markets is estimated to be valued at $12 billion for 4,200 stores, with 2 primary legacy competitors, highlighting the great growth opportunity for the disruptive Gear Shops. End Customer 19 Unaudited Interim Results for the Half Year Ended
Slide 20: The Collegiate Market
The Collegiate Market C$12bn “campus stores” market Collegiate institutions likely to • Addressable c$8-9bn have campus stores c4,200 • Public 1,500 Further addressable • Private 1,800 • Community colleges 900 • Collegiate Athletics market – estimated $5bn Market factors Doing business Traditional s
Slide 21: Addressable market size of nearly $40 billion
Industry we Serve Combined the Group has an addressable market size of nearly $40 billion. End Customer 21
Slide 22: How do we serve?
How do we serve? End Customers Distributer Sales Members / Affiliates / Gear Shop Supplier Overseas Manufacturer 22 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 23: How we make money
How we make money 23 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 24: How we make money
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 25: Merchanting - Gear Shop
Merchanting - Gear Shop • 18 month period of accelerated • Strategic partnerships extended to 4 with estimated annualized growth from 2 locations to • 2 new contracts awarded recently expected average 24 locations revenue of $10m 25 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 26: How we make money
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 27: Merchanting – ACS
Merchanting – ACS • ACS grown 18.8% in • Recruitment pipeline annualised run rate revenues remains strong milestone by $3.4m record with more than to $21.4m from robust $2m invoiced sales recruitment of new in a month affiliates in HY25 27 Unaudited Interim Results for the Half Year Ended 30 Septemb
Slide 28: How we make money
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 29: How we make money
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 30: 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 31: Services/Technology
Services/Technology • Services division increased 3.5% outpacing the • Increased uptake in Tech adoption from strategic industry partnerships and tech starter packages • In the year our US AIM membership grew 2,264 • Enhanced scalability developments (FY24 2,262) the AIM membership represents delive
Slide 32: Financials
Financials 32 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 33: Group Performance
Group Performance Audited 12 months 31 Mar % change HY 2025 HY 2024 *** Group revenue £m 2024 £m £14.2m £m Revenue 14.24 24.00 11.77 24.0% Gross Profit 5.19 10.37 4.92 7.9% 24%*** GP% 36.5% 43.2% 41.8% (HY24: £11.8m) Adj Op profit before central costs 1.84 3.77 1.81 4.4% Basic earnings Adj Group Op
Slide 34: Segmental performance
Segmental performance Audited 12 months HY % HY 31 Mar change 2024 2025 2024 ** £m £m £m HY25 Services Services revenue Turnover 4.17 8.69 4.12 3.5% £4.2m Cost of Sales (0.48) (0.83) (0.31) 56.5% Gross Profit 3.69 7.86 3.81 0.8% Gross Profit Margin % 88.5% 90.5% 92.4% Merchanting 3.5%** Turnover 10.
Slide 35: Cash Performance
Cash Performance Audited 12 months HY 2025 31 Mar 2024 HY 2024 £m £m £m Investment in Working Capital and Capex Operating cash flow before changes in working capital 1.15 2.41 1.06 £2.74m Movement in inventory (0.49) (0.69) (0.67) Movement in trade and other receivables (2.25) 0.54 (0.22) Movement i
Slide 36: Financial Position
Financial Position Audited 12 months HY 2025 31 Mar 2024 HY 2024 £m £m £m Net Assets Total non-current assets 7.24 7.23 7.05 £10.48m Current assets Inventory Trade and other receivables 1.46 6.66 1.04 4.88 1.05 5.65 £0.59m (HY24: £9.89m) Corporation Tax Receivable 0.17 0.12 0.22 Cash and cash equiva
Slide 37: Outlook
Outlook 37 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 38: Outlook
Outlook 38 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 39: 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 40: Thank you
Thank you 40 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 41: Unaudited Interim Results
| UWAUDITED INTERIEW USILIS 4 ALTITUDE od alt GROUP PLC
Slide 42: Unaudited Interim Results for the Half Year Ended 30 September 2024
2024 42 Unaudited Interim Results for the Half Year Ended 30 September 2024
Slide 43: Corporate Social Responsibility
Corporate Social Responsibility Environmental Sustainability: The Group’s ecological footprint Ethical Business Practices: We improved user is low and we eliminate paper with our digital first approach. accessibility on our commercial websites by integrating Our new working practices reduce travel a
Slide 44: Driving Efficiency with Integrations
Driving Efficiency with Integrations 44 Unaudited Interim Results for the Half Year Ended 30 September 2024