28th May 2014 08:11
LONDON (Alliance News) - Altitude Group PLC Wednesday expressed confidence in its future in the wake of the strategic shifts it made in 2013, saying it had started its new financial year ahead of expectations.
Altitude said that 2013 had been "a year of significant change", as it had established a new management structure, invested in its core technology, strengthened its resources and improve the visibility of its long term funding.
The information and technology services company posted a pretax loss of GBP1.9 million, widened from a loss of GBP688,000 in 2012. Revenue rose slightly to GBP4.2 million, from GBP4.1 million, but this was offset by higher administrative costs and exceptional costs of GBP767,000.
After the year end, the company entered a deal on the redemption of a loan note outstanding from the sale of its promotional marketing division in 2011, from which it will receive GBP2 million by the end of June. However, it agreed to a GBP400,000 reduction on the note in order to secure the deal, which it wrote down as an impairment charge.
Other exceptional costs included GBP268,000 relating to the resolution of a legal dispute with a competitor in the US.
The company established new management structure in the fourth quarter of the year, restructuring into core geographical sales and service operation, and creating a separate technology development team. Altitude has established an innovation segment to work on a small number of product and customer facing projects to identify investments that will then be allocated to existing businesses when proven.
It invested over GBP1 million in 2013 into its core technology offerings, and said it will invest further in 2014, including investments in patent protection.
The company's Technologo business saw revenues rise 20% during the year as the company upgraded existing software offerings and hired a vice president of sales. The company produced a new HTML5 online design software called 'Artwork Tool' which is currently already in use by some of its customers. It expects to release the product to the general market by the end of 2014.
The company continued to make steady progress in the US, doubling its customer base. In the early part of 2014 it has signed new contracts with multi-user companies.
In the UK, Altitude's technology, publications and exhibitions businesses performed well, particularly seeing strong growth in its publications as industry magazine PPD increased its releases to a monthly output.
"The group has demonstrated its ability to adapt to significant change in 2013," said Chief Executive Stephen Yapp in a statement. "These changes, together with a good cash position and the continued investment in our people alongside our product and technology offering, will enable the group to innovate and meet our customers' evolving needs."
Shares in Altitude were trading up 20% at 13.50 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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