20th May 2016 07:47
LONDON (Alliance News) - Altitude Group PLC on Friday reported an increase in revenue and narrowing of pretax loss in 2015, despite "significant operational disruption" arising from its restructuring.
Altitude provides technology and information services for the promotional, print and clothing industries. The company posted a pretax loss of GBP1.2 million for the year ended December 31, narrowed from GBP1.6 million a year earlier, driven by a 2.1% revenue growth to GBP4.5 million from GBP4.4 million and non-recurring costs falling to GBP729,000 from GBP1.1 million.
Altitude said the improved results came despite "significant" restructuring during the year, after it minimised the number of staff located outside its UK base, moved the control of all its software maintenance and development to the UK and said all changes to the development programme now required board sanction.
The non-recurring costs from 2014 included administrative costs, which were later reclassified as non-recurring and exceptional following the restructuring.
Altitude said this restructuring, which was now complete, removed annualised costs of around GBP1.8 million.
The company said it maintained gross margins at 78.0%, adding that it remained free of bank borrowings, with cash resources of GBP370,000 from GBP1.3 million a year earlier. This, Altitude said, was "sufficient" for its current requirements.
"The group undertook a radical restructuring process during the year including changes to the board and senior management. We are now a much leaner and focused business with clear reporting lines and responsibilities, led by a chief executive with the requisite knowledge and experience to develop our proprietary software applications," Non-Executive Chairman Peter Hallett said.
Altitude in January revealed a string of board changes, resulting in the appointment of a new chairman, chief executive and chief operating officer.
Martin Varley, who was previously the commercial director of the company, was named chief executive, and Peter Hallett, previously a non-executive director, was appointed non-executive chairman. Shaun Parker, who has held senior management positions at companies such as Redstone PLC, Hewlett Packard and Compaq, was named as the company's new chief operating officer.
Shares in Altitude were up 2.3% at 11.00 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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