5th Sep 2019 11:48
(Alliance News) - Altitude Group PLC on Thursday said it expects to record a significant revenue rise for the first half of 2019 but growth has not happened "as quickly as envisaged" and it will fall short of expectations.
Shares in Altitude were down 36% at 58.90 pence in London in late morning trade.
Altitude, a promotional products firm, is forecasting revenue for the six months ended June 30 of GBP5.4 million, 42% above its GBP3.8 million revenue the year before. This included a six-fold rise in US revenue to USD1.9 million in the second quarter, with the US business currently self-funding.
The company bought AIM Smarter, formerly known as AI Mastermind, for USD5 million back in January 2019.
"Despite this rapid growth in the very short post acquisition period, overall revenue has not accelerated as quickly as envisaged by the company. This is primarily due to the scale and complexity of the transition to our new business model," said Altitude.
As a result, revenue in the third and fourth quarters of the year will be below expectations and Altitude expects a delay in time taken "to achieve the forecasted levels".
Chief Executive Nichole Stella said: "The acquisition is proving to be transformational, as underlined by the six-fold increase in Q2 US revenue. Whilst revenues have not advanced as quickly as we had hoped, the investments made into the supplier partner programs, data insights and new member services offering, allow us to look forward with confidence. We have the technology and have successfully built out the necessary team, infrastructure and service offerings to drive a sustainable and growing business far into the future. I remain confident that the potential for the business is greater than originally thought." ????
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