30th Sep 2019 10:22
(Alliance News) - Shares in Altitude Group PLC gained height on Monday as it swung to an adjusted operating profit on double-digit revenue growth in the first half of 2019.
Shares in the personalised products marketplace operator were 28% higher at 54.26 pence on Monday.
For the six months to the end of June, Altitude reported a pretax loss of GBP980,000, widened from GBP732,000 the year before.
This was due to higher administrative expenses at GBP4.6 million from GBP2.8 million the year before. The group's operating loss was GBP900,000, widened from GBP732,000.
However on an adjusted basis, which excludes share-based payment charges, depreciation, amortisation and exceptional items, Altitude's operating profit was GBP254,000, compared to a loss of GBP312,000 a year before.
Revenue for the period was GBP5.9 million, up 43% from GBP3.8 million a year before. Altitude benefited from a GBP1.9 million contribution from AIM Smarter, acquired in mid-January for USD5.0 million.
AIM Smarter was formally known as AI Mastermind, the membership-based trade group of promotional products distributor Advertising Industry Mastermind Group LLC.
Looking ahead, Altitude said it remains confident, with its US business now profitable and cash generative following the integration of AIM Smarter.
"Whilst the pace of revenue growth in the early phases was slower than anticipated, we have an immense opportunity and the US business is now profitable and cash generative. We will continue to see growth in members, suppliers and take up of enhanced packages. The board is confident that the potential for Altitude is significant, and that the acquisition of AIM is transformative for the group," said Chief Executive Officer Nichole Stella.
By Dayo Laniyan; [email protected]
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