25th Sep 2018 10:42
LONDON (Alliance News) - Shares in Altitude Group PLC dropped on Tuesday as it swung to a loss for the first half of 2018 as costs rose in spite of slight revenue growth.
Shares in the personalised products marketplace operator fell 20% to 73.98 pence on Tuesday.
For the six months to the end of June, Altitude reported a pretax loss of GBP736,000, sinking from a profit of GBP494,000 the year before, due to a rise in administrative costs to GBP2.8 million from GBP1.7 million.
The rise in costs came from investment in the US and incremental costs from a full six months of AdProducts.com Ltd, acquired in June 2017.
However, it was also due to this full six months from AdProducts which allowed growth in revenue to GBP3.8 million from GBP3.0 million.
"Altitude has gained significant traction in revenue throughput across AIMPro since launch and we look forward to reporting further strong progress in the months ahead. Monetisation of throughput in the period has been slower than anticipated, this has been due to relevant timing of supplier agreements and subsequent data updates (which are now resolved), and while it will impact revenue and profit expectations in the current year the board continues to be very confident, given the KPI metrics, in the potential of the business," said Chief Executive Nichole Stella.
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