In This Article:
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Revenue: Increased by 33% to GBP24 million.
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Gross Profit: Increased by 25% to GBP10.4 million.
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Adjusted Operating Profit: Increased by 30% to GBP2.4 million.
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Adjusted Basic Earnings Per Share: Increased by 60% to 2.61p.
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Cash Balance: Remained at GBP1.2 million at year-end.
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Merchanting Revenue: Grew by 55.8% to GBP15.3 million.
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Services Revenue: Increased by 5.6% to GBP8.7 million.
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Gross Margin: Decreased by 3 percentage points to 43%.
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Net Income: Earnings per share increased by 78% to 0.98p.
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Gear Shop Growth: 600% growth in Gear Shop sales.
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Affiliate Program Revenue: Increased annualized expected revenues by 32% to GBP18 million.
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Facility Increase: Main facility doubled from $1.5 million to $3 million.
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Net Asset Position: Grew by 13%.
Release Date: July 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Altitude Group PLC (FRA:D9E) reported a 33% increase in revenues to GBP24 million for the year.
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The company's gross profit increased by 25% to GBP10.4 million.
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Adjusted operating profit exceeded market expectations, rising by 30% to GBP2.4 million.
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Adjusted basic earnings per share saw a significant increase of 60% to 2.61p.
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The company maintained a stable cash balance of GBP1.2 million despite a year full of activity and investments.
Negative Points
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The gross margin experienced a decline of 3 percentage points due to the merchanting mix.
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Profit before tax (PBT) was at breakeven, indicating challenges in achieving profitability.
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The company exited some contracts that were not deemed beneficial, which could impact future revenue streams.
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There was a noted flattening of growth in the corporate promotional products industry, with the industry reporting only 1.2% growth.
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The company faces challenges in replacing incumbents in the collegiate market, which could limit growth potential.
Q & A Highlights
Q: Has there been a slowdown in momentum for the Gear Shop solution? A: Nichole Stella, CEO, stated that there has been no slowdown in momentum for the Gear Shop solution. The company remains focused on scaling the program with a robust pipeline extending into FY25 and FY26. Some contracts were exited because they were not beneficial for Altitude, but the commitment to the Gear Shop solution remains strong.
Q: What is the growth ceiling for campus locations, and what challenges exist in replacing incumbents? A: Nichole Stella, CEO, explained that the growth ceiling is difficult to determine as the company is responding to as many RFPs as possible. The main challenge is competing against large incumbents, but Altitude has been successful in winning contracts by offering innovative solutions.