Altitude Share Discussion Threads

[ihatemms] 11/1/2017 20:48

Excellent SH. Will be very interested in the response.Thank- you for you efforts re the above.

[stephen1946] 11/1/2017 20:45

Sheep herder, as comprehensive and lucid a list of questions at this moment in time.
Extremely well done.

[sheep_herder] 11/1/2017 20:37

OK, this is what I'm sending to Martin unless there are further requests or clarifications... Shout if you think I've missed your question. I've tried to group the questions into related blocks.

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Understanding the market
The following is my understanding of the current opportunity.
- The promotional goods market in the US is c.$25B
- Only $1B of that is currently being sold online due to fragmented resellers who can’t afford to invest in building an online business.
- If ALT could enable enough PPD’s to do $1B online between them by supplying free tools to convert 5% of their business, that would equate to a contribution level of $100M.

1. What is it that prevents this $24B market from investing in their own online business? Are the majority very small businesses that lack the skills and funds to create an online presence?
2. How many distributors make up this $24B market?
3. What is the average revenue for these distributors?
4. What is the margin breakdown for a distributor and a printer? Or perhaps another way of looking at it given the numbers above is it a good approximation that ALT would get a contribution level of 10% of the sales total?
5. How much of the $24B market is addressable by the tools that ALT are providing?
6. Is the 5% a realistic conversion rate or a pessimistic example?
7. Are you concentrating on the US market only or will you roll out the products to other regions?


Aprinta/AIM Deals
8. The latest SCSW article noted that there are currently 22K distributor website live. Is the plan to enable all of the 40K+ distributors in these two deals?
9. If the above is true, what timescales are we looking at to have all websites enabled?
10. How many customer websites does this equate to?
11. What is the engagement level from the websites that have gone live? Are you receiving good feedback and are orders being placed?
12. What is the total yearly revenue attributable to the distributors covered by these two deals?
13. Do you envisage growth in this total as a direct result of the distributors using these new online tools?
14. Are you expecting a linear or exponential ramp in revenue from these enabled websites?
15. When the Aprinta deal was announced, Billy Dolan was quoted as saying Aprinta had plans to double their printing capacity during 2017. Was this as a direct consequence of the deal with ALT or were they already expanding?
16. Are there further distributors in the pipeline who are being targeted?


Business Model
17. The traditional model was to charge a subscription fee to the users of your software. Will you be migrating current customers to the new revenue sharing model?
18. What are the costs involved in enabling these distributors? Will the costs remain largely consistent with what has been reported in previous accounts?
19. Given that the development of the product has been completed, am I right in assuming that the costs involved from here on are purely maintenance and therefore minimal?
20. Assuming the above two costing points are true, does that mean that your free cash flow generation will be spectacular?
21. What do you intend to do with this cash?
22. FOUR seem to return 50% of their operating cashflow to investors in the form of a dividend. Can we expect a similar return?


Future Business
23. The latest SCSW mentioned that you are trying to set up a “B2B Amazon”. Am I right in assuming this means a central B2B website that connects all the promotional goods distributors?
24. Are there other markets where you can apply your C2S software outside of the promotional goods space and is this something you are targeting now or will postpone until the roll out of the current project is complete?


For Fun
25. Do you see any negatives from being an AIM listed company in terms of convincing institutional investors to invest in the company? Would a full listing be something you would like to see occur?
26. You were quoted in SCSW as dreaming of a £5 share price. Is that your ‘preference217; for this year or next?

[the patient investor] 11/1/2017 20:24

tomorrow we COULD have a HUGE day...

[ddav] 11/1/2017 19:28

Or instead of Filtered --- PERCOLATED!!!!! 8¬}}

[sheep_herder] 11/1/2017 19:08

Should have that printed on a t-shirt. :-)

[ddav] 11/1/2017 19:00

Stupidity and Mischief --- (filtered)

[stephen1946] 11/1/2017 18:36

Stupidity or mischief.

[the patient investor] 11/1/2017 18:11

stupidity takes up space

space should not be wasted

smithless11 Jan '17 - 17:12 - 1207 of 1209 0 0 (Filtered)

[ileeman] 11/1/2017 18:09

Nice finish and great looking chart, I bought a few more today aswell.

Closed on previous all time high, either this is going to surge straight into new highs or it might pullback to around 105p before breaking once and for all imo...either way looks great.


free stock charts from uk.advfn.com

[bestace] 11/1/2017 18:04

Smithless - the £366k cash balance in the group accounts is net of the £1.892m overdraft in the parent company, i.e. there is £2.258m of cash held across the various subsidiary companies. Therefore there is net cash in the group as a whole, not net debt.

From the notes to the accounts (bottom of page 16 and again at the bottom of page 34):

"Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the Consolidated Cash Flow Statement"

Those figures are as at 31 December 2015. In the interims they said net cash had increased by a further £50k since then and as they are cash generative I would expect this to have increased further by now.

[smithless] 11/1/2017 17:12

Page 39, note 31 bank overdraft £1.892m, interest payment nil for 2015 & 2014? Overdraft £673k in 2014 page 39, note 30.

Maybe mistaken, but net debt at group level should be a lot higher as the bank has secured against it, in part, against cash held in group. Perhaps part of the same, thus group would be in net debt if around £1.5m IMHO

[ddav] 11/1/2017 16:19

Double Lols!! 8¬)) --- looking at sector 3 of a certain person's profile/posts, you will see further talk downs of another company.

[stephen1946] 11/1/2017 16:18

Nothing in the 2015 numbers? A wild guess by me, would indicate nothing on the company books.

[revoman] 11/1/2017 16:07

Thanks Smithless.

[smithless] 11/1/2017 15:36

Just had a look at Dec 2015 accounts and there is a company debt of £1.9m, which is a bank overdraft (2014 nil)and is secured against the groups £400k at H1. That would put the company in a net debt position of £1.5m. I can't see the overdraft at group level in the 2015 numbers?

[revoman] 11/1/2017 15:23

Thanks Smithless.

[sheep_herder] 11/1/2017 15:18

Past performance is no guarantee of future results.

[smithless] 11/1/2017 15:15

I don't want to bring a downer on this current rally, but a market can of £51m on a PTP of £400k at the half year and about the same in group cash. From memory doesn't it have a Company loan of £1m+. I like the space, but in needs more cash and looks way up with events IMHO

[the patient investor] 11/1/2017 13:06

Nice :-)

Does anybody smell the seductive scent of 2£ by this Friday?

[sheep_herder] 11/1/2017 13:02

Last years trading update was the second Thurs of Jan, which is tomorrow.

[the patient investor] 11/1/2017 13:01

Totally agree iLee

They are giving me 1.1552 on TDDirect, above mid price on a dummy sell

Very bullish trend, we shoud reach 1.20 by friday with ease

[ileeman] 11/1/2017 12:42

Tick down but MM not letting you buy any goes straight to NT. MM struggling.