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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Altitude Group Plc | LSE:ALT | London | Ordinary Share | GB00B0LSFV82 | ORD 0.4P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 28.50 | 27.00 | 30.00 | 28.50 | 28.50 | 28.50 | 48,664 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Advertising, Nec | 18.76M | 390k | 0.0055 | 51.82 | 20.27M |
From Apr 2019 to Apr 2024
TIDMALT
RNS Number : 2610K
Altitude Group PLC
20 September 2016
Altitude Group plc
("Altitude", "Group" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHSED 30 JUNE 2016
Altitude Group plc (AIM: ALT), the provider of innovative technology solutions for small to medium sized businesses, announces its interim results for the six month period ended 30 June 2016.
Highlights:
-- Adjusted operating profit* increased by GBP0.5m to GBP0.7m -- Gross profit maintained at GBP2.4m -- Gross margin of 78.9%, increased by 3.7% -- Administrative expenses* reduced by GBP0.5m to GBP1.7m, a decrease of 23.4% -- Net cash inflow from operating activities improved by GBP1.1m to GBP0.3m
-- Group remains free of bank borrowing, with net cash resources increasing by GBP0.05m to GBP0.4m since the year end
-- Two major USA Technology Partnership Agreements announced for our 'Click to Ship' solution in H1
-- Strong pipeline of opportunities
* before amortisation of intangible assets, share-based payments, exceptional charges and non-recurring administrative expenses.
Non-Executive Chairman, Peter Hallett, commented:
"The Group has a portfolio of proprietary software applications which have now been successfully developed and integrated into a compelling and potentially structurally changing solution for the $22 billion US personalised and promotional products, signage and printed wearables market.
"We have announced two significant agreements with Aprinta Group and AI Mastermind which will see our 'Click to Ship' solution rolled out to a significant number of personalised product resellers commencing in Q4 of this year. In addition, we have a strong pipeline of opportunities with similar enterprise level partners.
"Combined with the profitable and cash generative Exhibitions and Publications business, the Group is in a strong position to deliver planned growth and well placed to enhance shareholder value."
Enquiries:
Hot Features
Premium
Altitude Group plc
Peter Hallett (Chairman) Tel: +44 7887
987469
WH Ireland Limited (Nominated
Adviser and Broker)
Tim Feather Tel: 0113 394
Liam Gribben 6600
Chairman's Statement
I am pleased to present the interim results for the six months ended 30 June 2016, which saw the business deliver a profit before tax of GBP0.4m (H1 2015 loss of GBP0.7m, Full year 2015 loss of GBP1.2m), and increase net cash inflow to GBP0.1m (H1 2015 outflow of GBP1.0m).
This turnaround has been achieved as a result of the substantial restructuring of the business which commenced in April 2015, and which removed approximately GBP1.8m of recurring operating cost. It is pleasing to see the evidence of the action undertaken by the Board in 2015 so clearly reflected in the Company's results.
Customer Focus Technology
In my last report to shareholders I referenced that the Company was increasingly focusing on opportunities provided by the integrated offering of our proprietary software applications which was attracting increased customer interest.
We were delighted to announce two major contracts in the current financial year. On 14 June we announced an enterprise level technology agreement with Aprinta Group ("Aprinta") of Rochester New York USA, a leader in the provision of screen printing and promotional product supply to approximately 40,000 US distributor. This was followed on 5 August 2016 with the announcement of a technology partnership agreement with AI Mastermind, a leading US buying group serving more than 1,000 large promotional product resellers in the US (together the "Agreements").
The Agreements provide the Company with immediate access to large numbers of distributors in the highly fragmented personalised and promotional product, signage and printed wearables industry within the USA, a market estimated to be worth approximately $22 billion per annum.
As a result of these enterprise level agreements, Altitude is able to provide its unique and comprehensive "Click to Ship" online trading platform to large numbers of distributors through a single point of relationship. Such distributors have historically been reluctant to make the significant investment required to establish such a comprehensive online capability. We believe the Group's ability to provide a combination of bespoke integrated, hierarchical (grandparent, parent, child) websites, product catalogues, product visualisation and production-ready artwork functionality and a CRM/ERP solution, to these users, with no upfront charge, is compelling and potentially market changing.
In addition to the potential for increasing both the supplier's and the distributor's business, the operational efficiencies which the "Click to Ship" model delivers, also encourage the acceptance of Altitude being remunerated on a rebated or commission based share of throughput revenue. This basis of trading is the strategic priority of the Company, and the two Agreements are the first of a pipeline of similar opportunities we are exploring.
We are currently beta testing the first batch of "Click to Ship" website solutions, and expect the first customer site to go live towards the end of October 2016. We expect the sites to be earnings enhancing from customer activation, however the initial scale and speed of roll out will be carefully managed and evaluated.
We believe that the "Click to Ship" model can be adopted for the UK market, where we already have a solid presence, which whilst a smaller opportunity than the US, is still potentially significant for the Company.
Trade Only Exhibitions & Publications
On 15 April 2016, following an increase in the Company's share price, the Group was obliged to disclose the existence of early stage discussions for the disposal of the Exhibitions and Publications business. On 15 July, the Company subsequently announced that the discussions had ended
Our Exhibition and Publications business continues to perform well. The January 2016 National Show at the Ricoh Stadium, Coventry, showed another strong performance with increased profitability. Re-bookings for the 2017 show and trading in the publications business are in line with expectations and we expect another good performance from this business in 2017.
With over 4,000 delegates attending the main event in January each year, all being involved in the print, promotional and personalised gift sectors, the potential to drive additional sales of our SaaS products in the UK remains strong and adds further value to the Group.
The business is highly profitable, cash generative and provides a strong platform for the UK SaaS business and the Board is happy to retain it within the Group.
Results
Revenue was 4.2% lower at GBP3.0m (H1 2015 GBP3.1m) with the reduction primarily in the Exhibitions and Publications business, however, gross profit was maintained at GBP2.4m (H1 2015 GBP2.4m) as gross margin improved across the business increasing to 78.9% (H1 2015 76.1%) driven by a strong performance in the restructured technology business.
Administration expenses (before amortisation of intangible assets, share-based payments, exceptional charges and non-recurring administrative expenses) decreased by GBP0.5m, or 23.4%, to GBP1.7m (H1 2015 GBP2.2m), largely as a result of cost reductions effected through restructuring undertaken last year. If we include the items classed as non recurring expenses in 2015, the adjusted decrease is GBP0.8m or 30.9%.
Adjusted operating profit* of GBP0.7m (H1 2015 GBP0.2m) increased by GBP0.5m largely due to the restructuring which has resulted in a much reduced overhead base. Exceptional charges of GBP0.1m (principally the redundancy costs of the former Managing Director of Customer Focus) were GBP0.3m lower (H1 2015 GBP0.4m) and also amortisation of intangible assets reduced by GBP0.1m as assets capitalised in 2011 became fully amortised.
Included within administrative costs are software maintenance and development costs of GBP0.4m, (H1 2015 GBP0.4m), as the Group has maintained its support and development of its proprietary software assets. In addition, the Group capitalised GBP0.2m of software development costs (H1 2015 GBP0.1m). The current level of expensed and capitalised development costs is representative of an adequate maintenance level of expenditure and continuous improvement of proprietary software assets including artworktool(tm) .
The resulting operating profit and profit before tax for the period was GBP0.4m (H1 2015 loss of GBP0.7m), reflecting a turnaround of GBP1.1m.
Basic earnings per share were 0.96p (H1 2015 loss per share 1.63p) and fully diluted earnings per share were 0.87p (H1 2015 loss per share 1.63p).
Net cash inflow from operating activities was GBP0.3m (H1 2015 outflow of GBP0.8m) and investment in intangible assets increased by GBP0.1m to GBP0.2m (H1 2015 GBP0.1m) producing an increase in net cash for the period since the last financial year end of GBP0.1m (H1 2015 decrease of GBP1.0m).
The Group remains debt free and has cash resources of GBP0.4m (H1 2015 GBP0.3m, 2015 year end GBP0.4m), which are sufficient for the Group's current requirements. Cashflow is historically and seasonally stronger during the second half of the year, when deposits are taken ahead of the January 2017 Exhibition and revenue from the publications business is received.
* before amortisation of intangible assets, share-based payments, exceptional charges and non-recurring administrative expenses
Board Changes
On 28 January 2016, I agreed to become Non-Executive Chairman, with Richard Sowerby becoming Non-Executive Director, and Martin Varley appointed as Chief Executive Officer.
On 28 January Shaun Parker was appointed to the Board as Chief Operating Officer effectively replacing Vicky Robinson, former MD of Customer Focus.
There were no further changes during the year and the Board currently comprises two executive and two non-executive directors.
Outlook
The Group has a portfolio of proprietary software applications which are now successfully developed and integrated into a compelling and potentially structurally changing solution for the $22 billion US market for personalised and promotional products, signage and printed wearables.
We have announced two significant agreements with Aprinta Group and AI Mastermind which will see the our "Click to Ship" solution rolled out to a significant number of promotional product distributors commencing in Q4 of this year. In addition, we have a strong pipeline of opportunities with similar enterprise level partners and are seeing encouraging signs of acceptance and enthusiasm for our solutions.
Combined with the profitable and cash generative Exhibitions and Publications business, the Group is in a strong position to deliver planned growth and well placed to enhance shareholder value.
Peter J Hallett
Non ExecutiveChairman
Consolidated income statement for the six month period ended 30 June 2016
Unaudited Unaudited
30 June 31 December 30 June
2016 2015 2015
GBP'000 GBP'000 GBP'000
Revenue - Continuing Operations 3,015 4,535 3,146
Cost of sales (636) (998) (753)
---------- ------------ ------------------
Gross profit 2,379 3,537 2,393
---------------------------------------- ---------- ------------ ------------------
Administrative expenses before
amortisation of intangible
assets, share-based payments,
exceptional charges and non-recurring
administrative expenses (1,704) (3,306) (2,223)
---------- ------------ ------------------
Operating profit/(loss) before
amortisation of intangible
assets, share-based payments,
exceptional charges and non-recurring
administrative expenses 675 291 170
Amortisation of intangible
assets (143) (448) (239)
Exceptional charges (94) (404) (355)
Non-recurring expenses (-) (729) (244)
Share based payment charges (28) 38 (33)
---------------------------------------- ---------- ------------ ------------------
Total administration expenses (1,969) (4.789) (3,094)
Operating profit/(loss) 410 (1,252) (701)
Finance income - 3 -
Profit/(loss) before tax 410 (1,249) (701)
Taxation - - -
---------- ------------ ------------------
Profit/(loss) attributable
to the equity shareholders
of the Company 410 (1,249) (701)
========== ============ ==================
Loss earnings per ordinary
share attributable to the
equity shareholders of the
Company :
- Basic (pence) 0.96p (3.64)p (1.63)p
- Diluted (pence) 0.87p (3.64)p (1.63)p
---------- ------------ ------------------
Consolidated statement of changes in equity for the six month period ended 30 June 2016
Share Share Retained
Capital Premium Earnings Total
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2015 172 6,254 (4,145) 2,281
Loss for the period attributable
to equity shareholders - - (701) (701)
Transactions with owners
recorded directly in equity:
Share based payments - - 33 33
-------- -------- --------- --------
At 30 June 2015 172 6,254 (4,813) 1,613
Loss for the period attributable
to equity shareholders - - (548) (548)
Foreign exchange differences - - (1) (1)
Transactions with owners
recorded directly in equity:
Share Based payments - - (71) (71)
At 31 December 2015 172 6,254 (5,433) 993
Profit for the period attributable
to equity shareholders - - 410 410
Foreign exchange differences - - 18 18
Transactions with owners
recorded directly in equity:
Share based payment charges - - 28 28
-------- -------- --------- --------
At 30 June 2016 172 6,254 (4,977) 1,449
-------- -------- --------- --------
Consolidated balance sheet as at 30 June 2016
Unaudited Unaudited
30 June 31 December 30 June
2016 2015 2015
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant & equipment 32 42 79
Intangibles 990 937 1,069
Goodwill 564 564 564
Deferred tax 426 426 426
---------- ------------ ----------
2,012 1,969 2,138
Current assets
Trade and other receivables 503 696 372
Cash and cash equivalents 415 366 305
---------- ------------ ----------
Total current assets 918 1,062 677
---------- ------------ ----------
Total assets 2,930 3,031 2,815
---------- ------------ ----------
Current liabilities
Trade and other payables (1,481) (2,038) (1,202)
---------- ------------ ----------
(1,481) (2,038) (1,202)
---------- ------------ ----------
Net assets 1,449 993 1,613
---------- ------------ ----------
Called up share capital 172 172 172
Share premium 6,254 6,254 6,254
Retained earnings (4,977) (5,433) (4,813)
---------- ------------ ----------
Total equity 1,449 993 1,613
---------- ------------ ----------
Consolidated cash flow statement for the six month period ended 30 June 2016
Unaudited Unaudited
30 June 31 December 30 June
2016 2014 2015
GBP'000 GBP'000 GBP'000
Operating activities
Profit/(loss) for the period 410 (1,249) (701)
Amortisation of intangible assets 239 448 239
Depreciation 47 78 47
Share based payment charges 33 (38) 33
Finance income credit - 3 -
---------- ------------ --------------------
Operating cash flow before changes
in working capital 600 (764) (382)
Movement in trade and other
receivables 193 91 415
Movement in trade and other
payables (538) (28) (862)
---------- ------------ --------------------
Operating cash flow from operations 255 (701) (829)
Interest received - 3 -
---------- ------------ --------------------
Net cash flow from operating
activities 255 (698) (829)
---------- ------------ --------------------
Investing activities
Purchase of plant and equipment (6) (15) (21)
Purchase of intangible assets (200) (201) (125)
---------- ------------ --------------------
Net cash flow from investing
activities (206) (216) (146)
---------- ------------ --------------------
Net increase/(decrease) in cash
and cash equivalents 49 (914) (975)
Cash and cash equivalents at
the beginning of the period 366 1,280 1,280
---------- ------------ --------------------
Cash and cash equivalents at
the end of the period 415 366 305
---------- ------------ --------------------
Notes to the half yearly financial information
1. Basis of preparation
This consolidated half yearly financial information for the half year ended 30 June 2016 has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the year ended 31 December 2015.
The consolidated half yearly report was approved by the Board of directors on 19 September 2016.
The financial information contained in the interim report does not include all of the information and disclosures required for complete financial statements. The financial information in the interim report does not constitute statutory accounts as defined by Section 434 of the Companies Act 2006 and has not been audited or reviewed.
The financial information relating to the year ended 31 December 2015 is an extract from the latest published financial statements on which the auditor gave an unmodified report that did not contain statements under Section 498 (2) or (3) of the Companies Act 2006 and which have been filed with the Registrar of Companies.
2. Accounting policies
The condensed, consolidated financial statements in this half-yearly financial report for the six months ended 30 June 2016 have been prepared in accordance with the AIM Rules for Companies and on a basis consistent with the accounting policies and methods of computation set out in the Annual Report and financial statements for the year ended 31 December 2015. The Group has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing these interim financial statements and therefore the Interim financial information is not in full compliance with International Financial Reporting Standards.
In preparing the condensed, consolidated financial statements, management are required to make accounting assumptions and estimates. The assumptions and estimation methods are consistent with those applied to the Annual Report and financial statements for the year ended 31 December 2015. Additionally the principal risks and uncertainties that may have a material impact on activities and results of the Group remain materially unchanged from those described in that Annual Report.
3. Operating Segments
Under IFRS 8 "Operating Segments" the Group has determined that it has one reportable segment, Technology & Information.
IFRS 8 has been applied to aggregate operating segments on the grounds of similar economic characteristics. This position will be monitored as the Group develops.
4. Basic and diluted earnings per ordinary share
The calculation of earnings per ordinary share is based on the profit or loss for the period divided by the weighted average number of equity voting shares in issue.
Unaudited Unaudited
30 June 31 December 30 June
2016 2015 2015
Earnings (GBP'000) 410 (1,566) (701)
---------- ------------ ----------
Weighted average number of
shares (number '000) 42,908 42,908 42,908
---------- ------------ ----------
Fully diluted weighted average
number of shares (number '000) 47,378 47,978 42,908
---------- ------------ ----------
Basic earnings per ordinary
share (pence) 0.96p (3.64)p (1.63)p
Diluted earnings per ordinary
share (pence) 0.87p (3.64)p (1.63)p
---------- ------------ ----------
5. Interim Report
The Interim Report is available to download from the Company's website at www.altitudeplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LFFFFATIALIR
(END) Dow Jones Newswires
September 20, 2016 02:01 ET (06:01 GMT)
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