Yes I suspect you're right... although back then I thought the live contract number was 16 .... either way, they wouldn't answer any questions on pipeline (other than that broad statement), win rates or targets. I also agree that 20 with growth in annualised recurring revenues and heading into this season ain't the sort of showing that warrants that level sell off ... but then I have a vested interest in saying that. |
Yes they should have explained that as it is pretty specific. I don’t count it as massive underperformance though. |
This from 1 May is why I think they have underperformed on Gear shops and overly raised expectations, given only 1 new contract since:'Further contracts are anticipated imminently from a robust pipeline that typically tapers in June. Additionally, our existing Gear Shops are having a strong graduation season, providing a positive start to FY25. The Group will keep the market informed of any further UGS contract awards as we progress through the remainder of the tender season'. |
Crazy sell off People are stupid |
Exactly they've been very careful not to commit to sign up numbers...I can't understand why people aren't focusing on the compounding revenues from the current signup plus the fact it's the start of the new season for colleges. "Within the University Gear Shop business, as the Group enters the new tender season, it is positive to see Altitude already signing a new contractalong with another being at the negotiation stage. Based on 20 secured contracts, thistranslates to expected annualised average revenues of c. $9.5m. Management also highlightthe robust pipeline of opportunities in the division, providing us with confidence in theforecasted growth profile of UGS over the medium term. |
Great minds etc ;-) |
What massive underperformance ? Or am i missing something |
I must be missing an imaginary massive target if there’s a massive underperformance in gear shops.
They’ve probably got the low hanging fruit and the larger colleges/unis are the next target - which could take more than 6 months to conclude.
It also appears that the contract “season” is a bit more spread out than it first appeared. |
4*
Altitude Group Plc, the leading end-to-end solutions provider for branded merchandise, issued a trading update for the six months ended 30 September 2024. The Group's financial performance in HY25 is expected to demonstrate strong year on year growth, with revenue expected to be over 20% up and Adjusted Operating Profit expected to be 9%...from WealthOracle
wealthoracle.co.uk/detailed-result-full/ALT/984 |
Rob, I think it's the massive underperformance in Gear shops that has hurt. |
This drop is crazy . The business is doing well in the US and we have the US market on a high with four years of Trump ahead . Madness the dive in the SP |
Omg I’m going to have to wait a bit. At least we can all get instant gratification by using Prime. |
Yup feels like gs dominates peoples perception of value ... still new season starting. Let's hope they bag a few big ones this time. |
It's entirely possible there is a seller trying to clear their position, selling on news. |
The problem is, management hyped gear shops so much ... clearly underperforming on that front. |
Zeus see it differently Valuation: Based on Zeus' unchanged forecasts, Altitude trades on 0.7x EV/Sales and 7.6xEV/EBITDA for FY25, with EV/EBITDA falling to 5.1x by FY27. We believe this is undervaluedfor the sales growth we forecast and the operational gearing potential. Our sum of the parts(SOTP) valuation remains at 66.1p per share, implying 94% upside to last night's closing priceof 34.0p. |
1 additional gear shop contract ... |
We know that ALT is gaining market share. ASI report a strong 3Q for the industry: +4.2%
hxxps://members.asicentral.com/news/podcast/promo-insiders/distributors-strong-q3-puts-industry-annual-sales-record-in-reach/
Distributors’ Strong Q3 Puts Industry Annual Sales Record in Reach
ASI’s top research executive and executive news editor discuss the numbers and narratives behind the merch market’s third quarter, how Q4 is shaping up and what lies ahead in 2025.
Promo Insiders 11/7/2024
Promo distributors’ sales have experienced a steady growth rate rise in 2024.
After industry revenue decreased on an annual basis in the first quarter, distributors’ sales ticked up 1.3% year over year, on average, in Q2 and then shot up 4.2% in 2024’s Q3 compared to the same three-month stretch in 2023. |
Reasons to be cheerful?
hxxps://www.edisongroup.com/research/good-performance-against-a-difficult-backdrop/34127/ |
I'm looking at investing in Altitude. In the management presentation the CEO describes the University market as being dominated by two incumbents.
Would be useful to know the names of these companies if anyone can advise. |
From FOUR update today: The promotional products industry in our primary North American market has continued to present a challenging trading backdrop. Continuing uncertainty around economic conditions has translated into generally weaker levels of corporate confidence, compounded by specific macro factors over which the Group has no control, including elevated interest rates, severe weather events and the distraction arising from the US election cycle. |
I for one am delighted about trump Superb for US businesses We will do well at ALT |
Well, trump has promised 10 percent important tariffs on all goods, and 60 percent plus on Chinese goods. Not sure this is good for the US promo industry. |
Any movement in the shareprice is welcome for holders but as usual is sadly on very small traded volume.
The company has little free float so these fluctuations are just the way the market works on small AIM listed companies. |
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