Altitude Share Discussion Threads

[sbs2521] 03/12/2022 11:30

I've held shares in Alt for almost 8yrs. Im feeling the time has come for them to seriously thrive!

[napoleon 14th] 03/12/2022 09:20

rivaldo - 8467 most interesting - thanks.


I've had a variable holding thru' thick & thin.
Let the good times roll.....

[northwards] 02/12/2022 09:11

The industry big beast FOUR share price at a multi year high. Bodes well.

[robbnw] 01/12/2022 13:47

Mine too North You only have to read the last update this week to see the scalability

[northwards] 30/11/2022 14:32

Glad you picked up a few. It's now my biggest sipp holding. It's the scalability of the business that excites me. I think further upgrades are likely going forwards.

[robbnw] 30/11/2022 14:29

Thanks 49 Percent upside to the current price I'll take that

[rivaldo] 30/11/2022 12:33

Northwards, you mentioned ALT on another thread to me - funnily enough I'd already bought a few ALT in the mid-20p's, but haven't posted here before as it's a relatively small holding.

Anyway, here's some extracts from Zeus's note for those without access:

"Soaring higher

Altitude has released H1 results for the period to 30 September 2022 showing a
robust expansion of its Services and Merchanting programmes. The Group has
grown its global AIM Smarter membership, increased average revenue per
member, and expanded Merchanting by recruiting more high-quality sales
affiliates. Last week’s revenue and profit upgrades highlight strong ongoing
momentum from Altitude. We continue to believe the Group is well placed for
accelerated future revenue growth, with operational gearing providing
substantial drop through to earnings. The average of our valuation estimates is
now 51.1p, 49.2% upside to last night’s closing price."

"Outlook and forecasts: To date, Altitude has not experienced any adverse impacts from recent macroeconomic turbulence and is confident that FY23 EBITDA will be record breaking for the Group. Last week, explained in our 22 November note, we upgraded FY23 revenue by 18.8% to £16.5m and underlying EBITDA by 22.8% to £1.5m. Further increases to these forecasts could come from favourable FX movements, although our estimates are not predicated on this. Higher growth is forecast to continue into FY24, we therefore increased revenue by 21.1% to £23.7m and adjusted EBITDA by 13.6% to £1.8m.

The Group has signed new Affiliates in H1 2023 that are expected to have a $5m annualised revenue impact. With c. 40 Affiliates at the moment, Management has ambitions to increase this above 100. We continue to believe Altitude has a well-invested, scalable platform to materially grow revenue and earnings.

 Valuation: Despite the positive share price reaction to last week’s trading update, Altitude, at 1.4x FY23 EV/Sales, is still at a 31% discount to the average of UK small cap software and services peers (2.1x FY1). Applying the 2.1x peer mean EV/Sales multiple applied to FY23 sales, adjusted for FY22 net cash, results in a share price estimate of 49.3p for Altitude. We have updated our DCF analysis for latest forecasts and increased the discount rate from 10% to 12%, reflecting increases in interest rates since our March initiation. The result is a 22% increase in the DCF estimate from 42.2p to 51.4p per share.

We also roll-forward our discounted medium-term valuation estimate, now 52.6p per
share, assuming stronger growth in the years to FY26. The average of these three
estimates is 51.1p, 49.2% upside to last night’s closing price."

[northwards] 29/11/2022 16:49

I wonder if the 115,000 trade this am might be a director buy ?

[sweenoid] 29/11/2022 15:31

Investor meeting webcast 2pm 6/12/22
Questions will be accepted
I value the opportunity to see the CEO AND CFO communicate directly with us the shareholders

S

[northwards] 29/11/2022 15:12

51 pence by my reading.

[robbnw] 29/11/2022 14:22

I think soHave heard Zeus upgraded to 50 plus?

[steveberyl] 29/11/2022 11:06

Perhaps 40p EOD really quite good under current circumstances.


Must mention the ridiculous spread on Alt, its all over the shop, deters buyers, imho.

[northwards] 29/11/2022 09:58

Time to top up ... ?

[steveberyl] 29/11/2022 09:58

Was ever thus, "Better to travel, than to arrive"

Consolidation at 30p mark, then slowly, slowly, onwards & upwards as Institutions get the Alt bug.

At the rate of growth highlighted, a divi would not be out of the Question within 18 month`s.

[northwards] 29/11/2022 09:51

Not yet. But a very bullish note.

[robbnw] 29/11/2022 09:48

Stars /North Agreed Let's the small shareholders sell and move on .The big loyal shareholder that get the message will see the business for what it is Have Zeus re rated?

[stars309] 29/11/2022 09:05

Tiny Net 50k sells Vs 1 million buys in previous 5 days Day traders exiting Fair play if they made a few quid on the up

[northwards] 29/11/2022 08:32

Let the small sellers exit and this will turn higher again.

[robbnw] 29/11/2022 08:27

Totally agree and re Zeus alsoThink they have ?

[robbnw] 29/11/2022 08:26

TotallyWhat a superb picture this paints

[stars309] 29/11/2022 08:15

Bravo Nikki, Graham, Peter, Dave & Team. At last some robust trading numbers to back up the optimism.

[sweenoid] 29/11/2022 07:52

Wow!
I have been investing successfully for 30 years across a broad spectrum of companies but I have never read a more upbeat earnings result than that, there is little point listing the highlights as it would just be a repeat of the statement 😂 but I love the GROWTH of 26% on a CONSTANT CURRENCY basis- that’s fabulous, then ADD IN the ongoing currency TAILWIND prospects and outlook look great

The world is a basket case at present so these words are most comforting
“ not experienced any negative impact to date from the current macro-economic turbulence”

Zeus should rerate this stock immediately and let’s hope this report garners some press and publicity

That’s it for me for a while, little more to be said except
The tide went out
It’s now coming in
First a ripple, then a wave and who knows a tsunami may be coming 😉
S

[northwards] 29/11/2022 07:34

26 percent growth at constant currencies. That's good. Also, lots of talk about scalability. Debt free and credit facility undrawn.

[robbnw] 29/11/2022 07:29

What an updateA great read We are back on track now post covid years Well done Nikki Well done the Board A company performing in all areas All one way to go now Up up up Remember one time not so long ago these shares were well over 100 p !

[doodle1] 29/11/2022 07:21

Nice!Let the fireworks begin