Altitude Share Discussion Threads

[northwards] 01/5/2024 10:42

There's really a lot to like with the update. New gear shop contracts 'imminent', Merchanting growing well, cash up, enhanced lending facility in place, sticky revenue model. Feels like we are on the cusp of transformational growth.

[yump] 01/5/2024 09:33

Effectively recurring revenue as well so rating should be decent. Not sure what total recurring is over the whole business.

[northwards] 01/5/2024 09:31

My sense is $3-5m additional revs per year post tender process. With a decent gross margin.

[yump] 01/5/2024 09:22

$12mln a year part way through tendering period would be a bonkers increase given annual rev is £26mln.

So, second guessing a bit: perhaps expect say miniumum £2-3mln a year rev increase just from gear shops by end of tendering ?

[northwards] 01/5/2024 09:16

My understanding now is that the $12m revenue figure from new contracts is across 5-8 years in total, not per annum.

[northwards] 01/5/2024 08:25

Suspect we will get contract updates in the coming weeks.

[samed1] 01/5/2024 08:18

Yes they have. Repeats the rns and reaffirms target price

[rivaldo] 01/5/2024 08:12

Excellent update.

To have already won new Gear Shop contracts with an annualised value of $12m - for the next 5-8 years - is terrific news. And likely more to come.

Zeus have a 57.8p valuation estimate, and have at present retained their 1.6p EPS forecast, rising to 2.4p EPS for the current year, although today's RNS presumably suggests the historic forecast will be beaten.

[yump] 01/5/2024 08:07

Good update - look forward to end of tender season around June.

Crikey thats only about 8 weeks away to the longest day - this years going too fast !

[stars309] 01/5/2024 08:04

As expected Strong update Will continue to hold and add

[seangwhite] 01/5/2024 08:02

Have Zeus done an update?

[northwards] 01/5/2024 07:56

Yes, and the majority of new gear shop contracts still to come I believe.

[robbnw] 01/5/2024 07:48

My view is that the statement had to be issued as so much silence but looking v good Revenue booming now

[robbnw] 01/5/2024 07:47

Agree north and i hope much more to come

[samed1] 01/5/2024 07:45

Yes been chewing on the same point and am hoping you're right. Zeus agree with you - "The Group has been awarded new Gear Shop contracts with annualised value of c. $12m over their 5-8 year terms"

[northwards] 01/5/2024 07:35

One line that may need clarification : 'new Gear Shop contracts have been awarded commencing during FY25, equalling $12m in total estimated gross revenue over their 5-8 year terms.'I believe this is $12m gross revenue per annum.

[sweenoid] 01/5/2024 07:32

Super statement. Confident, optimistic and bullish- what’s not to like, not one negative comment. No dilution as there will be no ‘placing’; to fund the gear shop expansion. Cash flow must be very good because despite much investment it has increased 🙂
I like the tone of the statement as it’s quite obvious that the gear shop expansion is going at a pace and perhaps more importantly the existing shops are trading strongly.The ‘model’has obviously shown to be effective.

I particularly like this part- says it all really “ Merchanting, continues to experience rapid scale and the Group's Services division continues steady YOY growth, outperforming the wider promotional product industry. Given the strategic work we have done over the recent years, we are in a strong position today to outperform market conditions owing to our increasingly diversified position”. Add in a 23% growth in affiliates that’s strong progress!

So ALT are outperforming the sector, this should lead to a re-rating when we get final results which will beat expectations and they can then add much more colour to Gear Shop which looks to be fulfilling all my expectations.

As we won’t get full results until 30th July I fully expect another trading update sometime late June giving details of the gear shop wins along with more positive news on trading.

✅👏S

[northwards] 01/5/2024 07:12

Well, pretty decent update. Cash has grown a tad, even with Gear Shop role out and an increased banking facility - unused - is good to see, which suggests an equity fund raise is not required.

[northwards] 30/4/2024 08:31

One of my other holdings has just issued a trading update for March & April. It can be done.

[seangwhite] 29/4/2024 13:22

No real volume today and any news will need to be fairly upbeat to get back to the share price level after last November's update.

[yump] 29/4/2024 09:47

“Maybe somebody has heard something”

Either that or a bit of bottom gambling.

Reminds me of some Colemanballs from years ago:

“The crowd are booing, they must have seen something nobody else did”

[northwards] 29/4/2024 09:17

We were at c 45p at the last update in November. What then hit the share price was Martin Varley's wife selling c 600,000 shares. All sorts of personal reasons why that happened.

[davemac3] 29/4/2024 09:11

Maybe somebody has heard something

[northwards] 29/4/2024 08:41

More patience required it seems ...

[yump] 25/4/2024 21:46

Are saints actually patient or just extremely passive ?