Trading Update

RNS Number : 5422Z

Altitude Group PLC

17 January 2011

 

AIM: ALT

17 January 2011

Altitude Group plc

("Altitude" or "the Group")

Trading Update

The board of directors of Altitude (the "Board"), the promotional merchandise and marketing solutions group, announces the following trading update in respect of the financial year ended 31 December 2010.

Highlights

·  Profits for 2010 expected to be in line with market expectations

·  Overall Group revenues expected to be up 18% to approximately £18.1 million (2009: £15.3 million)  

·  Revenues in Promotional Marketing division up by 20%

·  Bookings (Revenue) for January exhibition event up by 15% on 2010

·  Successful USA launch for 'Trade Only^®' software and information business

·  Cash balances of approximately £1.5 million (2009: £0.8 million) at year end with no debt

·  Strong balance sheet

Trading Update

The trading environment improved modestly during the second half of the year, helping the Group's overall performance. Revenues were increased to approximately £18.1 million (2009: £15.3 million) through new account wins earlier in the year and from greater spend by existing customers.

Revenues in the Promotional Marketing division grew in the second half of the year by around 34% (compared with H2 2009) and overall in the year by 20%, although the market remained competitive which led to an overall reduction in gross margins.

In the Exhibitions and Technology division, the Group launched its US 'Trade Only^®' software solution last week at the PPAI Expo in Las Vegas, Nevada.  The response has been encouraging and presents the Group with a substantial opportunity to build on its distribution agreement with iPROMOTEu.com, which was announced in November 2010.

Altitude's main exhibition, the 2011 Trade Only National Show, which takes place at the end of this month, is sold out with 12% more space contracted than last year, at an improved yield, resulting in sales increased by 15%.

The Board's focus on cash management is benefitting the Group, with the year end cash position higher than expected at £1.5 million (2009: £0.8 million) due, in part, to earlier debtor receipts than forecast.

Colin Cooke, Chairman of Altitude, said:

"Overall the Group is now in its strongest position for three years which is due to the efforts and enthusiasm of all of our team, who have improved overall profitability despite difficult trading conditions."

"We enter 2011 with a number of opportunities, an appropriately structured cost base and a strong balance sheet."

Enquiries:

Altitude Group plc
Colin Cooke (Chairman)	Tel: [phone]
Martin Varley (Chief Executive)	Tel:  [phone]
Merchant Securities Limited
Lindsay Mair / Bidhi Bhoma	Tel:  [phone]

Notes:

Altitude Group plc has two distinct but related businesses.  The Promotional Marketing division is one of the UK's leading providers of promotional merchandise to corporate and trade customers and has been built through a combination of organic growth and bolt-on acquisitions.  The Exhibitions and Technology division (Trade Only) provides various marketing and technology tools to both suppliers and distributors operating in the promotional merchandise industry.  This division organises the UK's biggest trade show for promotional products and offers a suite of "Cloud" and Server based software to companies of all sizes in the sector.

 

END

 

 

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