Altitude Group (ALT ) delivered a trading update ahead of its final audited results for FY23 expected at the end July 2023. Altitude is a provider of technology and SaaS information services to the promotional products, print, and clothing industries.
The company reported a strong year of trading after multiple upgrades for the full financial year ended March 31, 2023, and expects results to be "at least in line with market expectations" representing a minimum year-on-year increase in revenue of 49% and adjusted EBITDA growth of 74%.
Cash increased to £1.2m from £0.9m in FY22. Additionally, the company signed a US$1.7m credit facility with TD Bank NA that is currently undrawn, but could be used for additional working capital and investment in its Merchanting division.
Momentum is strong into FY24 with initial trading tracking significantly ahead of the same period last year, benefiting from the commencement of new contracts, and full-year impact of strong growth in Altitude's Merchanting and Services division.
Growth in Merchanting is being driven by the expansion of Altitude's Adjacent Market Programmes (AMPs), with a growing pipeline of contracts entering final stages of negotiations. The company is currently rolling out its AMPs nationally across the US, with further details expected when the process completes around September 2023. Through the AMPs, Altitude has already become a US Apple Authorised Campus Store provider, able to offer a wide array of Apple products to its clients within the AMPs.
With the addition of AMPs to its business model, Altitude should be able to maintain or exceed its pace of growth in FY24 and beyond. ALT is up 28% year-to-date and 58% in the past 12 months. Shares rose 3.57% on today's update.
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