Altitude Group PLC Postponement of results and trading update (5127A)
September 30 2020 - 1:00AM
UK Regulatory
TIDMALT
RNS Number : 5127A
Altitude Group PLC
30 September 2020
30 September 2020
Altitude Group plc
(the "Company" or "Altitude")
Postponement of Results and Trading Update
Altitude Group plc (AIM: ALT), the operator of the leading
marketplace for personalised products, provides an update on its
results for the 15 month-period ended 31 March 2020.
In line with the Financial Reporting Council ("FRC") guidance*,
the Company now expects to release its results for the 15
month-period ended 31 March 2020 by the end of October 2020. This
delay is caused by the impact of the coronavirus pandemic on the
audit, including the remote audit process of the Company's main
operations in the US and the impact of business disruption on
judgmental balance sheet valuations. While the Board cannot be
certain as to the level of adjustments that the auditors may take
in relation to the coronavirus pandemic effects on the Company's
operations until their work is fully concluded, management expects
to report the following for the 15 months period ending 31 March
2020:
-- Revenue from continuing operations not less than GBP8.0 million**
-- Comparable revenue for the 12 months ending 31 December 2018 was GBP2.9 million
-- Cash position of GBP2.4 million
The Company can also report that the cash position at 31 August
2020 was GBP1.6 million which was in line with management's
expectations. The Company continues to be cautious in relation to
managing cash and discretionary spending. Following the cessation
of the US Payroll Protection Programme, the Company instituted a
temporary 20% salary reduction for the management team and
temporary reduction in staffing hours for all other employees in
both the US and the UK.
Current Trading
The Company has continued to trade and support its distributor
and supplier customers through the worst period of lockdown. As
previously detailed 25% of US revenue is not reliant on
transactional volume.
Recent industry reporting indicates that market transactional
volume was 44% down in the June quarter vs 2019 but improved in
July to 29% down and was steady in August at 26% down. Smaller and
medium sized distributors are reported to be slightly higher in
terms of year on year reductions. The slower rate of improvement in
August has tempered industry expectations for a V shaped recovery
and whilst August may be indicative of a longer and slower climb
through 2020 and into 2021, it is currently impossible to predict
with any degree of certainty.
We have retained 175 suppliers within the Preferred Supplier
Programme and AIM Smarter distributor membership has held steady
and currently stands at 2,103, who collectively historically
delivered aggregate annual revenues of circa $2.2 billion to
end-users.
We look forward to providing a further update with our full
Preliminary Results on 30(th) October.
* Financial Reporting Council ("FRC") guidance states,
"Companies, and in particular their audit committees, understand it
is vital that auditors have sufficient time and support to carry
out their work to an appropriate standard, including reassessing
work done to reflect changed circumstances - in some cases, this
may need companies to reconsider their reporting deadlines. Taken
from FRC Guidance on audit issues arising from the Covid-19
(Coronavirus) pandemic, 16 March 2020.
** Continuing Operations exclude Ad Products which has been
sold.
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. The above notification
is made in accordance with the requirements of the EU Market Abuse
Regulation.
Enquiries:
Altitude Group plc Via Instinctif - 020 7457
Nichole Stella, Chief Executive 2020
Officer
Graeme Couturier, Chief Financial
Officer
Keith Edelman, Non-Executive
Chairman
finnCap ltd
Jonny Franklin-Adams (Corporate
Finance)
Charlie Beeson (Corporate
Finance)
Richard Chambers (ECM) 020 7220 0500
Instinctif Partners (Financial
PR)
Matthew Smallwood
Chantal Woolcock 020 7457 2020
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END
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