Altitude Group plc (incorporating Customer Focus) have announced their unaudited preliminary results for the year ending 31st December 2016.

The Financial Highlights were:

  • Major turnaround in legacy business completed and Company returned to profitability
  • Profit before taxation £0.1m (2015 Loss £1.3m), an increase of £1.4m
  • Increase in gross margin to 81% (2015 78.0%)
  • Adjusted operating profit* increased by £0.3m or 94.1% to £0.6m
  • Net cash inflow from operating activities improved by £1.2m to £0.5m (2015 outflow £0.7m)
  • Group remains free of bank borrowing, with net cash resources increasing by £0.3m to £0.7m (2015 £0.4m)
  • Proposed £2.5m new equity raise (before expenses) announced today to finance and accelerate future growth of Channl in the US and UK, including the £0.8m acquisition of the trade and certain assets of Ad Limited a UK based supplier of promotional products

* before amortisation of intangible assets, share-based payments, exceptional charges and non-recurring administrative expenses.

Executive Chairman, Peter Hallett, commented:

“The Group remains absolutely focussed on the generation of ecommerce sites for distributors enabling them to serve their end-user customers by helping them to easily conduct their B2B purchases online. Simultaneously, we continue to improve and enhance the user experience, capability and overall functionality. site generation is being scaled up in the US through our partnership with Aprinta and a new partnership with Market Brands. We are also expanding the product offering into the highly complementary niche of print and photo gifts through a new partnership with a major tier one US provider.

The Board believe these changes will encourage engagement and activation of Channl sites by distributors and their end-user customers, the engagement of whom is still at a formative stage and too early to provide an indication of representative performance. However, we remain confident that the solution is compelling and potentially structurally changing in the $21 billion US personalised and promotional products, signage and printed wearables market (“the US market”) and is capable of providing entry into the US print market.

We also announce today a proposed fund raise of £2.5 million (before expense) which will ensure the Company has flexibility in funding to significantly increase the number of US web sites created for distributors and end users, gain traction in terms of their activation and engagement and support the UK launch of Channl through the acquisition of the trade and certain assets of Ad Limited, a UK based supplier. The Board remains confident and believes that further migration of the US market to on-line is inevitable, and that our solution can play a significant role therein. We are focused on creating a significant market position and allocating resources to maximise engagement traction.”

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