Altitude Group – current year take off sees shares leap 20%
Yet another profits upgrade has been guided by the global promotional products Altitude Group (LON:ALT) for the year to end March 2023
The company continues to deliver on its strategy and has been experiencing continued robust trading via expansion of its Services and Merchanting programmes. As a result of the strong trading and underlying performance noted in November which has continued into 2023 the group’s board anticipates that FY23 trading will be materially ahead of current market expectations.
CEO Nichole Stella stated that:
"Following a number of positive market updates earlier in the year, we are delighted with this continued progress and are expecting to achieve record year-end results. In addition to our improved trading so far this year, we have invested in growing market share and have a reassuringly strong pipeline of opportunities. We look forward to updating the market further in the forthcoming months and to the next financial year with great enthusiasm."
The Sheffield-based Altitude Group (LON:ALT) owns and develops the technology solutions and services in North America and the UK.
The £23.7m capitalised company offers patented technology platform to its network with a built-in supply chain, as well as combines an e-commerce trading platform with a cloud-based CRM and order management system for business intelligence requirements; e-commerce website solutions with in-built patented online designer and pre-loaded product databases; patented online design solutions; and virtual sample services that allow personalized design on a product with imprint technique.
It also provides various services, such as supplier relations, negotiated group discounts, events and exhibitions, catalogues, artwork services, and marketing programmes.
In addition, the company provides various design tools, applications, and website pop-up stores for promotional product distributors and suppliers.
Analyst Opinion – 52p share valuation
Analysts Andy Hanson and Carl Smith at NOMAD and Broker Zeus Capital upgraded their current year estimates.
They are estimating end March 2023 sales of £17.3m (£11.9m), adjusted pre-tax profits of £0.8m (£0.1m), lifting earnings to 1.3p (0.5p) per share.
For the coming year they see £24.4m sales, £1.1m profits and 1.5p per share in earnings.
They have a discounted cash flow valuation of 52p on the group’s share.
Conclusion – good upside
Building up a good market showing, with regular profit upgrades is very positive.
The group’s shares responded to the good news, leaping 20% to 40p.
When they ease back after initial euphoria the shares will offer good upside to patient investors.