Altitude : FY2023 Annual Report

Audited Annual Results for the Year Ended 31 March 2023

Record breaking numbers

Strategic Report		Governance		Financial Statements

Altitude is a diversified portfolio Group that is the leading end-to-endsolutions provider for branded merchandise across a variety of sectors from the corporate promotional products industry and print vertical markets to the higher-education sector

Contents		Governance
1	Financial Highlights	28	The Board
2	Core Values	30	Directors' Report
			36	Independent Auditor's Report to the Members of Altitude Group plc
Strategic Report		Financial Statements
4	Chairman's Statement	42	Consolidated Statement of Comprehensive Income
6	Business Model	43	Consolidated Statement of Changes in Equity
	-	Who Are We	44	Consolidated Balance Sheet
	-	What we do	45	Consolidated Cash Flow Statement
	- Size of the market we serve	46	Notes to the Consolidated Financial Statements
12	Chief Executive's Statement	76	Company Balance Sheet
16	Chief Operating Officer's Report	77	Company Statement of Changes in Equity
18	Chief Financial Officer's Report	78	Notes to the Company Balance Sheet
24	S172 Statement	82	Notice of Annual General
			88	Advisors

Altitude Group Plc

Audited Annual Results

Financial Highlights

Group revenues	Gross Profit	Group adjusted operating profit*
£18.8m	£8.6m	£2.0m
CIRCLE-UP 57.2% (2022: £11.9 million)	CIRCLE-UP 39.9% (2022: £6.2 million)	CIRCLE-UP 83.4% (2022: £1.1 million)
Basic and diluted	Cash balance
earnings per share	at year end
0.55p	£1.2m
CIRCLE-UP 293% (2022: £0.14p)	CIRCLE-UP £0.3m (2022: £0.9 million)

• Cash inflow from operating activities increased by £1.8 million to £1.6 million
  (2022: outflow £0.2m) driven by significant revenue growth and increased trading activities
• Cash outflow from investing activities of £1.1 million (2022: £0.9 million)
• The Group secured a financing facility of $1.7 million to support future substantial growth in Merchanting. The facility remains undrawn and the Group is debt-free

Ten Year Record:

Revenue

FY23

CIRCLE-RIGHT Chief Financial Officer's Report page 18

Key corporate developments and operational highlights

• The Group enjoyed a record year of adjusted operating profit
• The Group invested in pipeline growth and business development efforts, which have paid off, and driven significant growth across its Merchanting divisions, providing £1.6 million of operating cashflow to drive future growth
• The US delivered adjusted operating profit growth of 49% reaching $4.1 million (2022: $2.8 million)
• The Group's adjacent market solution has proven to be disruptive in the sector and is driving hyper-growth
  across the Group with the signing of high-valuemulti-year contracts which will all generate revenue in the first half of the current financial year. Further contracts have been signed after the year-end.
• ACS added significant revenue growth, doubling the annualised expected revenue run-rate from Affiliatesin the year
• Services revenue has grown by 35%, which delivers a 90.6% fall through to gross margin
• US AIM membership has continued to grow, and currently totals 2,214 global members, up from 1,917 at acquisition, consolidating its position as one of the largest distributor organisations

Please note that percentages are calculated based on unrounded numbers as reported in the primary statements.

* Operating profit before share-based payment charges, amortisation of intangible assets, depreciation of tangible assetsand exceptional charges

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Strategic Report		Governance		Financial Statements

Our Core Values are…

RespectAt Altitude is contagious

We give it, we earn it, we spread it across our Group and our communities

collaborativeAltitude is acommunity

By collaborating closely with our corporate partners, higher-education partners, our supplier partners

and across all of our customer base, we create opportunities for everyone in our community

forwardAltitude isthinking

From strength in technology to creative resources, Altitude is constantly introducing

fresh ideas to push innovation in market delivery forward

committedAltitude isto our teams, partners, customers and our community

Every day we strive for the betterment of our workplace and our world

Altitude is

never willing to

accept the status quo

Driven by industry success and ground-breaking

results, Altitude's most powerful growth comes from our

daily efforts to be better than yesterday

Altitude is

a Group you

can count on

We take pride in our ability to provide a personal touch

and deliver quality in everything we do

Strategic Report

riving the business forward at pace

Nichole Stella, Group CEO of Altitude, said:

This financial year was one of great progress, strong trading and record breaking results.

We increased market share in our core markets and proved to be a disruptive force in a new market. As a result, the Group has shown growth across the business far exceeding our original expectations. This performance is a testament to not only the incredible hard work of our dedicated staff and management team but also a testament to the success of the strategy that was put in place when

I arrived and renewed with vigour in 2021. I am delighted that we grew the existing business by 57.2% which in itself is no small feat, but to do it on a global basis whilst establishing a new vertical is a great achievement. We have a business that is robust, ambitious and is very well positioned for scalable growth. We look forward to the future, both near term and longer term, with great confidence.

CIRCLE-RIGHT Chief Executive's Statement page 12

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