ALTITUDE GROUP PLC

Management Reports • Nov 27, 2018

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RNS Number : 5480I

Altitude Group PLC

27 November 2018

27 November 2018

Altitude Group plc

("Altitude", the "Group" or the "Company")

TRADING UPDATE

Altitude Group plc (AIM: ALT), the operator of a leading marketplace for personalised products, is pleased to provide an operational update for the 9-week period since the Interim Results announcement on 25 September 2018, ahead of the Group's CEO, Nicole Stella, presenting at a Mello investor event at Clayton Hotel, Chiswick, London later today.

AIMPro summary of progress

·      As at 18 November 2018:

·      Blended average transaction fees running at 2.4% of sales order value over last 12 weeks (for member control cohort)

·      75% of Members Processing Orders ("MPO's") have placed repeat orders (up from 73%)

·      47% growth in MPO's to 240 in the last 9 weeks (up from 164)

·      41.3% growth in the number of sales orders processed to 15,722 in last 9 weeks (up from 11,123)

·      35% growth in the value of sales orders processed to $13.4m in last 9 weeks (up from $9.9m)

·      65% of AIM's 1,904 members are now actively engaging with our US customer success team

·      Current sales order value per week (8-week average) $675k (up from $487k)

·      1,254 live e-commerce websites built (up from 1,000)

·      AIM membership increased to 1,904 (up from 1,857) representing aggregate annual revenues of approximately US $1.7 billion

·     70 AIM preferred suppliers signed up (up from 65), including 15 of the largest [US] promotional product suppliers

Member Engagement

On-Boarding Status	18-Nov-18		16-Sep-18		Change
	No.	%	No.	%	%
Placed multiple orders	181	10%	120	6%	51%
Placed first order	59	3%	44	2%	34%
Ordering Members	240	13%	164	9%	46%
On-boarded or in progress	275	14%	354	19%	(22%)
On-Boarding members	515	27%	518	28%	(1%)
Acquisition (Demo)	717	38%	202	11%	255%
Total Engaged Members	1232	65%	720	39%	71%
Total AIM Membership	1904	100%	1857	100%	3%
% Engaged Members	65%		39%

Order Frequency

Active user order frequency summary - as at 18 Nov 2018
	1st Order	2nd Order	3rd Order	4th Order	5th Order	> 5 Orders
No. of members	240	180	155	142	133	116
	100%	75.0%	64.6%	59.2%	55.4%	48.3%

Order frequency has grown consistently throughout the last 9 week period, demonstrating growing traction with ordering members. Management data confirms that regular interaction between AIM members and our engagement team directly correlates to increased order throughput.

Revenue Throughput

			18 Nov 2018		16 Sept 2018		Change
Total Ordering Members (No.)			240		164		47%
Sales orders placed (No.)			15,722		11,123		41%
Sales orders placed			$13.4m		$9.9m		35%
Current 8-week average:
Sales Order Value ($000s)			675		487		39%

Suppliers

The total number of suppliers contracted to the platform is now 70. Since September AIM have added a further 87 suppliers to their preferred supplier list which now totals 280 suppliers, thus reflecting the attractiveness in gaining increased exposure to the AIM membership.

We are accelerating our supplier engagement activity to address this expansion in the AIM preferred supplier list and expect transaction fee penetration of sales orders to continue to increase as the number of contracted suppliers increases.

Gross Transactional Revenue

The current blended 12-week average transaction fee rate for our AIM member control cohort is 2.4% of sales order value (sourced through contracted suppliers), which is in line with management expectations of 2.3% at this stage of our monetization.

Penetration of total sales orders by the currently contracted suppliers to the platform is approximately 33% for the control cohort, again in line with management expectations. We expect transaction fee penetration of sales orders will increase as the contracting of suppliers continues to rollout.

Current Trading

Current trading is in line with management expectations and on target to be broadly in line with market forecasts for the year ended 31 December 2018.

Nichole Stella, Chief Executive Officer, commented:

"As we approach the end of 2018 and begin preparations for the new year, I am enthusiastic about the traction that is building in both users on the platform and in transactional throughput and fee revenue across the AIMPro platform. We look forward to the future with the confidence as we continue to build on the momentum within the AiM member base."

Enquiries:

Altitude Group plc Nichole Stella, Chief Executive Officer Graeme Couturier, Chief Financial Officer Peter Hallett, Non-Executive Chairman	+1 (215) 534 1350 07973 683234 07887 987469
finnCap Ltd	020 7220 0500
Jonny Franklin-Adams / Scott Mathieson (Corporate Finance)
Richard Chambers (ECM)

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

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