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This article covers information on Altitude Group PLC.
LON:ALTAltitude Group’s interim results for the six months to 30 September 2025 (HY26) show a business leaning into growth areas while tightening discipline across the portfolio. Revenue rose 18% to $21.6m, driven by merchanting, while platform Services were broadly steady. Profitability nudged up on an adjusted basis, although exceptional costs tipped the period to a small statutory loss.
The headline story: management has been reshaped, operating structures decentralised, and both merchanting divisions reviewed to lift margins and reduce working-capital drag. The platform-centric AIM business remains the high-margin engine, with new AI-led tools already live and a major refresh scheduled to roll out through the first half of 2026.
| Metric (HY26) | HY26 | HY25 | Change |
|---|---|---|---|
| Total revenue | $21.6m | $18.3m | +18% |
| – Services (AIM platform) | $5.3m | $5.4m | -1% |
| – Merchanting (ACS + UGS) | $16.3m | $13.0m | +25% |
| Gross profit | $7.7m | $6.7m | +16% |
| Gross margin | 35.8% | 36.5% | -0.7pp |
| Adjusted operating profit | $1.6m | $1.5m | +8% |
| Adjusted operating margin | 7.5% | 8.1% | -0.6pp |
| Statutory basic EPS | (0.75c) | 0.11c | n/a |
| Cash and cash equivalents | $0.7m | $0.4m | +61% |
| Net debt | $2.3m | $0.8m | +188% |
| Net assets | $15.1m | $14.0m | +8% |
Services revenue – the high-margin AIM platform (subscriptions, supplier-funded “Preferred Partner” arrangements and related services) – was stable at $5.3m, in line with subdued US corporate spend noted across the sector. Crucially, AIM still carries the highest margin profile, acting as the profit anchor.
Merchanting (ACS and University Gear Shops) did the heavy lifting, up 25% to $16.3m. Within that:
Mix matters. More merchanting means lower group margins, but Altitude is improving the quality of that book. Merchanting gross profit rose to $3.1m with margin stepping up to 19.1% (HY25: 14.9%) as sites mature and efficiencies land. Services gross profit was $4.6m at a punchy 87.1% margin.
Adjusted operating profit increased 8% to $1.6m, reflecting volume growth and early efficiency gains. The adjusted margin dipped to 7.5% due to the revenue mix leaning towards merchanting – a trade-off investors should expect while UGS sites ramp and ACS pricing is recalibrated.
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On a statutory basis, exceptional charges of $0.8m pushed the group to a small operating loss of $0.5m and a basic EPS of (0.75c) or (0.56p). The exceptional items were mainly leadership transition and reorganisation costs ($279k), a one-off inventory valuation adjustment in Gear Shops ($425k), and other costs ($113k).
Cash was $0.7m and net debt rose to $2.3m, primarily due to working capital invested to open and stock new Gear Shop sites. Inventory increased to $3.0m (HY25: $2.0m) and receivables to $9.6m (HY25: $8.9m). Net operating cash flow before exceptional items was an outflow of $1.1m.
The group has a $4m debt facility that matures on 31 March 2026. The Board plans to discuss renewal in Q1 2026 and, based on initial lender engagement and trading, expects an appropriate facility to be available. That renewal is a key near-term watchpoint.
Management has “recently revised expectations for FY26”, citing softer AIM member purchasing and updated assumptions across ACS and UGS post-review. Trading since period end is said to be consistent with those revised expectations.
Operationally, the realignment in HY26 aims to make delivery more scalable and predictable. As the 2026 platform releases roll out, AIM should support higher-value member and subscription activity. Newly onboarded Gear Shop sites are expected to scale through FY26 and reach full annualised contribution during FY27.
Positives: double-digit revenue growth, improving merchanting margins, a high-margin platform with stable membership, and a leadership team now organised for disciplined execution. The decentralised model should speed decisions and sharpen accountability, which is exactly what you want when scaling a mixed platform-and-merchanting operation.
Less positive: the step-up in net debt and the cash outflow underscore the working-capital intensity of UGS and ACS. Exceptional items were necessary clean-up costs, but they did turn the period loss-making. The macro softness in US branded merchandise is also a headwind for AIM throughput in the near term.
Overall, HY26 reads as a tidy-up and tune-up half. If AIM’s 2026 releases land well and merchanting keeps lifting margins while consuming less cash, earnings quality should improve into FY27. The proof points to watch are cash conversion in H2, the facility renewal in Q1 2026, and traction from the AIM refresh.
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