**Summary of Altitude Group PLCs Half-Year/Interim Report (HY26) for the Six Months Ended 30 September 2025**
**Strategic Highlights**
**Leadership Changes** Strengthened the Groups capability with a focus on margin improvement and disciplined execution.
**Restructuring** Targeted restructuring tightened commercial focus and improved operational alignment, enhancing value delivery across the ecosystem.
**ACS Review** Completed a structured review of ACS to sharpen commercial discipline, enhance margin delivery, and align affiliate activity with the AIM platform.
**UGS Review** A portfolio-wide review of UGS identified actions to improve efficiency and future margin performance, supporting a more scalable model.
**Decentralized Model** Introduced a decentralized operating model in HY26, enhancing decision-making speed and operational discipline for scalable growth into FY27.
**Financial Highlights**
**Revenue Growth** Total revenue increased by 18% to $21.6 million, driven by strong merchanting performance from new Gear Shop sites and ACS affiliate network expansion.
**Profit Growth** Gross profit rose by 16% to $7.7 million, and adjusted operating profit increased by 8% to $1.6 million, supported by higher merchanting volumes.
**Margin Moderation** Overall margins moderated due to the greater weighting of lower-margin merchanting revenues and the early-stage contribution of new Gear Shop sites.
**Net Debt Increase** Net debt rose to $2.3 million, reflecting working capital investment for new Gear Shop sites and increased inventory.
**Operational Highlights**
**AIM Platform** Stable distributor subscribers and members (c.2,500) with aggregated revenues of c.$2.3 billion. Early delivery of AI-first services enhanced forecasting, pricing insight, and workflow automation.
**Merchanting (ACS & UGS)** ACS achieved continued growth with annualized run-rate revenues of $23.7 million. UGS expanded with seven new Gear Shop sites, bringing the total to 29 programs across 47 campus locations.
**Executive Chairmans Report**
**Strategic Realignment** HY26 focused on strategic realignment, establishing clearer priorities, and sharpening operational focus to improve margin quality and business foundations.
**Leadership Strengthening** New leadership team combines industry expertise with financial, technology, and governance capabilities, positioning the Group for sustainable growth.
**Operational Performance** Resilient operational delivery with stable platform performance, improved workflow consistency, and progress across ACS and UGS.
**Outlook** Focus on profitable growth in AIM, disciplined execution in ACS and UGS, and improved earnings quality and cash generation. Revised expectations for FY26 due to softer AIM member purchasing activity and macro-economic conditions.
**Financial Performance**
**Revenue** Total revenue grew by 18% to $21.6 million, with merchanting revenue increasing by 25% to $16.3 million.
**Gross Profit** Increased by $1.0 million to $7.7 million, with a slight margin reduction due to revenue mix changes.
**Operating Profit** Adjusted operating profit rose by 8% to $1.6 million, with margins moderating due to revenue mix.
**Balance Sheet** Net debt increased to $2.3 million due to working capital investments, particularly in inventory.
**Segmental Performance**
**North America** Strong performance with adjusted operating profit of $2.3 million.
**UK and Europe** Adjusted operating loss of $193,000.
**Central** Adjusted operating loss of $532,000.
**Exceptional Charges**
Totaled $0.8 millionincluding leadership change costsinventory valuation adjustmentsand bad debt write-offs.
**Earnings Per Share**
Basic and diluted loss per share of (0.75c) due to increased exceptional charges.
**Going Concern**
The Group has sufficient liquidity to meet obligations, supported by a $4 million debt facility, with discussions planned for renewal in Q1 2026.
**Conclusion**
Altitude Group PLCs HY26 results reflect strategic realignment, revenue growth, and operational resilience. Despite margin moderation and increased net debt, the Group is positioned for sustainable growth with a strengthened leadership team, improved operational focus, and a scalable model for FY27 and beyond.
| Metric | H1 2026 | H1 2025 | % Change |
|---|---|---|---|
| Total Revenue | $21.6m | $18.3m | 18% |
| - Services | $5.3m | $5.4m | (1%) |
| - Merchanting | $16.3m | $13.0m | 25% |
| Gross Profit | $7.7m | $6.7m | 16% |
| - Services | $4.6m | $4.8m | (3%) |
| - Merchanting | $3.1m | $1.9m | 61% |
| Adjusted Operating Profit | $1.6m | $1.5m | 8% |
| Cash and Cash Equivalents | $0.7m | $0.4m | 61% |
| Net Debt | $2.3m | $0.8m | 188% |
| Net Assets | $15.1m | $14.0m | 8% |