Altitude Group PLC shares jumped on Tuesday after it said it signed a number of contracts, with a combined gross revenue value of $30 million.

Altitude is an operator of a marketplace for the promotional products industry. Its shares were up 16% to 47.70 pence each in London on Tuesday afternoon.

Altitude said it has signed ‘multiple new significant contracts’, as it continues to grow its footprint across the US via its Merchanting programmes.

The company expects the contracts to generate an expected total combined gross revenue value of about $30 million, including $8 million signed and subject to state clearance, throughout their five-year terms.

It added that all the new contracts are expected to begin generating revenue for the company in the first half of the next financial year ending March, 2024.

‘These new major contract wins have a material impact on the group and demonstrate the success of the group’s investment throughout this financial year in the development and growth of its pipeline, yielding positive results across its Merchanting programmes,’ Altitude said.

It added that ‘a number of other major contract of material value’ are in late-stage legal negotiations.

Altitude also said that it has had a ‘strong’ close to the year and it now expects financial 2023 adjusted earnings before interest, tax, depreciation and amortisation to be ahead of market expectations. In February, the company has said external market consensus for the year ending March 31 was adjusted Ebitda of £1.5 million. In financial year 2022, the company posted an adjusted operating profit of £1.1 million.

Looking ahead, the company expects trading in financial 2024 to start strongly as a result of the new contracts. ‘The board are very confident in improving on Altitude’s record profitability,’ it added.

Chief Executive Officer Nichole Stella said: ‘We are delighted to be starting our new financial year with these significant new contracts, showcasing rapid progress in the group’s ability to grow its long-term revenue base. With investment focused on business development, FY23 has proven to be a pivotal year for the Group, resulting in excellent visibility of revenues through these multimillion-dollar long-term contract wins.’

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