Altitude Group Plc, the United Kingdom-headquartered parent company of Philadelphia-based promo industry buying group Advertising Industry Mastermind, has reported increased sales but a net loss for 2018.

The earnings announcement came Tuesday, with Altitude saying that annual revenues reached £6.6 million, or about $8.36 million at the current exchange rate, which was up from 2017’s £6.1 million.

Jamie Coggeshall, AI Mastermind; Nichole Stella, Altitude Group Plc

For 2018, Altitude said it posted a loss before taxation of £2.8 million, or about $3.5 million. Adjusted operating loss was about £0.8 million, or approximately $1 million. In 2017, Altitude had an adjusted profit of about £125,000, or some $158,000 at the current exchange rate.

Loss per share in 2018 was 4.38 pence – compared to earnings per basic share of 0.25 pence in 2017. The 2018 losses were “principally due to pre-revenue operating cost investment in the U.S.” and a revenue decline in what Altitude described as its legacy exhibitions and publications business in the U.K., and its legacy SaaS software business in the U.S.

In January, Altitude announced the acquisition of AI Mastermind – a promotional products industry buying group that Altitude says has a total estimated throughput/transaction value across its membership base of $1.9 billion annually. According to Altitude, AI Mastermind currently has 2,108 members – up from 1,917 when the group was acquired by Altitude.

"This acquisition is strategically significant and transformative and has now become the core focus of our strategy as we look to expand our U.S. team, formalizing agreements with key industry suppliers as part of our Preferred Supplier Partner Programme and responding to demand from our AIM members,” Altitude CEO Nichole Stella said in a statement.

Jamie Coggeshall, the founder of AI Mastermind, will remain president of the organization for at least three years from completion of the acquisition, Altitude said.

Altitude said the financial performance announced Tuesday represented unaudited results. Final audited results will be released at a later date.