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Crimson Tide PLC - Interim Results

RNS Number : 3539Z
Crimson Tide PLC
18 September 2020
 

18 September 2020

 

Crimson Tide plc

 

Interim results for the six months ended 30 June 2020

Notice of Investor Presentation

 

Crimson Tide plc ("Crimson Tide" or "the Company"), the provider of the mpro5 solution is pleased to announce its unaudited interim results for the six months ended 30 June 2020.

 

Financial Highlights

·      Turnover increase of 40% to £1.77m (H1 2019: £1.27m)

·      Sales of £225k and COGS of £127k recognised due to IFRS 15

·      Profit before tax increased by 154% to £257k (H1 2019: £101k)

·      EBITDA increase of 72% to £470k (H1 2019: £274k)

·      Strong improvement in net cash position

 

Operational Highlights

·      Strategic focus on transportation and supermarkets / convenience stores succeeding

·      New long term contract with large neighbourhood retailer adding to revenue visibility in H2 and beyond

·      Increasing quality of retained client book

·      Partnerships improving routes to market and scalability shortening new business sales cycle

·      Growing traction from investments in innovation

 

 

Barrie Whipp, Founder & Chairman, commented,

 

"Crimson Tide performed exceptionally well in all areas of the business in the first half. All of our management metrics were achieved and we continued to add quality, long term subscription revenues. Our product development continued, driven by opportunities within our existing and potential customer base. The business is set fair for future growth and profitability. "

 

About the Company

 

Crimson Tide plc is the provider of mpro5 - a leading, cloud-based, cross-platform, SaaS mobile workflow solution. mpro5 enables organisations to drive efficiencies through mobile data capture, Internet of Things sensors, process automation, and real-time analytics. Supporting over 100,000 users across multiple countries and industries. mpro5 is provided on a multi-year subscription basis driving immediate return on investment for its users.

 

Investor Presentation

 

Crimson Tide plc will provide a live presentation to retail investors reporting on the Group's interim results via the Investor Meet Company ("IMC") platform on 22nd September 2020 at 1pm.

 

• The online presentation is open to all existing and potential private shareholders.

 

• Questions can be submitted pre-event via your IMC dashboard or at any time during the live presentation via the "Ask a Question" function. Although the Company may not be in a position to answer every question it receives, it will address the most prominent within the confines of information already disclosed to the market. Responses to the Q&A from the live presentation will be published at the earliest opportunity on the Investor Meet Company platform.

 

• Investor feedback can also be submitted directly to management post-event to ensure the Company can understand the views of all elements of its shareholder base.

 

 

Investors can sign up to Investor Meet Company for free and add to meet Crimson Tide plc via:

 

https://www.investormeetcompany.com/crimson-tide-plc/register-investor

 

Investors who have already registered and added to meet the Company will be automatically invited.

 

Enquiries:

 

Crimson Tide plc                                                                                              +44 1892 542444

Barrie Whipp / Luke Jeffrey

 

finnCap Ltd (Nominated Adviser and Broker)                                              +44 20 7220 0500

Corporate Finance: Julian Blunt / James Thompson

Corporate Broking: Andrew Burdis

 

Alma PR (Financial PR)                                                                                   +44 7780 901979

Josh Royston

 

           

 

 

 

 

Chairman's Statement

 

By all measures, I am very pleased with the performance of Crimson Tide in the first half of 2020. A great deal of focus will be placed upon our financial results; however, the Company has continued to grow into a position of strength in terms of its client base, breadth of offering and quality of contract. Contracts won early in the year do have a more significant effect on full year performance which gives us confidence for the second half and beyond.

 

We continued to add to our base subscriber revenue, particularly in the supermarket and rail sectors with long term contracts. The board is just as focused on retention and extension of its existing book and we have been particularly pleased with our success in this area with existing clients adding both functionality and volume to their subscription bases. Our largest client contracts now extend for at least another three years and we managed to secure one of the country's largest neighbourhood retailers on a five-year contract. The credibility of our client base means that we spend less time in convincing new clients of the benefits of mpro5.

 

Our development team has grown, and we have invested a great deal of time in core improvements to the mpro5 platform. Single Sign On, a new API and further IoT (Internet of Things) development give us opportunities to integrate with enterprise software as well as sensor hardware. These areas, considered cutting-edge and speculative by many, are producing strong interest, which confirms our belief that they will result in contract generation and healthy returns on investment.

 

In some ways, we are limited by our comparative size to the breadth of opportunity open to us. Current plans in terms of the expansion of the capabilities of mpro5 involve further developments in IoT, particularly population movement and density, as well as expansion of the API into other enterprise software. We have agreed an extension of one of our significant healthcare contracts and this has led us to commence work on an entirely new version of mpro5 for health which is scheduled to beta in the coming months. This will allow us to consolidate our healthcare versions as well as attack new opportunities.

 

Our growing partner channel is consistently introducing new opportunities. Whilst this has a minor effect on gross margin, it does mean that the cost of sourcing new business decreases and assists us with onboarding and client satisfaction. We hope to conclude further partnerships in due course, which will have the effect of expanding our sales team and reach.

 

Crimson Tide is well set financially, has a team to deliver further growth and an enviable client base. Thanks to our fantastic team, led by Luke Jeffrey, we have not been affected by recent political and health events, which shows our strength and agility. These facts should see us continue to grow and, with our high margin, long term contracted revenue book and innovative nature, we are confident for the future.

 

 

Barrie Whipp

Founder & Chairman

18 September 2020

 

 

Crimson Tide plc

Condensed Consolidated Statement of Profit or Loss

for the 6 months to 30 June 2020

 

 

Unaudited

6 Months

ended

30 June

2020

 

Unaudited

6 Months

ended

30 June

2019

 

Audited

12 Months

ended 31

December

2019

 

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

Revenue

1,770

 

1,267

 

2,921

 

Cost of providing services

(239)

 

(162)

 

(375)

 

Cost of sales of goods

(127)

 

-

 

-

 

 

 

 

 

 

 

 

Gross Profit

1,404

 

1,105

 

2,546

 

Other income

-

 

-

 

135

 

Administrative expenses

(1,128)

 

(985)

 

(2,285)

 

Operating profit

276

 

120

 

396

 

Finance costs

(19)

 

(19)

 

(44)

 

 

 

 

 

 

 

 

Profit before taxation

257

 

101

 

352

 

Taxation

-

 

-

 

-

 

 

 

 

 

 

 

 

Profit for the period attributable to equity holders of the parent

 

257

 

 

 

101

 

 

352

 

 

 

 

 

 

 

 

Earnings per share

Unaudited

6 Months

ended

30 June

2020

 

Unaudited

6 Months

ended

30 June

2019

 

Audited

12 Months

ended 31

December

2019

 

Basic earnings per Ordinary Share

0.06p

 

0.02p

 

0.08p

 

Diluted earnings per Ordinary Share

0.06p

 

0.02p

 

0.08p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statement of Comprehensive Income

for the 6 months to 30 June 2020

 

 

Unaudited

6 Months

ended

30 June

2020

 

Unaudited

6 Months

ended

30 June

2019

 

Audited

12 Months

ended 31

December

2019

 

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

Profit for the period

257

 

101

 

352

 

 

Other comprehensive income/(loss) for period:

 

 

 

 

 

 

Exchange differences on translating foreign operations

6

 

-

 

(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive profit recognised in the period and attributable to equity holders of parent

 

263

 

 

101

 

 

349

 

 

 

 

 

 

 

 

             

 

Condensed Consolidated Statement of Financial Position at 30 June 2020

 

 

Unaudited

As at

30 June

2020

 

Unaudited

As at

30 June

2019

 

Audited

As at 31 December 2019

 

£000

 

£000

 

£000

ASSETS

 

 

 

 

 

Non-current assets

 

 

 

 

 

Intangible assets

2,247

 

2,019

 

2,118

Equipment, fixtures & fittings

291

 

354

 

325

Right-of-use asset

121

 

176

 

149

Deferred tax asset

32

 

32

 

32

Total non-current assets

2,691

 

2,581

 

2,624

 

 

 

 

 

 

Current assets

 

 

 

 

 

Inventories

6

 

14

 

12

Trade and other receivables

1,018

 

984

 

1,220

Cash and cash equivalents

1,052

 

489

 

320

Total current assets

2,076

 

1,487

 

1,552

 

Total assets

 

4,767

 

 

4,068

 

 

4,176

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

820

 

552

 

474

Borrowings

18

 

33

 

31

Lease liabilities

221

 

155

 

228

Total current liabilities

1,059

 

740

 

733

 

Non-current liabilities

 

 

 

 

 

Borrowings

8

 

23

 

9

Lease liabilities

163

 

284

 

165

Total non-current liabilities

171

 

307

 

174

 

 

 

 

 

 

Total liabilities

1,230

 

1,047

 

907

 

 

 

 

 

 

Net assets

3,537

 

3,021

 

3,269

 

     

 

 

 

 

EQUITY

 

 

 

 

 

Share capital

457

 

457

 

457

Share premium

148

 

148

 

148

Other reserves

480

 

478

 

475

Reverse acquisition reserve

(5,244)

 

(5,244)

 

(5,244)

Retained profits

7,696

 

7,182

 

7,433

 

 

 

 

 

 

Total equity

3,537

 

3,021

 

3,269

 

Condensed Consolidated Statement of Changes in Equity

 

Six-month period ended 30 June 2020 (Unaudited)

 

 

 

 

 

 

Share capital

 

 

Share premium

 

 

Other reserves

Reverse acquisi-tion reserve

 

 

Retained earnings

 

 

 

Total

 

£000

£000

£000

£000

£000

£000

Balance at 31 December 2019

457

148

475

(5,244)

7,433

3,269

 

 

 

 

 

 

 

Profit for the period

-

-

-

              -

257

257

Translation movement

-

-

5

             -

6

11

 

 

 

 

 

 

 

 

Six-month period ended 30 June 2019 (Unaudited)

 

 

 

Share capital

 

 

Share premium

 

 

Other reserves

Reverse acquisi-tion reserve

 

 

Retained earnings

 

 

 

Total

 

£000

£000

£000

£000

£000

£000

Balance at 31 December 2018

457

148

478

(5,244)

7,081

2,920

 

 

 

 

 

 

 

Profit for the period

-

-

-

              -

101

101

Balance at

30 June 2019

 

457

 

148

 

478

 

(5,244)

 

7,182

 

3,021

 

 

 

 

 

 

 

 

  

 

 

Condensed Consolidated Statement of Changes in Equity

 

Year ended 31 December 2019 (Audited)

 

 

 

Share capital

 

 

Share premium

 

 

Other reserves

Reverse acquisi-tion reserve

 

 

Retained earnings

 

 

 

Total

 

£000

£000

£000

£000

£000

£000

 

 

 

 

 

 

 

 

Balance at 1 January 2019

457

148

478

(5,244)

7,081

2,920

 

 

 

 

 

 

 

Profit for the period

-

-

-

              -

352

352

Translation movement

-

-

(3)

-

-

(3)

Balance at

31 December 2019

 

457

 

148

 

475

 

(5,244)

 

7,433

 

3,269

 

 

 

 

 

 

 

 

Condensed Consolidated Statement of Cash flows

For the 6 months to 30 June 2020

 

 

Unaudited

6 Months

ended

30 June

2020

 

Unaudited

6 Months

ended

30 June

2019

 

Audited

12 Months

ended

31 December

2019

 

£000

 

£000

 

£000

Cash flows from operating activities

 

 

 

 

 

Profit before tax

257

 

101

 

352

Adjustments for:

 

 

 

 

 

Amortisation of Intangible Assets

100

 

80

 

171

Depreciation of property, plant and equipment

66

 

74

 

148

Depreciation of right-of-use assets

28

 

-

 

58

Unrealised currency translation movement

6

 

-

 

(3)

Interest expense

19

 

19

 

44

Operating cash flows before movement in working capital and provisions

476

 

274

 

770

Decrease in inventories

6

 

1

 

3

Decrease/(increase) in trade and other receivables

202

 

(81)

 

(317)

Increase/(decrease) in trade and other payables

346

 

(20)

 

(98)

Cash generated by operations

1,030

 

174

 

358

Interest paid in cash

(15)

 

(19)

 

(34)

Net cash from operating activities

1,015

 

155

 

324

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Purchases of property, plant and equipment

(32)

 

(27)

 

(72)

Development expenditure capitalised

(229)

 

(195)

 

(385)

Net cash used in investing activities

(261

)

(222)

 

(457)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Repayments of borrowings

(14)

 

(24)

 

(34)

Repayments of lease liability

(8)

 

(52)

 

(126)

Net cash used in financing activities

(22)

 

(76)

 

(160)

Net increase/(decrease) in cash and cash equivalents

732

 

(124)

 

(293)

 

 

 

 

 

 

Net cash and cash equivalents at beginning of period

320

 

613

 

613

Net cash and cash equivalents at end of period

1,052

 

489

 

320

 

 

 

Crimson Tide Plc

 

Notes to the Unaudited Interim Results for the 6 months ended 30 June 2019

 

1.   General information and basis of preparation

 

Crimson Tide plc is a public company, limited by shares, and incorporated and domiciled in the United Kingdom. The Company has its listing on AIM. The address of its registered office is Oakhurst House, 77 Mt. Ephraim, Tunbridge Wells, Kent, TN4 8BS.

 

Basis of preparation

The condensed consolidated interim financial statements ("interim financial statements") have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting using accounting policies that are consistent with those applied in the previously published financial statements for the year ended 31 December 2019, which have been prepared in accordance with IFRS as adopted by the European Union.

 

The information for the period ended 30 June 2020 has neither been audited nor reviewed and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.

 

The interim financial statements should be read in conjunction with the consolidated financial statements for the year ended 31 December 2019. A copy of the statutory accounts for that period has been delivered to the Registrar of Companies.  The auditor's report on those accounts was unqualified and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.

 

Going concern

The financial statements are prepared on the going concern basis. The financial position of the Company, its cash flows and liquidity position are described in the interim financial statement and notes. The Company has the financial resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report.

 

2.  Revenue and operating segments

 

The Group has two main regional centres of operation; one in the UK, the other in Ireland but the Group's resources, including capital, human and non-current assets are utilised across the Group irrespective of where they are based or originate from. The Board is the chief operating decision maker ("CODM"). The CODM allocates these resources based on revenue generation, which due to its high margin nature and the Group's reasonably fixed overheads, in turn drives profitability and cashflow generation. The Board consider it most meaningful to monitor financial results and KPIs for the consolidated Group, and decisions are made by the Board accordingly.

 

In due consideration of the requirements of IFRS 8 Operating Segments, the Board consider segmental reporting by (i) business activity, by turnover, and (ii) region, by turnover to be appropriate. Business activity is best split between (i) the strategic focus of the business, i.e. mobility solutions and the resulting development services that emanate from that and (ii) hardware sales to existing customers.

 

Segment information for the reporting periods is as follows:

 

 

 

 

 

 Unaudited

 6 Months

ended

30 June

2020

 

 

Unaudited

 6 Months

ended

30 June

2019

 

 

Audited

 12 Months

ended 31

December

2019

 

Revenue by business activity

 

 

 

Mobility solutions

1,545

1,267

2,921

Hardware sales under IFRS 15

225

-

-

 

1,770

1,267

2,921

 

Hardware sales were not material in prior periods.

 

Revenue can be further analysed by geographic reason as follows:

 

 

 

 Unaudited

 6 Months

ended

30 June

2020

 

 

Unaudited

 6 Months

ended

30 June

2019

 

 

Audited

 12 Months

ended 31

December

2019

 

Revenue by geographic region

 

 

 

UK

1,640

1,139

2,261

Ireland

130

128

260

 

1,770

1,267

2,921

 

 

3.    Earnings per share

 

The calculation of the basic earnings per share is based on the profit attributable to ordinary shareholders and the weighted average number of ordinary shares in issue during the period.

 

The calculation of the diluted earnings per share is based on the profit per share attributable to ordinary shareholders and the weighted average number of ordinary shares that would be in issue, assuming conversion of all dilutive potential ordinary shares into ordinary shares. 

 

Reconciliations of the profit and weighted average number of ordinary shares used in the calculation are set out below: 

 

 

 

 

 

 

 Unaudited

 6 Months

ended

30 June

2020

 

 

Unaudited

 6 Months

ended

30 June

2019

 

 

Audited

 12 Months

ended 31

December

2019

 

Earnings per share

 

 

 

Reported profit (£000)

257

101

352

Reported basic earnings per share (pence)

0.06

0.02

0.08

Reported diluted earnings per share (pence)

0.06

0.02

0.08

 

 

 

Unaudited

 6 Months

ended

30 June

2020

 

 

Unaudited

 6 Months

ended

30 June

2019

 

 

Audited

 12 Months

ended 31

December

2019

 

 

No. 000

No. 000

No. 000

Weighted average number of ordinary shares

 

 

 

Shares in issue at start of period

457,486

457,486

457,486

Effect of shares issued during the period

-

-

-

Weighted average number of ordinary

shares for basic EPS

 

457,486

 

457,486

 

457,486

Effect of share options outstanding

-

9,250

7,427

Weighted average number of ordinary

shares for diluted EPS

 

457,486

 

466,736

 

464,913

 

 

 

 

 

 

 

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