TIDMTIDE
RNS Number : 0266Q
Crimson Tide PLC
07 September 2017
Crimson Tide plc
("Crimson Tide" or "the Company")
Interim Results for the six months ended 30 June 2017
Crimson Tide, the provider of mpro5 - smart mobility as a
service (AIM: TIDE.L), announces its unaudited interim results for
the six months ended 30 June 2017.
Highlights
-- Revenues 32% up on 1H 2016 (GBP1,114k vs. GBP845k)
-- Profit Before Tax 16% higher at GBP142k (1H 2016: GBP122k);
-- Cash generated from operations over 70% higher than 1H 2016 (GBP365k vs GBP212k)
-- Good progress with planned international expansion
Barrie Whipp, Executive Chairman, commented,
"We have invested in sales & marketing resources to ensure
that we can take Crimson Tide to the next level. Our performance
has been very good and we are very excited about the latest release
of mpro5 which is a sea change in terms of performance and
usability. The breadth of mpro5's capabilities is starting to be
recognised in new markets with a wide range of new opportunities.
We are very excited for the future"
Enquiries:
Crimson Tide plc Barrie
Whipp / Steve Goodwin 01892 542444
WH Ireland Limited James
Joyce / James Bavister 020 7220 1666
Chairman's Statement
In the first half of 2017, the Company concentrated on setting
out to expand mpro5's reach into both existing markets and new
economies. This strategy is starting to see early results in a
number of new areas.
The mpro5 mobile application has been upgraded to a brand new
development platform. Whilst continuing to leverage Microsoft
Azure's capabilities we have changed to a new framework developed
in Angular and Ionic. The changes in terms of performance and
usability is dramatic, bringing the power of our extremely robust
infrastructure to a much more intuitive and fast experience for our
users. We are working on new Internet of Things ("IoT")
opportunities for mpro5 and believe that we have just as much to
excite clients as organisations that only specialise in this
nascent area.
We are seeing opportunities develop in all of the overseas
markets that we have invested in. We are pleased that our
investments have been tactical. Rather than setting up unnecessary
infrastructure we have focused on finding individuals who can
exploit our existing uses of mpro5 in overseas markets and using
our existing technical staff to assist them in gaining
traction.
In the UK & Ireland, we have been working hard to expand our
footprint and a number of enterprise level transactions are under
way. Our turnover has increased quite significantly and, of course,
is now almost entirely comprised of long term and contracted
subscriber revenue.
Our new geographic bases in the UAE, Netherlands, US and
Australia are being progressed by parties that the Company already
knew or that its associates have introduced. We therefore have a
level of trust that matters are being progressed in our corporate
style and with our core values in mind. There is at least as much
potential in these markets as in our existing footprint.
Our profitability increased during the period, however this was
not the Board's primary consideration for 2017. We wanted to
continue to be profitable in an investment and expansion stage of
our development and I am particularly pleased that we achieved this
balance. It is our intention to continue to invest and expand and
we are mindful of not properly exploiting the opportunities in
front of us. The message to our team is that we are aiming to be a
much larger entity in the coming years than our previous base
allowed.
This year has presented new challenges, but more importantly
significantly greater opportunities. We believe we are well set for
continued growth and are continuing to prosecute a bolder strategy.
Stakeholders have been extremely supportive of our investment
programme and we will continue to explore these opportunities and
support our new staff and partners in elevating the Company to the
next level.
Barrie Whipp
Executive Chairman
7th September 2017
Operating and Financial Review
I am pleased to provide a review our operating and financial
performance over the first half of 2017 and comment on our results
for the six months to 30 June 2017.
Operating Review
The Company accelerated plans to expand internationally during
the latter part of 2016 and these efforts have continued during the
first half of 2017. At the same time, further organic growth in the
UK has underpinned the resulting higher operating costs.
Looking in turn at these two strategic routes to higher growth,
the Company is currently progressing well with expansion plans in
continental Europe. We have already won new business through the
efforts of our Netherlands based sales resource and are optimistic
that our larger UK customers will use our mpro5 services in their
European operations. Further afield in the UAE, our agreement with
the British Centres for Business has started to produce enterprise
level opportunities and to help progress these we now have a
dedicated resource based in Dubai. In the US, we are participating
in the CARIN Alliance, a multi-sector collaborative, working to
advance the exchange of health information and deliver solid
pharmacovigilance and digitalised healthcare and in Australia, from
where our Technical Director has recently returned from a very
encouraging business trip, our partner, Mobilise IT, is working on
opportunities we have identified.
It is worth reminding shareholders that our mpro5 solution is an
enterprise class mobility platform that mobilises our customers'
workflows so that staff in the field using for example an Apple,
Android or Microsoft smartphone or tablet are empowered to get
their work completed more efficiently, eliminating errors and
greatly increasing their productivity. All data collected by staff
in the field is synchronised to Microsoft Azure Cloud and
immediately available via a dedicated mpro5 website allowing office
based management teams access to schedule work and report via real
time dashboards, instant alerts, and emailed reports. Our solution
can utilise photos, GPS positioning, bar code scans and signatures
and this financial year, we are investing in Internet of Things
("IoT") technology to potentially use smart sensors from motion to
temperature & humidity, and Bluetooth devices for intelligent
and proactive data collection. Customers contract to use these
services, simply paying a fixed monthly subscription, for an agreed
initial term.
The quality of our mpro5 solution and the level of service and
support received by new and existing customers has continued to
drive organic growth. Subscription contracts are frequently renewed
on or before the end of their initial term by customers to cater
for additional users or secure the service for a further term so
that their core processes, including mpro5, are safeguarded.
During the period, we have added resources to the technical and
support operations so that mpro5 can continue to be rolled out to
any new and additional users without delay. In the same vein, we
have strengthened our marketing function to ensure our opportunity
pipeline, both in the UK and further afield, continues to build. In
summary, 2017 to date has seen an operational step change to
prepare the business for new levels of activity.
Financial Review
Turnover for the six months to 30 June 2017 increased to
GBP1,114k, up 32% on the same period in 2016 (1H 2016: GBP845k).
With gross profit margins remaining over 90% and operating margins
before depreciation, amortisation and interest of 32%, the business
continues to show the benefits of its high operational gearing with
additional revenues adding significantly to net profits.
After depreciation, amortisation and interest costs, the Group
achieved a profit before tax of GBP142k in the first half 2017 (1H
2016: GBP122k).
There have been no changes to Crimson Tide's accounting policies
which can be found in the notes to the published 2016 Consolidated
Financial Statements available on our website,
www.crimsontide.co.uk.
Future Prospects
Our investments to accelerate future growth have largely
contributed to the 31% increase in overheads over the same period
last year, and while there will be a lag between making these
investments and the resulting growth, the Board are convinced that
this strategy will be to the medium term benefit of shareholders.
We continue to work hard to ensure that we achieve this
success.
Stephen Goodwin
Finance Director
7th September 2017
Crimson Tide plc
Unaudited Consolidated Income Statement for the 6 months to 30
June 2017
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 30 June 31
2017 2016 December
2016
GBP000 GBP000 GBP000
Revenue 1,114 845 1,860
Cost of Sales (109) (71) (159)
Gross Profit 1,005 774 1,701
Overhead expenses (647) (493) (1,009)
Earnings before interest,
tax, depreciation & amortisation 358 281 692
Depreciation & Amortisation (189) (142) (303)
Profit from operations 169 139 389
Interest income - - -
Interest payable and similar
charges (27) (17) (37)
---------- ---------- -----------
Profit before taxation 142 122 352
Taxation - - (4)
---------- ---------- -----------
Profit for the year attributable
to equity holders of the
parent 142 122 348
========== ========== ===========
Earnings per share Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 30 June 31
2017 2016 December
2016
Basic and diluted earnings
per Ordinary Share 0.03p 0.03p 0.08p
(see Note 2)
Unaudited Consolidated Statement of Comprehensive Income for the
6 months to 30 June 2017
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 30 June 31
2017 2016 December
2016
GBP000 GBP000 GBP000
Profit for the period 142 122 348
Other comprehensive income/(loss)
for period:
Exchange differences on
translating foreign operations (2) 1 1
Total comprehensive profit
recognised in the period
and attributable to equity
holders of parent 140 123 349
========== ========== ===========
Unaudited Consolidated Statement of Financial Position at 30
June 2017
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2017 2016 2016
GBP000 GBP000 GBP000
Fixed Assets
Intangible assets 1,592 1,452 1,522
Equipment, fixtures & fittings 698 458 750
2,290 1,910 2,272
Current Assets
Inventories 8 14 7
Trade and other receivables 686 495 636
Cash and cash equivalents 861 661 878
Total current assets 1,555 1,170 1,521
Total assets 3,845 3,080 3,793
Equity and liabilities
Equity
Share capital 453 447 453
Share premium 112 28 112
Other reserves 420 422 422
Reverse acquisition reserve (5,244) (5,244) (5,244)
Retained earnings 6,901 6,533 6,759
Total Equity 2,642 2,186 2,502
Creditors
Amounts falling due within
one year 831 638 769
Creditors
Amounts falling due after
more than one year 372 256 522
Total liabilities 1,203 894 1,291
Total equity and liabilities 3,845 3,080 3,793
Unaudited Consolidated Statement of Changes In Equity at 30 June
2017
Reverse
Capital acquisi-tion
Share Redemption Share Other reserve Retained
capital Reserve premium reserves earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance
at 31 December
2015 7,335 49 1,090 421 (5,244) (1,618) 2,033
Profit for
the period - - - - - 122 122
Capital
reconstruction
(*) (6,890) (49) (1,090) - - 8,029 -
Share options
exercised 2 - 28 - - - 30
Translation
movement - - - 1 - - 1
Balance
at
30 June
2016 447 - 28 422 (5,244) 6,533 2,186
Balance
at 31 December
2016 453 - 112 422 (5,244) 6,759 2,502
Profit for
the period - - - - - 142 142
Translation
movement - - - (2) - - 1
Balance
at
30 June
2017 453 - 112 420 (5,244) 6,901 2,642
---------- ------------- ---------- ----------- -------------- ----------- --------
(*) At the Company's General Meeting on 26 January 2016
shareholders approved plans to undertake a capital reconstruction,
the purpose of which was to create positive retained earnings in
the Balance Sheet to allow the Company to, if appropriate, pay
dividends in the future. Shareholders also approved future share
buy-backs. Following a court hearing on 24 February 2016 the court
confirmed the reduction of capital of the Company. The nominal
value of each Ordinary Share in the Company reduced from one penny
to 0.1 pence per share and the Company's Deferred Shares of 19
pence each, Share Premium Account and Capital Redemption Reserve
were cancelled. Trading in the shares with a nominal value of 0.1
pence commenced on 25 February 2016.
Unaudited Consolidated Statement of Cashflows for the 6 months
to 30 June 2017
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 30 June 31 December
2017 2016 2016
GBP000 GBP000 GBP000
Cash flows from operating
activities
Profit before tax 142 122 352
Adjustments for:
Amortisation of Intangible
Assets 56 48 105
Depreciation of equipment,
fixtures and fittings 133 94 198
Profit on Sale of Assets - - -
Net Interest 27 17 37
Operating cash flows before
movement in working capital
and provisions 358 281 692
(Increase)/decrease in
inventories (1) 1 8
(Increase)/decrease in
trade and other receivables (50) 134 (2)
Increase/(decrease) in
trade and other payables 58 (204) (203)
Cash generated from operations 365 212 495
Taxes paid - - (4)
Net cash generated in operating
activities 365 212 491
--------- --------- ------------
Cash flows used in investing
activities
Purchase of fixed assets (207) (150) (675)
Sale of fixed assets - - -
Net cash used in investing
activities (207) (150) (675)
--------- --------- ------------
Cash flows from financing
activities
Net proceeds from issues
of shares - 30 120
Interest paid (27) (17) (37)
Net (decrease)/increase
in borrowings (150) 48 422
Net cash (used in)/from
financing activities (177) 61 505
--------- --------- ------------
Net (decrease)/increase
in cash and cash equivalents (19) 123 321
Net cash and cash equivalents
at beginning of period 859 538 538
--------- --------- ------------
Net cash and cash equivalents
at end of period 840 661 859
--------- --------- ------------
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 30 June 31 December
2017 2016 2016
GBP000 GBP000 GBP000
Analysis of net funds:
Cash and cash equivalents 861 667 878
Bank overdraft (21) (6) (19)
840 661 859
Other borrowings due within
one year (306) (198) (306)
Borrowings due after one
year (372) (256) (522)
Net funds 162 207 31
Crimson Tide Plc
Notes to the Unaudited Interim Results for the 6 months ended 30
June 2017
1. Basis of preparation of interim report
The information for the period ended 30 June 2017 does not
constitute statutory accounts as defined in section 434 of the
Companies Act 2006. It has been prepared in accordance with the
accounting policies set out in, and is consistent with, the audited
financial statements for the twelve months ended 31 December 2016.
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.
2. 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 Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
30 June 30 June December
2017 2016 2016
Basic and diluted earnings
per share
Reported profit (GBP000) 142 122 348
Reported profit per
share (pence) 0.03 0.03 0.08
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
30 June 30 June December
2017 2016 2016
No. 000 No. 000 No. 000
Weighted average number
of ordinary shares:
Shares in issue at
start of period 453,486 445,486 445,486
Effect of shares issued
during the period - 197 1,945
------------ ------------ ------------
Weighted average number
of ordinary shares 453,486 445,683 447,431
------------ ------------ ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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