Crimson Tide PLC Trading Statement (9355F)
February 27 2018 - 2:00AM
UK Regulatory
TIDMTIDE
RNS Number : 9355F
Crimson Tide PLC
27 February 2018
CRIMSON TIDE PLC
("Crimson Tide" or "the Company")
TRADING AND STRATEGIC UPDATE
Crimson Tide, the provider of mpro5 Smart Mobility as a Service,
is pleased to provide this trading update for the year ended 31
December 2017, and to bring the market up to date on its plans for
continued expansion.
Financial
The Company had a very positive year in 2017. Revenue for the
year ended December 31, 2017 is expected to total GBP2.3 million,
an increase of approximately 23% on the previous year.
The Board's strategy is one of continued investment in the
growth of the business and in particular the sales and marketing
resources to ensure the Company is positioned to take full
advantage of the opportunities that are emerging. Company headcount
has doubled over 18 months, to address growth in demand for our
products. Nothwithstanding the increased cost associated with this,
profit before tax for 2017 is still expected to be similar to 2016
and has been achieved as a result of both revenue growth and
increased gross margin.
Cash generation from organic business continues to be strong,
and balances have been maintained notwithstanding a reduction of
some GBP250k in debt on finance leases and funding investments in
the Middle East, Northern Europe and the USA. The Company has no
core debt and has approximately GBP750k in cash.
Strategy and Outlook for 2018
From a strategic standpoint, the Company is launching its mpro5
Internet of Things (IOT) service during the current quarter. The
Directors believe there is a clear opportunity to supply this new,
sensor-based mpro5 module to existing, long-term, contracted
clients. The market for cloud, mobility and IOT is undoubted and
mpro5 provides clients with a fully inclusive service on a
long-term, contracted, subscription basis.
In healthcare, the Company is making its first inroads into the
NHS, where there is enormous scope for mpro5 to assist in areas
from facilities management to patient care. The Company is
recruiting a government-sector sales executive to pursue this
opportunity as well as securing additional sales resources in the
North of the UK and in Ireland.
The Directors believe that demand for mpro5 is stronger than at
any previous time, as demonstrated by the number of opportunities
in the pipeline, and that to maximise the benefits of this positive
position, the Company should continue to invest in sales and
marketing in 2018. It is anticipated that the percentage growth in
topline revenue will be similar in 2018, then rise in the following
two years. The Company strategy is to continue to expand in 2018 in
order to facilitate the growth in the business and re-invest the
increased cash generation into a larger operation whilst
maintaining profit before tax at current levels in 2018.
Barrie Whipp, Executive Chairman of Crimson Tide, commented:
"The Directors are very encouraged by our growth and believe that
we should continue to pursue aggressively the opportunities we have
developed. The Board has targeted growth at the top-line level
while continuing to plough a proportion of profits back into the
business. Our IOT module, combined with our geographic expansion,
offers tremendous upside. We are also seeing traction in Northern
Europe and the Middle East and I am confident that these
opportunities will increase this year with both existing and new
clients. The Directors are very optimistic for the future."
For further information:
Crimson Tide plc
Barrie Whipp/Steve Goodwin
01892 542 444
WH Ireland Limited
James Joyce /James Bavister
020 7220 1666
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTSEWFEMFASEFE
(END) Dow Jones Newswires
February 27, 2018 02:00 ET (07:00 GMT)
Crimson Tide (LSE:TIDE)
Historical Stock Chart
From Apr 2024 to May 2024
Crimson Tide (LSE:TIDE)
Historical Stock Chart
From May 2023 to May 2024