TIDMTIDE
RNS Number : 4804K
Crimson Tide PLC
22 September 2016
Crimson Tide plc
("Crimson Tide" or "the Company")
Interim Results for the six months ended 30 June 2016
Crimson Tide, a leading service provider of mobile data
solutions for business (AIM: TIDE.L) announces its unaudited
interim results for the six months ended 30 June 2016.
Highlights
-- Profit Before Tax doubled to GBP122k (1H 2015: GBP60k);
-- Revenues 25% up on 1H 2015 (GBP845k vs. GBP673k)
-- More significant customers added
-- Balance Sheet reconstruction completed
Barrie Whipp, Executive Chairman, commented,
"We have continued to build and grow mpro5 into, in our opinion,
the leading full service mobility service for organisations. We are
expanding our team and our footprint and commencing an investment
programme for further growth, both in our existing markets and
overseas."
Enquiries:
Crimson Tide plc Barrie
Whipp / Steve Goodwin 01892 542444
WH Ireland Limited James
Joyce / James Bavister 020 7220 1666
Chairman's Statement
I am very pleased to report on the Company's progress for the
first half of 2016. Once again, we exceeded all of our key
indicators and of particular note, Profit after Tax for the period
increased by 100% to GBP122k on increased turnover. We have
achieved record subscriber numbers but our most recent contract
wins are enterprise level agreements which place less relevance on
user numbers and more on net revenues.
We have consolidated agreements with leading facilities
management groups and can report that mpro5 is used in over 15,000
sites in the UK and Ireland. Our long term revenue has continued to
increase and is underpinned by significant contracts. Our retail
implementations have gone well and there is more opportunity in
this sector, where we are offering new solutions to our
clients.
Our growth is reflected not only in profitability but also in
terms of cash where we are well placed. Lombard Technical Services
continue to support our contracts where devices are required and we
remain confident of our ability to fulfil contract wins.
We are now starting to invest in expansion of our sales channels
in the UK and overseas with confidence. We expect this strategy to
start to bear more fruit late in the second half and the coming
year and is focused upon four or five areas where we believe that
mpro5 can fulfil demand.
I am encouraged by our activities with Vodafone in Ireland and
we are hopeful of expanding this relationship in the UK and
overseas.
Technically mpro5 is in extremely good shape. We have added
modules to the service based upon customer demand and have an
extremely high satisfaction rating. We are currently working on a
significant platform change for the mobile application investing in
the latest Angular 2 framework. We are also adding Internet of
Things capabilities into mpro5 and have a new proprietary alerting
platform, which has replaced a third party product, thereby
increasing margins further.
In the healthcare world, we are progressing with a range of
transactions and are hopeful of further news soon. There is little
doubt that pharma offers enormous opportunities for mpro5.
Our capital reorganisation was successful and allows the
Directors to recommend a dividend when appropriate.
The board is extremely pleased with the Company's progress. The
positive decision to invest in further growth opportunities is
designed to grow our top line revenues which, with our high
margins, should see bottom line improvements after absorbing short
term increases in sales and marketing overhead. For the first time
we will see Crimson Tide with sales channels outside the UK &
Ireland. We are excited for the future.
Barrie Whipp
Executive Chairman
22 September 2016
Operating and Financial Review
I am pleased to review our operating and financial performance
over the first half of 2016 and comment on our results for the six
months to 30 June 2016.
Operating Review
The year commenced on a very positive note following the earlier
than expected full rollout of the Company's mpro5 solution with one
of the country's leading retailers. This highlighted two factors;
one, the ease with which we were able to organise and install our
mpro5 solution nationwide and two, the value placed on mpro5 by our
customers, immediately allowing them to reap the operational and
financial benefits from adopting the solution. mpro5 has since
started to be implemented elsewhere in the retail sector and we
announced in July 2016 a new pilot with another retailer to monitor
store safety, cleanliness and security.
The flexibility of our mpro5 solution means it is able to
generate value across a wide range of different markets. Elsewhere,
in healthcare, we remain very encouraged by the number of
opportunities we are working on including a pilot project for the
serialisation and verification of pharmaceutical products. Here,
mpro5 provides barcode scanning and cloud--based synchronisation
services via Microsoft Azure, which enables real--time information
to be uploaded, quickly verified and communicated to users. Job
scheduling, tracking, bespoke dashboards, all add value ensuring
mobile users are able to work most efficiently. Our investment in
mpro5 continues and we aim to make sure it remains a leading
solution as technological advances continue apace.
The nature of some of our business is moving to bigger,
enterprise solutions. The customer's commitment is unchanged,
signing a subscriber agreement for typically an initial thirty-six
month term. However, our pricing in these cases reflects the large
numbers of users expected. Furthermore, we are finding more
opportunities abroad and as mentioned in the Chairman's statement,
we are investing in overseas sales resources and related marketing
to be able to progress these most effectively. The positive
cashflows we are generating together with the security of funding
available from Lombard Technical Services to finance devices
provided as part of our solution, means the Company's directors are
comfortable with this increased expenditure. There may as a result
be some short term impact on our rate of profitability growth but
we expect over the medium term to generate additional revenues and
greater profits.
Financial Review
Turnover for the six months to 30 June 2016 increased to
GBP845k, up 25% on the same period in 2015. With gross profit
margins still over 90% and operating margins before depreciation,
amortisation and interest of 33%, up from 29% in 1H 2015, the
additional investments previously made in staff have been more than
compensated for by increased profitability.
After depreciation, amortisation and interest costs, the Group
achieved a profit of GBP122k in the first half 2016 (1H 2015:
GBP60k).
There have been no changes to Crimson Tide's accounting policies
which can be found in the notes to the published 2015 Consolidated
Financial Statements available on our website,
www.crimsontide.co.uk.
It should be noted, however, that early in 2016, the Company
completed its capital reconstruction and now has 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 at the General Meeting, again if
thought by the directors to be appropriate. This exercise together
with the positive cashflows generated by the Group means the
financial position of Crimson Tide looks favourable at the half
year and has further improved since as net funds have continued to
increase.
Future Prospects
The outlook for the business remains very positive. Our mpro5
solution has continually proved a sound investment for our
customers even as these customers have become more sizable and/or
more geographically spread. The Board and team at Crimson Tide are
working hard on behalf of shareholders to ensure that our
reputation and success continue to advance.
Stephen Goodwin
Finance Director
22 September 2016
Crimson Tide plc
Unaudited Consolidated Income Statement for the 6 months to 30
June 2016
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 30 June 31
2016 2015 December
2015
GBP000 GBP000 GBP000
Revenue 845 673 1,402
Cost of Sales (71) (62) (104)
Gross Profit 774 611 1,298
Overhead expenses (493) (413) (868)
Earnings before interest,
tax, depreciation & amortisation 281 198 430
Depreciation & Amortisation (142) (132) (245)
Profit from operations 139 66 185
Interest income - - -
Interest payable and similar
charges (17) (6) (17)
---------- ---------- -----------
Profit before taxation 122 60 168
Taxation - - -
---------- ---------- -----------
Profit for the year attributable
to equity holders of the
parent 122 60 168
========== ========== ===========
Earnings per share Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 30 June 31
2016 2015 December
2015
Basic and diluted earnings
per Ordinary Share 0.03p 0.01p 0.04p
(see Note 2)
Unaudited Consolidated Statement of Comprehensive Income
for the 6 months to 30 June 2016
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 30 June 31
2016 2015 December
2015
GBP000 GBP000 GBP000
Profit for the period 122 60 168
Other comprehensive income/(loss)
for period:
Exchange differences on
translating foreign operations 1 (5) (5)
Total comprehensive profit
recognised in the period
and attributable to equity
holders of parent 123 55 163
========== ========== ===========
Unaudited Consolidated Statement of Financial Position at 30
June 2016
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
Fixed Assets
Intangible assets 1,452 1,308 1,373
Equipment, fixtures & fittings 458 390 527
1,910 1,698 1,900
Current Assets
Inventories 14 11 15
Trade and other receivables 495 346 634
Cash and cash equivalents 661 499 539
Total current assets 1,170 856 1,188
Total assets 3,080 2,554 3,088
Equity and liabilities
Equity
Share capital 447 7,335 7,335
Capital redemption reserve - 49 49
Share premium 28 1,090 1,090
Other reserves 422 421 421
Reverse acquisition reserve (5,244) (5,244) (5,244)
Retained earnings 6,533 (1,726) (1,618)
Total Equity 2,186 1,925 2,033
Creditors
Amounts falling due within
one year 638 513 806
Creditors
Amounts falling due after
more than one year 256 116 249
Total liabilities 894 629 1,055
Total equity and liabilities 3,080 2,554 3,088
Unaudited Consolidated Statement of Changes In Equity at 30 June
2016
Capital Reverse
redemp-tion acquisi-tion
Share reserve Share Other reserve Retained
capital premium reserves earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance
at 31 December
2014 7,335 49 1,090 426 (5,244) (1,786) 1,870
Profit for
the period - - - - - 60 60
Translation
movement - - - (5) - - (5)
Balance
at
30 June
2015 7,335 49 1,090 421 (5,244) (1,726) 1,925
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
---------- ------------- ---------- ----------- -------------- ----------- --------
(*) 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 2016
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
Cash flows from operating
activities
Profit before tax 122 60 168
Adjustments for:
Amortisation of Intangible
Assets 48 52 90
Depreciation of equipment,
fixtures and fittings 94 80 155
Profit on Sale of Assets - - -
Net Interest 17 6 17
Operating cash flows before
movement in working capital
and provisions 281 198 430
Decrease in inventories 1 19 15
Decrease/(increase) in
trade and other receivables 134 217 (71)
(Decrease)/increase in
trade and other payables (204) (73) 147
Cash generated from operations 212 361 521
Taxes paid - - -
Net cash generated in operating
activities 212 361 521
--------- --------- ------------
Cash flows used in investing
activities
Purchase of fixed assets (150) (230) (552)
Sale of fixed assets - - -
Interest received - - -
Net cash used in investing
activities (150) (230) (552)
--------- --------- ------------
Cash flows from financing
activities
Net proceeds from issues
of shares 30 - -
Interest paid (17) (6) (17)
Net increase in borrowings 48 135 347
Net cash from/(used in)
financing activities 61 129 330
--------- --------- ------------
Net increase in cash and
cash equivalents 123 260 299
Net cash and cash equivalents
at beginning of period 538 239 239
--------- --------- ------------
Net cash and cash equivalents
at end of period 661 499 538
--------- --------- ------------
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
Analysis of net funds:
Cash and cash equivalents 667 499 539
Bank overdraft (6) - (1)
661 499 538
Other borrowings due within
one year (198) (78) (157)
Borrowings due after one
year (256) (116) (249)
Net funds 207 305 132
Crimson Tide Plc
Notes to the Unaudited Interim Results for the 6 months ended 30
June 2016
1. Basis of preparation of interim report
The information for the period ended 30 June 2016 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 2015.
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
2016 2015 2015
Basic and diluted earnings
per share
Reported profit (GBP000) 122 60 168
Reported profit per
share (pence) 0.03 0.01 0.04
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
30 June 30 June December
2016 2015 2015
No. 000 No. 000 No. 000
Weighted average number
of ordinary shares:
Shares in issue at
start of period 445,486 445,486 445,486
Effect of shares issued 197 - -
during the period
------------ ------------ ------------
Weighted average number
of ordinary shares 445,683 445,486 445,486
------------ ------------ ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UAOSRNSAKUAR
(END) Dow Jones Newswires
September 22, 2016 02:00 ET (06:00 GMT)
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