TIDMTIDE
RNS Number : 1268N
Crimson Tide PLC
28 September 2021
28 September 2021
Crimson Tide plc
Interim results for the six months ended 30 June 2021
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 2021.
Financial headlines
-- Turnover increase of 13.8% to GBP2,015k (H1 2020: GBP1,770k)
-- EBITDA increase of 12.5% to GBP529k (H1 2020: GBP470k)
-- Profit before tax increased by 11.3% to GBP286k (H1 2020: GBP257)
-- Fundraise of GBP5.6m (net of fees) finalised during April
2021, of which GBP250k spent in H1
Operational highlights
-- Expansion of food safety use of mpro5
-- Early progress on micro business version
-- UAT completed for patient version of mpro5
-- Raleigh, NC established as US base
-- Significant hires in sales, marketing and development
Barrie Whipp, Founder and Chairman, commented,
"With the completed fundraise for expansion purposes, we are set
to experience a new phase of growth as a business. We are now in a
position to deliver our version of mpro5 for micro/nano business
while mpro5 continues to perform strongly in our key enterprise
sectors of transport, facilities management and retail. We are
about to experience a period of significant expenditure on growth,
which will change our profile in H2 2021 and 2022, with the firm
belief that we have a bright future ahead".
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 multi-year
subscription basis driving immediate return on investment for its
users.
Enquiries:
Crimson Tide plc
Barrie Whipp / Luke Jeffrey +44 1892 542444
finnCap Ltd (Nominated Adviser and Broker)
Corporate Finance: Julian Blunt / James
Thompson +44 20 7220 0500
Corporate Broking: Andrew Burdis
Alma PR (Financial PR)
Josh Royston +44 7780 901979
Chairman's Statement
The first half of the year demonstrated the robustness of our
long-term subscription model for mpro5, whilst setting us up for
the largest capital raise in our history. With early wins in the
food safety sector as well as the utility vertical, we were able to
demonstrate the sound business model that attracted several highly
respected investors in the AIM market to participate in our
fundraising in April.
Our increased capital base and cash generated from mpro5's
existing operations saw cash increase to in excess of GBP6.5m, and
we are now in the early days of implementing the strategy presented
to investors. We are addressing client feature requests for the
core mpro5 platform which inherently enhances our sales process.
Our enterprise deals, by their nature, can have longer lead times,
however our abilities in IoT and dashboarding are making mpro5 even
more compelling. We are currently focused on the transport,
facilities management and retail sectors and our key model is to
"land and expand" with enterprise clients. Part of this strategy is
to be able to assist them wherever their business is located.
Internationally, we have established mpro5 Inc, based in
Raleigh, North Carolina. This is not a grand physical strategy but
a tactical approach, where our US CEO, Mark Self can approach
existing clients (or clients of clients) as well as establish
partnerships and relationships. Our mpro5 demo systems and
marketing material can help us add new business based upon existing
use cases. We have expanded into Scandinavia: whilst only in a very
small way to date, this is an excellent example of how mpro5's
value in the UK & Ireland is replicable with international
clients in their other geographic markets. Adding the World
Federation of Haemophilia to our subscription base also represents
a highly exciting opportunity. Our patient app, previously
applicable to patients with haemophilia has been completely
reengineered to suit any condition where patients need to report
usage of medication as well as verification that the medicine is in
date, applicable to them and not counterfeit. We are as excited
with the opportunities in this sector as any of our business
verticals.
Project wrkrz, our version of mpro5 for micro/nano business is
undergoing first stage development as well as market research,
branding and technical stack progress on an ongoing basis. We aim
for release in Q2, 2022 and it should be noted that many of the new
learnings are also relevant to future developments in mpro5. Our
market research indicates that there is a clear market for this low
touch version of mpro5 in the trades sector and will see
significant investment in the coming years.
This has been an important half year for Crimson Tide plc. With
the capital backing that we have previously lacked, we can now
invest in some of the opportunities that we know exist, as well as
major partner acquisition, integration and more aggressive R&D.
We feel that we can now market our business aggressively. I
encourage you to visit mpro5.com to view our case studies and
marketing material. This business has never been so well set. The
addition of a Head of Marketing, US CEO and Jacqueline Daniell, as
a new Non-Executive Director, has strengthened our executive and
board significantly.
We are keenly focused on expanding the business in our key
sectors, whilst exploring geographic opportunities and developing
our micro business and patient versions of the mpro5 platform. We
have strengthened our team, identified our marketing and
development partners and will press ahead with ambition and
optimism.
Barrie Whipp
Founder and Chairman
28 September 2021
Financial Review
Financial indicator Six months Six months Increase Year ended
ended 30 ended 31 December
June 2021 30 June % 2020
GBP'000 2020 GBP'000
GBP'000
Revenue 2,015 1,770 13.8% 3,542
----------- ----------- --------- -------------
Gross profit 1,652 1,404 17.7% 2,865
----------- ----------- --------- -------------
EBITDA 529 470 12.5% 946
----------- ----------- --------- -------------
Profit before tax 286 257 11.3% 532
----------- ----------- --------- -------------
The half-year financial results for 2021 reflect double-digit
growth across all the key financial indicators.
Revenue
Revenue growth remained robust during the period, with monthly
recurring revenue as at 30 June 2021 at cGBP300,000 (H1 2020:
cGBP235,000). Consultancy fees contributed GBP178,000 to revenue
during the period (H1 2020: GBP255,000). Revenue churn during the
period remained low at 1.4% (H1 2020: 3.9%). Geographically the
revenue split remained consistent to that of the prior year, with
the UK contributing 92% of revenue (H1 2020: 93%).
Cost of Sales and gross profit
The gross profit margin of 82% remained above the Board's target
rate of 80% (H1 2020: 79%).
Other income
Other income reflects the sale of legacy hardware devices. The
nature of this is not recurring.
Cashflow
Operating cash flows before movement in working capital
increased to GBP530,000 (H1 2020: GBP476,000). Although cash
generated by operations of GBP111,000 (H1 2020: GBP1.03 million)
appears to have decreased, this is mostly an effect of the measures
that the Board put in place during the first lockdown in 2020 to
preserve cash, with the subsequent correction taking place during
the current period. Cash prior to the fundraise in April was
cGBP1m. Following the successful raise of GBP5.6 million (net of
fees) at the end of April, the Company has spent approximately
GBP250,000 on initiatives highlighted during the fundraise process.
It is expected that this amount will increase during H2 2021.
Investment in marketing will also increase, under the guidance of
the newly appointed Head of Global Marketing.
Lease liabilities
Loans and leases decreased to GBP205,000 (H1 2020: GBP410,000)
and obligations will conclude during the following 18 months. No
new leases were entered into during the period under review.
Intangible asset
Software development costs of GBP259,000 (H1 2020: GBP229,000)
were capitalised during the period under review, while amortisation
amounted to GBP123,000 (H1 2020: GBP100,000). The value of the
capitalised software intangible asset at period-end was GBP1.8
million (H1 2020: GBP1.45 million).
Earnings per share
Following the issue of 200 million ordinary shares on 23 April
2021, the total number of ordinary shares in issue at period end
was 657,486,234 (H1 2020: 457,486,234). Basic and diluted earnings
per share was 0.05p (H1 2020: 0.06p) during the period under
review.
Crimson Tide plc
Condensed Consolidated Statement of Profit or Loss
for the 6 months to 30 June 2021
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
30 June 30 June December
2021 2020 2020
GBP000 GBP000 GBP000
Revenue 2,015 1,770 3,542
Cost of Sales (363) (366) (677)
Gross Profit 1,652 1,404 2,865
Other income 123 - 5
Administrative expenses (1,477) (1,128) (2,309)
---------- ---------- -----------
Operating profit 298 276 561
Finance costs (12) (19) (29)
Profit before taxation 286 257 532
Taxation - - 202
---------- ---------- -----------
Profit for the period attributable
to equity holders of the parent 286 257 734
========== ========== ===========
Earnings per share Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
30 June 30 June December
2021 2020 2020
Basic earnings per Ordinary Share 0.05p 0.06p 0.16p
Diluted earnings per Ordinary Share 0.05p 0.06p 0.16p
Condensed Consolidated Statement of Comprehensive Income
for the 6 months to 30 June 2021
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
30 June 30 June December
2021 2020 2020
GBP000 GBP000 GBP000
Profit for the period 286 257 734
Other comprehensive income/(loss)
for period:
Exchange differences on translating
foreign operations 1 6 4
Total comprehensive profit recognised
in the period and attributable to
equity holders of parent 287 263 738
========== ========== ===========
Condensed Consolidated Statement of Financial Position at 30
June 2021
Unaudited Unaudited Audited
As at As at As at 31
30 June 30 June December
2021 2020 2020
GBP000 GBP000 GBP000
ASSETS
Non-current assets
Intangible assets 2,577 2,247 2,441
Property, plant & equipment 189 291 235
Right-of-use asset 64 121 92
Deferred tax asset 32 32 32
---------- ---------- ----------
Total non-current assets 2,862 2,691 2,800
---------- ---------- ----------
Current assets
Inventories 6 6 6
Trade and other receivables 1,474 1,018 1,221
Cash and cash equivalents 6,596 1,052 1,175
---------- ---------- ----------
Total current assets 8,076 2,076 2,402
---------- ---------- ----------
Total assets 10,938 4,767 5,202
---------- ---------- ----------
LIABILITIES
Current liabilities
Trade and other payables 741 820 907
Borrowings 7 18 8
Lease liabilities 134 221 181
---------- ---------- ----------
Total current liabilities 882 1,059 1,096
---------- ---------- ----------
Non-current liabilities
Borrowings - 8 5
Lease liabilities 64 163 94
---------- ---------- ----------
Total non-current liabilities 64 171 9
Total liabilities 946 1,230 1,195
---------- ---------- ----------
Net assets 9,992 3,537 4,007
---------- ---------- ----------
EQUITY
Share capital 657 457 457
Share premium 5,644 148 148
Other reserves 481 480 479
Reverse acquisition reserve (5,244) (5,244) (5,244)
Retained profits 8,454 7,696 8,167
---------- ---------- ----------
Total equity 9,992 3,537 4,007
---------- ---------- ----------
Condensed Consolidated Statement of Changes in Equity
Six-month period ended 30 June 2021 (Unaudited)
Reverse
acquisi-tion
Share Share premium Other reserve Retained
capital reserves earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 31
December 2020 457 148 479 (5,244) 8,167 4,007
Shares issued 200 5,496 - - - 5,696
Profit for the
period - - - - 286 286
Translation
movement - - 2 - 1 3
Balance at
30 June 2021 657 5,644 481 (5,244) 8,454 9,992
Six-month period ended 30 June 2020 (Unaudited)
Reverse
acquisi-tion
Share Share premium Other reserve Retained
capital reserves earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
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
Balance at
30 June 2020 457 148 480 (5,244) 7,696 3,537
Condensed Consolidated Statement of Changes in Equity
Year ended 31 December 2020 (Audited)
Reverse
acquisi-tion
Share Share premium Other reserve Retained
capital reserves earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1
January 2020 457 148 475 (5,244) 7,433 3,269
Profit for the
period - - - - 734 734
Translation
movement - - 4 - - 4
Balance at
31 December
2020 457 148 479 (5,244) 8,167 4,007
Condensed Consolidated Statement of Cash flows
For the 6 months to 30 June 2021
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 June 30 June 31 December
2021 2020 2020
GBP000 GBP000 GBP000
Cash flows from operating activities
Profit before tax 286 257 532
Adjustments for:
Amortisation of Intangible Assets 123 100 216
Depreciation of property, plant
and equipment 80 66 111
Depreciation of right-of-use assets 28 28 57
Unrealised currency translation
movement 1 6 4
Interest paid 12 19 29
--------- --------- ------------
Operating cash flows before movement
in working capital and provisions 530 476 949
Decrease in inventories - 6 6
(Increase)/decrease in trade and
other receivables (253) 202 (1)
(Decrease)/increase in trade and
other payables (166) 346 433
--------- --------- ------------
Cash generated by operations 111 1,030 1,387
Income taxes received - - 202
Interest paid in cash (10) (15) (27)
--------- --------- ------------
Net cash from operating activities 101 1,015 1,562
--------- --------- ------------
Cash flows from investing activities
Purchases of property, plant and
equipment (34) (32) (21)
Development expenditure capitalised (259) (229) (539)
--------- --------- ------------
Net cash used in investing activities (293) (261) (560)
--------- --------- ------------
Cash flows from financing activities
Net proceeds from share issues 5,696 - -
Repayments of borrowings (6) (14) (21)
Repayments of lease liability (77) (8) (126)
--------- --------- ------------
Net cash from financing activities 5,613 (22) (147)
--------- --------- ------------
Net increase in cash and cash equivalents 5,421 732 855
Net cash and cash equivalents at
beginning of period 1,175 320 320
--------- --------- ------------
Net cash and cash equivalents at
end of period 6,596 1,052 1,175
--------- --------- ------------
Crimson Tide Plc
Notes to the Unaudited Interim Results for the 6 months ended 30
June 2021
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 2020, which have been prepared in accordance
with IFRS as adopted by the European Union.
The information for the period ended 30 June 2021 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 2020. 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, (ii)
non-core software solutions, including reselling third party
software and related development and support services, and (iii)
hardware sales to existing customers.
Segment information for the reporting periods is as follows:
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
30 June 30 June December
2021 2020 2020
Revenue by business activity
Mobility solutions and related
development 1,837 1,290 3,212
Software consultancy 178 255 330
Hardware sales - 225 -
------------ ------------ ------------
2,015 1,770 3,542
------------ ------------ ------------
Revenue can be further analysed by geographic reason as
follows:
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
30 June 30 June December
2021 2020 2020
Revenue by geographic region
UK 1,855 1,640 3,233
European Union 140 118 275
Rest of the world 20 12 34
------------ ------------ ------------
2,015 1,770 3,542
------------ ------------ ------------
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 Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
30 June 30 June December
2021 2020 2020
Earnings per share
Reported profit (GBP000) 286 257 734
Reported basic earnings per
share (pence) 0.05 0.06 0.16
Reported diluted earnings
per share (pence) 0.05 0.06 0.16
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
30 June 30 June December
2021 2020 2020
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 76,243 - -
the period*
------------ ------------ ------------
Weighted average number of
ordinary
shares for basic EPS 533,729 457,486 457,486
Effect of share options outstanding 291 - 2,939
------------ ------------ ------------
Weighted average number of
ordinary
shares for diluted EPS 534,020 457,486 460,425
------------ ------------ ------------
*200 million ordinary shares were issued on 23 April 2021.
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END
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