REG - Crimson Tide PLC - Interim Results <Origin Href="QuoteRef">CTID.L</Origin>

Crimson TideAnnouncement

30/09/2015 07:01

RNS Number : 6173A
Crimson Tide PLC
30 September 2015
30 September 2015
Crimson Tide plc
("Crimson Tide" or "the Company")
Interim Results for the six months ended 30 June 2015
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 2015.
Highlights
 Profit Before Tax more than doubled to 60k (1H 2014: 25k) in line with expectations
 More significant contract wins 
 Cash from operations of 361k, 38% up on same period last year (1H 2014: 261k)
Barrie Whipp, Executive Chairman, commented,
" A very pleasing period for the Company and we are well placed to take advantage of recent significant contract wins"
Enquiries:
Crimson Tide plc 
Barrie Whipp
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 2015. We exceeded all of our key indicators and Profit after Tax increased by 140% to 60k on slightly increased turnover. Once again we achieved record subscriber numbers.
Significant contract wins included a pilot for a leading supermarket as well as the contract for mpro5 to distribute The Evening Standard. We completed the roll out of around 200 users for Brennan's in Ireland, sold through our partner Vodafone. We also continued with our roll out worldwide with a global food and beverage company. Initial roll out took place in Australia, with Germany and Brazil following shortly afterwards. 
We have completed significant technical work on mpro5 with the core product achieving ever higher levels of functionality. Recently we have upgraded all of our web systems to Model View Controller functionality which has been universally praised by our customers. 
In healthcare the mpro5 system has been developed further in the fields of haemophilia, autism and Ebola and we have a level of optimism in respect of opportunities in the wider healthcare field. We have also developed a version of mpro5 that deals with food health and safety, another area with tremendous upside. We have been working with a major University Health Science Center in the United States to develop the Ebola solution and hope to roll out pilots in West Africa shortly, whilst the autism version of mpro5 is now being used in the NHS for the first time. 
Our landmark contract with a UK retailer announced recently, will see mpro5 rolled out across a wide spectrum of UK retail space and we are optimistic that this iteration of mpro5 will quickly produce publicity to fight fraudulent insurance claims and to make retail outlets safer for customers.
During the period we wished Rowley Ager farewell as a Non- Executive Director and welcomed Robert Todd, a shareholder and friend of the Company for many years, in his place. Sam Roberts joined the board as Sales & Marketing Director and has been working hard on building a channel sales strategy including distributors, VARS and operators. We are starting to see the benefits of this strategy. 
The Board and I feel that we are now seeing the benefits of the substantial gearing that we have generated. We are confident that the new channel strategy will result in greater opportunities and look forward to the future with ever increasing optimism. 
Barrie Whipp
Executive Chairman
30 September 2015


Operating and Financial Review
I am once again pleased to report significant progress and comment on our results for the six months to 30 June 2015.
Turnover for the six months to 30 June 2015 was 673k (2014: 614k) comprised mostly of longer-term subscription income (75 per cent) arising from contracts that typically cover an initial three year term. During the period we announced that we had begun to roll out mpro5 to the global food and beverage company's operations in Australia and new geographic locations are following. We also announced that revenues from a number of other long term contract wins for our mpro5 product are expected to build during 2015 as the solution is increasingly used in logistics, field audit, facilities maintenance and healthcare activities.
Hosting our services with Microsoft's Azure in the cloud has continued to benefit gross margins which are now over 90%. Operating profit before depreciation, amortisation and interest totalled 198k (2014: 172k) with margins remaining high at just under 30%. Our high operational gearing means that operating margins are likely to continue to improve as revenues increase with the addition of more subscribers without the same proportional increase in overheads. 
In line with our strategy to continue to invest for future growth, certain areas of overhead spending have been targeted to increase over the course of the year, in particular, a higher level of investment in marketing, including the creation of a new channel sales initiative. 
After depreciation, amortisation and interest costs, the Group achieved a profit before tax of 60k in the first half 2015 (2014: 25k).
Net cash generated from operating activities continues to increase year on year. During the period, cash generated from our operating activities totalled 361k (2014: 261k). We continue to invest the majority of this for future growth in assets for new subscribers. Net cash balances increased from 239k at the end of 2014 to 499k at 30 June 2015 partly assisted by asset finance from Lombard for new hand-held devices purchased for new contracts. 
There have been no changes to Crimson Tide's accounting policies which can be found in the notes to the published 2014 Consolidated Financial Statements available on our website, www.crimsontide.co.uk.
The number of subscribers using Crimson Tide's mpro5 solution continues to build year on year. Furthermore, the current opportunity pipeline is extremely encouraging with companies of increasing size seriously looking to implement mpro5 in their businesses. Our business model, targeting long term contracted revenues gives the Board more reasons to remain very positive for the prospects for the Company.
Stephen Goodwin
Finance Director
30 September 2015


Crimson Tide plc
Unaudited Consolidated Income Statement for the 6 months to 30 June 2015

Unaudited 
6 Months
ended 
30 June
2015

Unaudited 
6 Months
ended 
30 June
2014

Audited 
12 Months
ended 31 
December
2014


000

000

000






Revenue
673

614

1,210
Cost of Sales
(62)

(106)

(166)






Gross Profit
611

508

1,044
Overhead expenses
(413)

(336)

(715)






Earnings before interest, tax, depreciation & amortisation
198

172

329
Depreciation & Amortisation
(132)

(141)

(237)






Profit from operations
66

31

92
Interest income
-

-

-
Interest payable and similar charges
(6)

(6)

(8)






Profit before taxation
60

25

84
Taxation
-

-

-






Profit for the year attributable to equity holders of the parent
60

25

84






Earnings per share
Unaudited 
6 Months
ended 
30 June
2015

Unaudited 
6 Months
ended 
30 June
2014

Audited 
12 Months
ended 31 
December
2014

Basic and diluted earnings per Ordinary Share
0.01p

0.01p

0.02p
(see Note 2)







Unaudited Consolidated Statement of Comprehensive Income 
for the 6 months to 30 June 2015

Unaudited 
6 Months
ended 
30 June
2015

Unaudited 
6 Months
ended 
30 June
2014

Audited 
12 Months
ended 31 
December
2014


000

000

000
Profit for the period
60

25

84
Other comprehensive income/(loss) for period:





Exchange differences on translating foreign operations
(5)

(7)

(9)












Total comprehensive profit recognised in the period and attributable to equity holders of parent
55

18

75






 


Unaudited Consolidated Statement of Financial Position at 30 June 2015 

Unaudited
As at 
30 June 2015

Unaudited
As at 
30 June 2014

Audited
As at 31 December 2014

000

000

000
Fixed Assets





Intangible assets
1,308

1,213

1,260
Equipment, fixtures & fittings
390

367

339 

1,698

1,580

1,599
Current Assets





Inventories
11

31

30
Trade and other receivables
346

415

563
Cash and cash equivalents
499

247

239
Total current assets
856

693

832






Total assets
2,554

2,273

2,431






Equity and liabilities





Equity 





Share capital
7,335

7,335

7,335
Capital redemption reserve
49

49

49
Share premium
1,090

1,090

1,090
Other reserves
421

428

426
Reverse acquisition reserve
(5,244)

(5,244)

(5,244)
Retained earnings
(1,726)

(1,845)

(1,786)
Total Equity
1,925

1,813

1,870
Creditors





Amounts falling due within one year
513

460

561
Creditors





Amounts falling due after more than one year
116

-

-
Total liabilities
629

460

561






Total equity and liabilities
2,554

2,273

2,431

 

 

 


Unaudited Consolidated Statement of Changes In Equity at 30 June 2015

Share capital
Capital redemp-tion reserve
Share premium
Other reserves
Reverse acquisi-tion reserve
Retained earnings
Total

000
000
000
000
000
000
000
Balance at 31 December 2013
7,335
49
1,090
435
(5,244)
(1,870)
1,795








Profit for the period
-
-
-
-
-
25
25
Translation movement
-
-
-
(7)
-
-
(7)
Balance at 
30 June 2014
7,335
49
1,090
428
(5,244)
(1,845)
1,813
























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


















Unaudited Consolidated Statement of Cashflows for the 6 months to 30 June 2015

Unaudited
6 Months 
ended 
30 June 
2015

Unaudited
6 Months 
ended 
30 June 
2014

Audited
12 Months 
ended 
31 December 
2014

000

000

000
Cash flows from operating activities





Profit before tax
60

25

84
Adjustments for:





Amortisation of Intangible Assets
52

66

83
Depreciation of equipment, fixtures and fittings
80

75

154
Profit on Sale of Assets
-

-

(6)
Net Interest
6

6

8
Operating cash flows before movement in working capital and provisions
198

172

323
Decrease in inventories
19

17

18
Decrease in trade and other receivables
217

81

(67)
(Decrease)/increase in trade and other payables
(73)

(9)

159






Cash generated from operations
361

261

433
Taxes paid
-

-

-
Net cash generated in operating activities
361

261

433






Cash flows used in investing activities 





Purchase of fixed assets
(230)

(80)

(218)
Sale of fixed assets
-

-

19
Interest received
-

-

-
Net cash used in investing activities
(230)

(80)

(199)






Cash flows from financing activities





Interest paid
(6)

(6)

(8)
Net increase/(decrease) in borrowings
135

(60)

(119)






Net cash from/(used in) financing activities
129

(66)

(127)
Net increase in cash and cash equivalents
260

115

107






Net cash and cash equivalents at beginning of period 
239

132

132
Net cash and cash equivalents at end of period
499

247

239



Unaudited
6 Months 
ended 
30 June 
2015

Unaudited
6 Months 
ended 
30 June 
2014

Audited
12 Months 
ended 
31 December 
2014

000

000

000
Analysis of net funds:





Cash and cash equivalents
499

247

239
Bank overdraft
-

-

-

499

247

239






Other borrowing due within one year
(19)

(117)

(58)
Borrowings due after one year
(33)

-

-
Finance leases 
(142)

(2)

(1)






Net funds
305

128

180






Crimson Tide Plc
Notes to the Unaudited Interim Results for the 6 months ended 30 June 2015 
1. Basis of preparation of interim report
The information for the period ended 30 June 2015 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 2014. 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
6 Months 
ended
30 June 
2015
Unaudited
6 Months 
ended
30 June 
2014
Audited
12 Months 
ended 31
December 
2014
Basic and diluted earnings per share



Reported profit (000)
60
25
84
Reported profit per share (pence)
0.01
0.01
0.02

Unaudited
6 Months 
ended
30 June 
2015
Unaudited
6 Months 
ended
30 June 
2014
Audited
12 Months 
ended 31
December 
2014

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 during the period
-
-
-
Weighted average number of ordinary shares 
445,486
445,486
445,486





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