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

Crimson TideAnnouncement

07/09/2017 07:06

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 (1,114k vs. 845k)
 Profit Before Tax 16% higher at 142k (1H 2016: 122k);
 Cash generated from operations over 70% higher than 1H 2016 (365k vs 212k)
 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 1,114k, up 32% on the same period in 2016 (1H 2016: 845k). 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 142k in the first half 2017 (1H 2016: 122k).
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 
6 Months
ended 
30 June
2017

Unaudited 
6 Months
ended 
30 June
2016

Audited 
12 Months
ended 31 
December
2016


000

000

000






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 
6 Months
ended 
30 June
2017

Unaudited 
6 Months
ended 
30 June
2016

Audited 
12 Months
ended 31 
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 
6 Months
ended 
30 June
2017

Unaudited 
6 Months
ended 
30 June
2016

Audited 
12 Months
ended 31 
December
2016


000

000

000
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
As at 
30 June 
2017

Unaudited
As at 
30 June 
2016

Audited
As at 31 December 2016

000

000

000
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

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

000
000
000
000
000
000
000
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
6 Months 
ended 
30 June 
2017

Unaudited
6 Months 
ended 
30 June 
2016

Audited
12 Months 
ended 
31 December 
2016

000

000

000
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
6 Months 
ended 
30 June 
2017

Unaudited
6 Months 
ended 
30 June 
2016

Audited
12 Months 
ended 
31 December 
2016

000

000

000
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
6 Months 
ended
30 June 
2017
Unaudited
6 Months 
ended
30 June 
2016
Audited
12 Months 
ended 31
December 
2016
Basic and diluted earnings per share



Reported profit (000)
142
122
348
Reported profit per share (pence)
0.03
0.03
0.08

Unaudited
6 Months 
ended
30 June 
2017
Unaudited
6 Months 
ended
30 June 
2016
Audited
12 Months 
ended 31
December 
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
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