REG - Crimson Tide PLC - Interim Results

Crimson TideAnnouncement

28/09/2018 07:06

RNS Number : 2480C
Crimson Tide PLC
28 September 2018
 


28 September 2018
 
Crimson Tide plc
 
("Crimson Tide" or "the Company")
 
Interim Results for the six months ended 30 June 2018
 
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 2018.
 
Highlights
 
·     Strong growth in opportunities from planned Sales & Marketing investment
 
·     Revenues up 8% up on 1H 2017 (£1,201k v £1,114k)
 
·     Profit Before Tax £4k (1H 2017: £142k) after over £200k of planned investment
 
·     IOT solution, 5Things, now ready for market, mpro5 publicly downloadable.
 
       
 
 
Barrie Whipp, Executive Chairman, commented,
 
"Our pipeline has grown significantly and have seen additional demand from Europe and the Middle East as well as in the UK & Ireland. The Board estimates that, considering increased investment in Sales & Marketing, like for like profit would have increased by approximately 50%. We are working on a much wider range of exciting opportunities and have developed mpro5's IOT capabilities. mpro5 is now publicly downloadable from app stores for demonstration purposes and for smaller businesses. We are extremely well placed to take advantage of the opportunities generated from our marketing activities and the Board is excited to accelerate our growth to the next level. "
 
 
 
Enquiries:
 



Crimson Tide plc                          
Barrie Whipp / Luke Jeffrey
 


01892 542444




Arden Partners
Steve Douglas / Dan Gee-Summons
 


020 7614 5900













 
 
 




 
 
Chairman's Statement
 
The first half of 2018 has been a period of continued investment in the Company, in line with the strategy set out in 2017 to accelerate future growth. We have increased our sales team and invested significantly in marketing and we are already seeing a step change in our pipeline of opportunities, both in terms of volume and scale as a result.
 
We currently have over 100 identified opportunities with potential clients, five times more than typical levels before these investments were made. These opportunities range from those in the SME sector to substantial enterprise clients. This has also enabled us to increase our base pricing.
 
Supporting this are the continued operational improvements that have been made to mpro5. One of our goals for mpro5 this year was to make it available as a publicly available download and this was achieved with our Project Apollo release. Potential clients can now simply register for a free trial, download mpro5 and start completing their flows immediately. This gives us confidence for our future offering, where mpro5 is available for Micro and Nano organisations globally on a shorter-term subscription basis.
 
This will be further supported in the coming months with the release of a new website which will provide an easier interface for direct users and will allow them to schedule workflows for themselves rather than doing so indirectly through our support team.
 
We have also made further progress with 5Things, our Internet of Things ("IoT") function which is now complete and ready for general sale. We believe we have a unique proposition whereby we can supply our own tested sensors and gateways, are network agnostic and can integrate existing client services. There has clearly been a lot of noise around IoT and its potential applications for some time but its use in sensors and resulting alerts is gaining widespread acceptance and traction. mpro5 can schedule complete workflows based upon sensor data and rules and, as such, we will be able to sell to sensor providers, not just end users of mpro5.
 
We continue to be excited about our new geographic areas of operation, particularly The Netherlands and Middle East as well as increased focus in Ireland. Our investment in these geographies has been sensible and measured.  They have naturally taken their time to become established, but they now represent an increasing number of the opportunities that we are seeing. Further evidence of this was the announcement, post the period end, of two new contracts secured in the Middle East and a contract with a major US pharma company secured in Ireland. We have recently recruited Sam Roberts as our new Director of Enterprise Sales and two other sales-focused employees in Ireland and Dubai
 
We look forward to updating shareholders with further announcements as we secure more business from these geographies.
 
We remain on track to deliver the strategy set out to our shareholders at the start of 2017. With the increased functionality of mpro5 and 5Things and our increased sales capability, I believe that we are in a strong position to convert an increasing amount of the growing opportunities pipeline that our investment in marketing has afforded us. With high margins and sensible costs, we are optimistic in the current climate.
 




 
I believe that had we not made such investments then our profits would have increased by around 50% on a like for like basis. As it is, with this investment in place we are well placed to deliver accelerated, sustainable growth, underpinned by our healthy cash balance which will drive returns for shareholders in the years to come.
 
 
Barrie Whipp
Executive Chairman
28 September 2018
 




 
Crimson Tide plc
Unaudited Consolidated Income Statement for the 6 months to 30 June 2018
 







Unaudited
6 Months
ended
30 June
2018






Unaudited
6 Months
ended
30 June
2017






Audited
12 Months
ended 31
December
2017












£000






£000






£000


 




























 




Revenue


1,201






1,114






2,275


 




Cost of Sales


(170)






(109)






(231)


 




























 




Gross Profit


1,031






1,005






2,044


 




Overhead expenses


(807)






(647)






(1,240)


 




Exceptional item (Note 2)


-






-






(44)


 




























 




Earnings before interest, tax, depreciation & amortisation


 
224






 
358






 
760


 




Depreciation & Amortisation


(202)






(189)






(394)


 




























 




Profit from operations


22






169






366


 




Interest payable and similar charges


(18)






(27)






(51)


 




























 




Profit before taxation


4






142






315


 




Taxation


-






-






(5)


 




























 




Profit for the year attributable to equity holders of the parent


 
4






 
142






 
310


 




























 




Earnings per share


Unaudited
6 Months
ended
30 June
2018






Unaudited
6 Months
ended
30 June
2017






Audited
12 Months
ended 31
December
2017








Basic earnings per Ordinary Share


0.00p






0.03p






0.07p


 




Diluted earnings per Ordinary Share


0.00p






0.03p






0.07p


 




























 




(see Note 3)






















 



 
 
 




 
Unaudited Consolidated Statement of Comprehensive Income
for the 6 months to 30 June 2018
 







Unaudited
6 Months
ended
30 June
2018






Unaudited
6 Months
ended
30 June
2017






Audited
12 Months
ended 31
December
2017












£000






£000






£000


 




























 




Profit for the period


4






142






310


 




 
Other comprehensive income/(loss) for period:






















 




Exchange differences on translating foreign operations


(1)






(2)






(1)


 




























 




























 




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


 
3






 
140






 
309


 




























 



                  




Unaudited Consolidated Statement of Financial Position at 30 June 2018
 







Unaudited
As at
30 June
2018






Unaudited
As at
30 June
2017






Audited
As at 31 December 2017








£000






£000






£000




Fixed Assets
























Intangible assets


1,785






1,592






1,698




Equipment, fixtures & fittings


491






698






611








2,276






2,290






2,309




Current Assets
























Inventories


10






8






8




Trade and other receivables


787






686






974




Cash and cash equivalents


782






861






757




Total current assets


1,579






1,555






1,739






























Total assets


3,855






3,845






4,048






























Equity and liabilities
























Equity
























Share capital


454






453






454




Share premium


121






112






121




Other reserves


420






420






421




Reverse acquisition reserve


(5,244)






(5,244)






(5,244)




Retained earnings


7,073






6,901






7,069




Total Equity


2,824






2,642






2,821




Creditors
























Amounts falling due within one year


754






831






868




 
Creditors
























Amounts falling due after more than one year


277






372






359




Total liabilities


1,031






1,203






1,227






























Total equity and liabilities


3,855






3,845






4,048








     






     






     



 




 
Unaudited Consolidated Statement of Changes In Equity at 30 June 2018
 







 
 
Share capital


 
 
Share premium


 
 
Other reserves


Reverse acquisi-tion reserve


 
 
Retained earnings


 
 
 
Total








£000


£000


£000


£000


£000


£000




Balance at 31 December 2016


453


112


422


(5,244)


6,759


2,502


































Profit for the period


-


-


-


-


142


142




Translation movement


-


-


(2)


-


-


(2)




Balance at
30 June 2017


 
453


 
112


 
420


 
(5,244)


 
6,901


 
2,642
































































Balance at 31 December 2017


454


121


421


(5,244)


7,069


2,821




Profit for the period


-


-


-


-


4


4




Translation movement


-


-


(1)


-


-


(1)




Balance at
30 June 2018


 
454


 
121


 
420


 
(5,244)


 
7,073


 
2,824



































































Unaudited Consolidated Statement of Cashflows for the 6 months to 30 June 2018
 







Unaudited
6 Months
ended
30 June
2018






Unaudited
6 Months
ended
30 June
2017






Audited
12 Months
ended
31 December
2017








£000






£000






£000




Cash flows from operating activities
























Profit before tax


4






142






315




Adjustments for:
























Amortisation of Intangible Assets


71






56






120




Depreciation of equipment, fixtures and fittings


131






133






274




Net Interest


18






27






51




Operating cash flows before movement in working capital and provisions


224






358






760




Increase in inventories


(2)






(1)






(1)




Decrease/(increase) in trade and other receivables


187






(50)






(338)




(Decrease)/increase in trade and other payables


(48)






58






143






























Cash generated from operations


361






365






564




Taxes paid


-






-






(5)




Net cash generated in operating activities


361






365






559






























Cash flows used in investing activities
























Purchase of fixed assets


(170)






(207)






(431)




Net cash used in investing activities


(170)






(207)






(431)






























Cash flows from financing activities
























Net proceeds from issues of shares


-






-






10




Interest paid


(18)






(27)






(51)




Net decrease in borrowings


(148)






(150)






(189)






























Net cash used in financing activities


 
(166)






 
(177)






(230)




Net increase/(decrease) in cash and cash equivalents


25






(19)






(102)






























Net cash and cash equivalents at beginning of period


757






859






859




Net cash and cash equivalents at end of period


782






840






757



 




 
 







Unaudited
6 Months
ended
30 June
2018






Unaudited
6 Months
ended
30 June
2017






Audited
12 Months
ended
31 December
2017








£000






£000






£000




Analysis of net funds:
























Cash and cash equivalents


782






861






757




Bank overdraft


-






(21)






-








782






840






757






























Other borrowings due within one year


(214)






(306)






(280)




Borrowings due after one year


(277)






(372)






(359)






























Net funds


291






162






118





























 
 
 
 
Crimson Tide Plc
 
Notes to the Unaudited Interim Results for the 6 months ended 30 June 2018
 
1.    Basis of preparation of interim report
 
The information for the period ended 30 June 2018 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 2017.  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.    Exceptional item
 
The exceptional item of £44,000 in the year to 31 December 2017 represents one-off legal fees and accounting due diligence costs incurred in preparation of an acquisition that was subsequently aborted by the Company.
 




 
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
 6 Months
ended
30 June
2018
 


 
Unaudited
 6 Months
ended
30 June
2017
 


 
Audited
 12 Months
ended 31
December
2017
 




Earnings per share
















Reported profit (£000)


4


142


310




Reported basic earnings per share (pence)


0.00


0.03


0.07




Reported diluted earnings per share (pence)


0.00


0.03


0.07



 







 
Unaudited
 6 Months
ended
30 June
2018
 


 
Unaudited
 6 Months
ended
30 June
2017
 


 
Audited
 12 Months
ended 31
December
2017
 








No. 000


No. 000


No. 000




Weighted average number of ordinary shares:
















Shares in issue at start of period


454,486


453,486


453,486




Effect of shares issued during the period


-


-


52




Weighted average number of ordinary
Shares for basic EPS


 
454,486


 
453,486


 
453,538




Effect of share options outstanding


10,364


12,522


11,282




Weighted average number of ordinary
shares for diluted EPS


 
464,850


 
466,008


 
464,820





















 
 
 




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
IR UBVBRWAAKUAR