REG - Crimson Tide PLC - Interim Results

Crimson TideAnnouncement

27/09/2019 07:05

RNS Number : 8569N
Crimson Tide PLC
27 September 2019
 


27 September 2019
 
Crimson Tide plc
 
("Crimson Tide" or "the Company")
 
Interim results for the six months ended 30 June 2019
 
Crimson Tide, the provider of mpro5 - #notjustanapp (AIM: TIDE.L), announces its unaudited interim results for the six months ended 30 June 2019.
 
Highlights
 
·    Profit before tax increased by over 2,000% to £101k (H1 2018: £4k)
 
·    Turnover increased by 5.5% to £1,267k (H1 2018: £1,201k), influenced by fewer, lower margin hardware sales
 
·    Pipeline of business enlarged and includes more enterprise organisations
 
·    IOT pilots in transportation and retail
       
 
Barrie Whipp, Executive Chairman, commented,
 
"I am delighted to report an increase in profitability and turnover in a period where we substantially increased our investment in our sales team.
 
As a result of our decision to invest in additional senior sales professionals, with the associated cost, our pipeline has grown, and we have increased the number and value of our opportunities. As we are dealing with larger and more complex clients, our sales cycle has been extended but we are well positioned to take advantage of transactions that have been under discussion for some months. It should be noted that we are increasing our percentage of BYOD (Bring Your Own Device) business which will impact turnover but, more importantly, improve margins. Our investment in IOT has started to bear fruit and we are hopeful of further announcements in the near future."
 
 
 
Enquiries:
 



Crimson Tide plc                          
Barrie Whipp / Luke Jeffrey
 


01892 542444




Arden Partners
John Llewellyn-Lloyd / Dan Gee-Summons
 


020 7614 5900




 
Chairman's Statement







 
To increase profitability having added high calibre sales professionals to our team, with the associated costs, is very pleasing. Our team has increased our pipeline of business and it is only due to the longer sales cycle with larger clients that our performance was not even better. Importantly, theses sales have not been lost.
 
We have had to be patient as we discuss long term deals with our clients, which can be five-year investments which take time to conclude. The fact that mpro5 can achieve so much for clients sometimes means that we have to present to multiple departments and decision makers to conclude deals.
 
We are excited by our early moves into the transportation sector, which affords us the opportunity to show not only mpro5's capabilities to a wider audience but also to showcase our IOT (Internet of Things)  investments which involve sensors in a wide range of business cases. IOT gives us the ability to track movement, weight and levels as well as sensing temperature, humidity and carbon dioxide levels. The possibilities for mpro5 with IOT are limitless.
 
Our sensible use of our own cash resources to finance our investment in the sales team is typical of our measured, yet ambitious approach to growing the business in an environment where decision making of our clients is understandably cautious.
 
Mpro5 continues to grow as a product. We are currently implementing single sign on and a new CRM section to the client websites. A new component tool, Stencil JS is being implemented by the development team. Our clients continue to demand more from mpro5 and we are currently pursuing integration opportunities, first with Xero accounting software, which will extend mpro5 to being an add on sale to enterprise or SME software.
 
These are early days into our sales growth strategy (approximately six months to June 30, 2019) and the addition of new SaaS contracts should now be well placed to allow us to grow further. We have had small successes in Europe, the Middle East and the United States and our measured investments in these territories mean that any new business will contribute directly to the bottom line.
 
There are so many opportunities for mpro5 it is difficult to expand upon all of them. We continue to do things in our own way, pragmatic yet ambitious, and the Board is confident that we are well placed to add quality, high margin revenue to our base. We have doubled our turnover since 2015 and increased our staff count from 14 to 32. This team is now set to add to our long term contracted base revenues and deliver enhanced results.
 
 
Barrie Whipp
Executive Chairman
27 September 2019
 
 
 




 
Crimson Tide plc
Unaudited Consolidated Income Statement for the 6 months to 30 June 2019
 







Unaudited
6 Months
ended
30 June
2019






Unaudited
6 Months
ended
30 June
2018






Audited
12 Months
ended 31
December
2018












£000






£000






£000


 




























 




Revenue


1,267






1,201






2,398


 




Cost of Sales


(162)






(170)






(324)


 




























 




Gross Profit


1,105






1,031






2,074


 




Overhead expenses


(831)






(807)






(1,581)


 




























 




Earnings before interest, tax, depreciation & amortisation


 
274






 
224






 
493


 




Depreciation & Amortisation


(154)






(202)






(384)


 




























 




Profit from operations


120






22






109


 




Interest payable and similar charges


(19)






(18)






(40)


 




























 




Profit before taxation


101






4






69


 




Taxation


-






-






-


 




























 




Profit for the period attributable to equity holders of the parent


 
101
 






 
4






 
69


 




























 




Earnings per share


Unaudited
6 Months
ended
30 June
2019






Unaudited
6 Months
ended
30 June
2018






Audited
12 Months
ended 31
December
2018








Basic earnings per Ordinary Share


0.02p






0.00p






0.02p


 




Diluted earnings per Ordinary Share


0.02p






0.00p






0.01p


 




























 




























 



 
 
 




 
Unaudited Consolidated Statement of Comprehensive Income
for the 6 months to 30 June 2019
 







Unaudited
6 Months
ended
30 June
2019






Unaudited
6 Months
ended
30 June
2018






Audited
12 Months
ended 31
December
2018












£000






£000






£000


 




























 




Profit for the period


101






4






69


 




 
Other comprehensive income/(loss) for period:






















 




Exchange differences on translating foreign operations


-






(1)






-


 




























 




























 




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


 
101






 
3






 
69


 




























 



                  




Unaudited Consolidated Statement of Financial Position at 30 June 2019
 







Unaudited
As at
30 June
2019






Unaudited
As at
30 June
2018






Audited
As at 31 December 2018








£000






£000






£000




Non-current assets
























Intangible assets


2,019






1,785






1,904




Equipment, fixtures & fittings


354






491






401




Right-of-Use assets


176






-






-




Total non-current assets


2,549






2,276






2,305






























Current assets
























Inventories


14






10






15




Trade and other receivables


1,016






787






935




Cash and cash equivalents


489






782






613




Total current assets


1,519






1,579






1,563




 
Total assets


 
4,068






 
3,855






 
3,868






























Equity and liabilities
























Equity
























Share capital


457






454






457




Share premium


148






121






148




Other reserves


478






420






478




Reverse acquisition reserve


(5,244)






(5,244)






(5,244)




Retained earnings


7,182






7,073






7,081




Total Equity


3,021






2,824






2,920




 
Current liabilities
























Trade and other payables


552






538






572




Finance lease liabilities


188






216






151




Total current liabilities


740






754






723




 
Non-current liabilities
























Finance lease liabilities


307






277






225




Total liabilities


1,047






1,031






948






























Total equity and liabilities


4,068






3,855






3,868








     






     






     



Unaudited Consolidated Statement of Changes In Equity at 30 June 2019
 







 
 
Share capital


 
 
Share premium


 
 
Other reserves


Reverse acquisi-tion reserve


 
 
Retained earnings


 
 
 
Total








£000


£000


£000


£000


£000


£000




Balance at 31 December 2017


454


121


478


(5,244)


7,012


2,821


































Profit for the period


-


-


-


                  -


4


4




Translation movement


-


-


(1)


-


-


(1)




Balance at
30 June 2018


 
454


 
121


 
477


 
(5,244)


 
7,016


 
2,824
































































Balance at 31 December 2018


457


148


478


(5,244)


7,081


2,920




Profit for the period


-


-


-


-


101


101




Translation movement


-


-


-


-


-


-




Balance at
30 June 2019


 
457


 
148


 
478


 
(5,244)


 
7,182


 
3,021



































































Unaudited Consolidated Statement of Cashflows for the 6 months to 30 June 2019
 







Unaudited
6 Months
ended
30 June
2019






Unaudited
6 Months
ended
30 June
2018






Audited
12 Months
ended
31 December
2018








£000






£000






£000




Cash flows from operating activities
























Profit before tax


101






4






69




Adjustments for:
























Amortisation of Intangible Assets


80






71






141




Depreciation of equipment, fixtures and fittings


74






131






243




Interest expense


19






18






40




Operating cash flows before movement in working capital and provisions


274






224






493




Decrease/(increase) in inventories


1






(2)






(7)




(Increase)/decrease in trade and other receivables


(81)






187






70




Decrease in trade and other payables


(20)






(48)






(15)






























Cash generated from operations


174






361






541




Taxes paid


-






-






(32)




Net cash generated in operating activities


174






361






509






























Cash flows used in investing activities
























Purchases of fixed assets


(27)






(12)






(33)




Development expenditure capitalised


(195)






(158)






(347)




Net cash used in investing activities


(222)






(170)






(380)






























Cash flows from financing activities
























Net proceeds from issues of shares


-






-






30




Interest paid


(19)






(18)






(40)




Net decrease in borrowings


(57)






(148)






(263)






























Net cash used in financing activities


(76)






 
(166)






(273)




Net (decrease)/increase in cash and cash equivalents


(124)






25






(144)






























Net cash and cash equivalents at beginning of period


613






757






757




Net cash and cash equivalents at end of period


489






782






613







 
 







Unaudited
6 Months
ended
30 June
2019






Unaudited
6 Months
ended
30 June
2018






Audited
12 Months
ended
31 December
2018








£000






£000






£000




Analysis of net funds
























Cash and cash equivalents


489






782






613




Bank overdraft






-


-






-








489






782






613






























Other borrowings due within one year


(125)






(214)






(151)




Borrowings due after one year


(194)






(277)






(225)






























Net funds


170






291






237





























 
 
 
 
Crimson Tide Plc
 
Notes to the Unaudited Interim Results for the 6 months ended 30 June 2019
 
1.    Basis of preparation of interim report
 
The information for the period ended 30 June 2019 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.
 
The interim financial statements have been prepared in accordance with the recognition and measurement principles of IFRS 16 "Leases". Crimson Tide has adopted IFRS 16 retrospectively from 1 January 2019, but has not restated comparatives for the 2018 reporting period, as permitted under the specific transitional provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening Consolidated Statement of Financial Position on 1 January 2019.
 
The interim financial statements should be read in conjunction with the consolidated financial statements for the year ended 31 December 2018. 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
2019
 


 
Unaudited
 6 Months
ended
30 June
2018
 


 
Audited
 12 Months
ended 31
December
2018
 




Earnings per share
















Reported profit (£000)


101


4


69




Reported basic earnings per share (pence)


0.02


0.00


0.02




Reported diluted earnings per share (pence)


0.02


0.00


0.01



 







 
Unaudited
 6 Months
ended
30 June
2019
 


 
Unaudited
 6 Months
ended
30 June
2018
 


 
Audited
 12 Months
ended 31
December
2018
 








No. 000


No. 000


No. 000




Weighted average number of ordinary shares
















Shares in issue at start of period


457,486


454,486


454,486




Effect of shares issued during the period


-


-


493




Weighted average number of ordinary
shares for basic EPS


 
457,486


 
454,486


 
454,979




Effect of share options outstanding


9,250


10,364


8,581




Weighted average number of ordinary
shares for diluted EPS


 
466,736


 
464,850


 
463,560





















 
 
 




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