REG - Crimson Tide PLC - Interim Results

Crimson TideAnnouncement

28/09/2021 07:00

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 £2,015k (H1 2020: £1,770k)
·      EBITDA increase of 12.5% to £529k (H1 2020: £470k)
·      Profit before tax increased by 11.3% to £286k (H1 2020: £257)
·      Fundraise of £5.6m (net of fees) finalised during April 2021, of which £250k 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 £6.5m, 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 ended 30 June 2021

£'000


Six months ended 30 June 2020

£'000


Increase



%


Year ended 31 December 2020

£'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 c£300,000 (H1 2020: c£235,000). Consultancy fees contributed £178,000 to revenue during the period (H1 2020: £255,000). 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 £530,000 (H1 2020: £476,000). Although cash generated by operations of £111,000 (H1 2020: £1.03 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 c£1m. Following the successful raise of £5.6 million (net of fees) at the end of April, the Company has spent approximately £250,000 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 £205,000 (H1 2020: £410,000) 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 £259,000 (H1 2020: £229,000) were capitalised during the period under review, while amortisation amounted to £123,000 (H1 2020: £100,000). The value of the capitalised software intangible asset at period-end was £1.8 million (H1 2020: £1.45 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 
6 Months
ended 
30 June
2021


 


Unaudited 
6 Months
ended 
30 June
2020


 


Audited 
12 Months
ended 31 
December
2020


 




 


£000


 


£000


 


£000


 




 


 


 


 


 


 


 




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 
6 Months
ended 
30 June
2021


 


Unaudited 
6 Months
ended 
30 June
2020


 


Audited 
12 Months
ended 31 
December
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 
6 Months
ended 
30 June
2021


 


Unaudited 
6 Months
ended 
30 June
2020


 


Audited 
12 Months
ended 31 
December
2020


 




 


£000


 


£000


 


£000


 




 


 


 


 


 


 


 




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
As at 
30 June 
2021


 


Unaudited
As at 
30 June 
2020


 


Audited
As at 31 December 2020




 


£000


 


£000


 


£000




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)
 




 
 
 


 
 
Share capital


 
 
Share premium


 
 
Other reserves


Reverse acquisi-tion reserve


 
 
Retained earnings


 
 
 
Total




 


£000


£000


£000


£000


£000


£000




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)




 


 
 
Share capital


 
 
Share premium


 
 
Other reserves


Reverse acquisi-tion reserve


 
 
Retained earnings


 
 
 
Total




 


£000


£000


£000


£000


£000


£000




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)




 


 
 
Share capital


 
 
Share premium


 
 
Other reserves


Reverse acquisi-tion reserve


 
 
Retained earnings


 
 
 
Total




 


£000


£000


£000


£000


£000


£000
 




 


 


 


 


 


 


 




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
6 Months 
ended 
30 June 
2021


 


Unaudited
6 Months 
ended 
30 June 
2020


 


Audited
12 Months 
ended 
31 December 
2020




 


£000


 


£000


 


£000




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
 6 Months 
ended
30 June 
2021
 


 
Unaudited
 6 Months 
ended
30 June 
2020
 


 
Audited
 12 Months 
ended 31
December 
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
 6 Months 
ended
30 June 
2021
 


 
Unaudited
 6 Months 
ended
30 June 
2020
 


 
Audited
 12 Months 
ended 31
December 
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
 6 Months 
ended
30 June 
2021
 


 
Unaudited
 6 Months 
ended
30 June 
2020
 


 
Audited
 12 Months 
ended 31
December 
2020
 




Earnings per share


 


 


 




Reported profit (£000)


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
 6 Months 
ended
30 June 
2021
 


 
Unaudited
 6 Months 
ended
30 June 
2020
 


 
Audited
 12 Months 
ended 31
December 
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 the period*


76,243


-


-




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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