REG - Crimson Tide PLC - Second Interim Results
30/05/2025 07:00
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RNS Number : 6869K Crimson Tide PLC 30 May 2025
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time. Upon the publication of this announcement, this information is now considered to be in the public domain.
30 May 2025
Crimson Tide plc
("Crimson Tide", "the Company" or "Group")
Second interim results for the six months ended 31 December 2024
Crimson Tide plc (TIDE), the provider of the mpro5 process management app, is pleased to announce its unaudited second interim results for the six months ended 31 December 2024.
Financial headlines
· Exceptional costs of aborted M&A led to loss of £1m at PBT
level in the period
· Y-o-Y Revenue reduced by 3% due to covid era deal churn and slow
sales cycle
· Change to April Year End with budgets for April '26 evidencing
achievable profitability and cash generation
· High-Margin (87% v 88%) long-term revenue supports refined
strategy
Operational highlights
· Post year end management change, right-sizing of team and refocus
· Generational Software upgrades of web and mobile clients
· Leadership team established improving processes and customer
satisfaction
Barrie Whipp, Chair, commented,
"After a challenging two years involving three approaches for the Company, our
long-term contracted, high-margin revenue model continues to support a base
where we can aim for profitability at all measures including cash, where the
Company is well placed. Our team has been right-sized for our current level of
revenue and is motivated to add new customers. It is just as important to
extend and expand our offering to existing clients and we continue to succeed
in this area. Our software has never been stronger, with significant upgrades
to our mobile, web and automation systems. The Board looks forward with
confidence in our model and our team."
Enquiries:
Crimson Tide plc +44 1892 542444
Barrie Whipp (Interim Executive Chairman)
Peter Hurter (CFO)
Cavendish Capital Markets Limited (Nominated Adviser and Broker) +44 20 7220 0500
Julian Blunt - Corporate Finance
Andrew Burdis - Corporate Broking
Crimson Tide provides mpro5, the process management app. For further
information, see mpro5.com and on Crimson Tide plc, crimsontide.co.uk
Chairman's Statement
Following the uncertainty caused by three proposed corporate transactions that
failed to complete in two years, the Company has produced a creditable
performance on slightly lower revenues. We have changed our accounting year
end to 30th April to better reflect our trading pattern, and also to allow the
significant costs of the above corporate activity to be clearly shown as
exceptional items. This has allowed us to set budgets for this, and the coming
years focused on profitability across all measures as well as cash
generation.
During the period, we did not add new recurring revenues at the level we
hoped. Part of the reason for this was due to management time being diverted
onto corporate work, while part was due to customer signature delays and
lengthening sales cycles. However, a five-year contract to provide mpro5 to
the consortium managing London's Elizabeth line demonstrates mpro5's
attractiveness as a long-term solution to enterprise level clients. A
particular food safety sale in the US highlights how we can assist companies
make effective strides in food related compliance.
During the second half, we consciously reduced overhead to fit our developing
business model, and this will mean that we run an even leaner operation than
previously. I reemphasize that our focus now is on profitability whilst still
allowing us to invest selectively in marketing and growth strategies, which
will aid our growth in the coming years.
As far as our product is concerned, we have made generational upgrades to our
mobile client, culminating in our Saturn release in the period, and 2025 will
see us accelerate the amortisation of our legacy mobile software. Saturn
brings more efficient processing, enhanced functionality and a sleek user
interface for mobile users, supported by the latest versions of Ionic and
Angular technologies. Our Odyssey web client will not only make our own staff
more efficient, but it will also make usage of mpro5 on the web by our clients
more easy and more intuitive. Clients will be able to use mpro5 without our
intervention, which should aid new sales as well as enhance the experience for
existing customers. Our Odyssey investment should also further increase
margins, which are already approaching 90%. We have commenced our evolution of
our Onwards software which simplifies procedures into mpro5's new Titan
process configurator. We are exploring mpro5's AI potential, an enhancement of
Titan, not an entirely new technology, in the second half of the year. Our
product has never been stronger, and its flexibility sets it apart from
competitor offerings.
Operationally we have been successful in right-sizing our team and are
concentrating on customer satisfaction with mpro5 to improve our CSat and NPS
figures. We experienced slippage during the corporate activities as management
focus was blurred. We continue to renew and upsell to clients, our preferred
sales methodology, but our churn was disappointing due to a customer selecting
a weaker, but cheaper solution at the end of our contract.
Our Balance Sheet has experienced a revaluation of our software intangible
asset to reflect a desire to shorten our amortization period and reduce the
valuation of legacy software. Our goal is that capitalized development cost is
similar to the amortized value on an annual basis reflecting continual
improvements in our product. Cash was strong, save for fees on the aborted
transactions.
In summary, few organisations will have experienced the distractions of three
approaches for the Company in two years. It is entirely expected that
performance would be adversely affected. I stepped in as Interim Executive
Chair to regularize and refocus the business. This has been achieved in short
order, and our strategy is being implemented by our management team, focusing
first on profitable performance and then on new growth tactics based upon
direct business development. A process of selecting a new Chair is under way
and an announcement can be expected soon. Peter Hurter has now agreed to
remain in post as CFO pending appointment of a replacement, the process for
which is also now well under way.
I am confident that the Company, after a reset at the top line and with
operating costs tailored accordingly, will be profitable, cash generative and
in safe hands.
Barrie Whipp
Interim Executive Chairman
30 May 2025
Financial Review
Financial indicator Six months ended 31 December 2024 Six months ended 31 December 2023 Year ended 31 December 2024 Year ended 31 December 2023
£'000 £'000
£'000 £'000
Revenue 2,829 3,112 5,971 6,155
Gross Profit 2,455 2,740 5,226 5,306
Exceptional items (one-off) (495) - (495) -
(LBITDA)/EBITDA (198) 314 130 420
Loss before tax (1,000) (217) (1,211) (688)
Annual recurring revenue (ARR) 5,241 5,750 5,241 5,750
Cash 2,066 3,255 2,066 3,255
Churn rate 14.9% 16.0% 14.9% 16.0%
Revenue
The revenue decrease of 9% compared to the corresponding period in 2023
relates to the conclusion of two Covid-era deals where the customers'
requirements have changed. These contracts represent 10.2% of the churn for
the period. High demand from existing customers for one-off projects
contributed 10% to revenue. At least one of these projects have culminated in
recurring revenue upsell post period-end, and illustrates the continued
success of the Company's land-and-expand strategy. Revenue for the full-year
period consequently only decreased 3% compared to 2023. The marginal
reduction in the gross profit rate of 86.8% (H2 2023: 88%) relates to
maintaining the cloud infrastructure of both the legacy app and the new
Odyssey web client. This rate is expected to improve as customers migrate to
the new version.
Exceptional items
Exceptional items include redundancy costs of approximately £0.43m. These
costs will contribute approximately £1m to savings on an annualised basis
post period-end. Other exceptional items relate to professional fees in
relation to the bid approach made by Ideagen Limited in June 2024.
Cashflow and liquidity
Cash at the period-end was £2.1m (H2 2023: £3.3m). Net cash contributed by
operating activities was £0.2m (H2 2023: £1.2m).
Lease liabilities
Lease liabilities relate to an office lease agreement which was concluded at
the beginning of 2022. The lease liability is currently valued at £0.5m (H2
2023: £0.7m) and the related Right-of-Use asset recognised under IFRS16. The
lease liability will be settled, and the related asset depreciated, over a
5-year period.
Intangible assets
Software development costs of £0.5m (H2 2023: £0.8m) were capitalised during
the period under review, while amortisation amounted to £0.3m (H2 2023:
£0.3m). The value of the capitalised software intangible asset at period-end
was £3.5m (H2 2023: £3.3m). Other intangible assets related to goodwill,
website development costs and incremental contract costs. As previously
announced, we expect the 16-month results to 30 April 2025 to show a
write-down of approximately £1.0m in relation to the carrying value of the
Company's intangible software asset and a change of the related amortization
period to six years (currently seven years).
Loss before taxation
The Company made a loss before taxation of £1m (H2 2023: £0.2m loss). This
loss includes the exceptional items of £0.5m (H2 2023: £0) referred to
above.
Earnings per share
Basic and diluted loss per share was 14.78p (H2 2023: 0.52p loss per share)
during the period under review. 124,000 share options outstanding were not
included in the calculation of diluted earnings per share because they are
anti-dilutive in terms of IAS 33.
Crimson Tide plc
Condensed Consolidated Statement of Profit or Loss
for the 6 months to 31 December 2024
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
31 December 31 December December
2024 2023 2023
£000 £000 £000
Revenue 2,829 3,112 6,155
Cost of Sales (374) (372) (849)
Gross Profit 2,455 2,740 5,306
Other income 1 - -
Administrative expenses (3,440) (2,943) (5,942)
Finance costs (16) (14) (52)
Loss before income tax expense (1,000) (217) (688)
Taxation 28 183 383
Loss after taxation (972) (34) (305)
Loss per share Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
31 December 31 December December
2024 2023 2023
Basic (pence) (14.78) (0.52) (4.64)
Diluted (pence) (14.78) (0.52) (4.64)
Condensed Consolidated Statement of Comprehensive Income
for the 6 months to 30 June 2024
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended 31
31 December 31 December December
2024 2023 2023
£000 £000 £000
Loss for the period (972) (34) (305)
Other comprehensive income/(loss) for period:
Exchange differences on translating foreign operations 94 (1) (19)
Total comprehensive loss recognised in the period and attributable to equity
holders of parent
(878) (35) (324)
Condensed Consolidated Statement of Financial Position at 31 December 2024
Unaudited Audited
As at 31 As at 31 December 2023
December
2024
£000 £000
ASSETS
Non-current assets
Intangible assets 4,353 4,440
Property, plant & equipment 175 237
Right-of-use asset 418 571
Total non-current assets 4,946 5,248
Current assets
Trade and other receivables 1,167 1,182
Cash and cash equivalents 2,066 3,255
Total current assets 3,233 4,437
Total assets 8,179 9,685
LIABILITIES
Current liabilities
Trade and other payables 1,199 1,514
Lease liabilities 223 199
Total current liabilities 1,422 1,713
Non-current liabilities
Lease liabilities 273 468
Total non-current liabilities 273 468
Total liabilities 1,695 2,181
Net assets 6,484 7,504
EQUITY
Share capital 657 657
Share premium 5,590 5,590
Other reserves 430 427
Reverse acquisition reserve (5,244) (5,244)
Retained earnings 5,051 6,074
Total equity 6,484 7,504
Condensed Consolidated Statement of Changes in Equity
Six-month period ended 31 December 2024 (Unaudited)
Reverse acq'n reserve
Share capital Share premium Other reserves Retained earnings
Total
£000 £000 £000 £000 £000 £000
Balance at 30 June 2024 657 5,590 336 (5,244) 6,023 7,362
Loss for the period - - - - (972) (972)
Translation movement - - 94 - - 94
Balance at 31
December 2024 657 5,590 430 (5,244) 5,051 6,484
Six-month period ended 31 December 2023 (Unaudited)
Reverse acq'n reserve
Share capital Share premium Other reserves Retained earnings
Total
£000 £000 £000 £000 £000 £000
Balance at 30 June 2023 657 5,590 460 (5,244) 6,039 7,502
Loss for the period - - - - (34) (34)
Cancelled share options - - (26) - 69 43
Share options expense - - (6) - - (6)
Translation movement - - (1) - - (1)
Balance at 31
December 2023
657
5,590
427
(5,244) 6,074 7,504
Condensed Consolidated Statement of Changes in Equity
Year ended 31 December 2023 (Audited)
Reverse acquisi-tion reserve
Share capital Share premium Other reserves Retained earnings
Total
£000 £000 £000 £000 £000 £000
Balance at 1 January 2023 657 5,590 493 (5,244) 6,310 7,806
Loss for the period - - - - (305) (305)
Share options cancelled - - (69) - 69 -
Share options expense - - 22 - - 22
Translation movement - - (19) - - (19)
Balance at
31 December 2023 657 5,590 427 (5,244) 6,074 7,504
Condensed Consolidated Statement of Cash flows
For the 6 months to 31 December 2024
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
31 December 31 December 31 December
2024 2023 2023
£000 £000 £000
Cash flows from operating activities
Loss before tax (1,000) (217) (688)
Adjustments for:
Amortisation of Intangible Assets 651 387 758
Depreciation of property, plant and equipment 35 39 74
Depreciation of right-of-use assets 100 73 206
Unrealised currency translation movement 94 (1) (19)
Interest Paid 16 14 52
Share option expense - 37 22
Operating cash flows before movement in (104) 332 405
working capital and provisions
Decrease in trade and other receivables 88 720 464
Increase/(decrease) in trade and other payables 51 (155) 54
Cash generated by operations 35 897 923
Interest paid in cash (16) (54) (52)
Income taxes received 220 407 407
Income taxes paid (32) (24) (24)
Net cash generated from operating 207 1,226 1,254
activities
Cash flows from investing activities
Purchases of property, plant and equipment (2) (13) (47)
Purchases of other intangible assets (6) 77 (223)
Development expenditure capitalised (542) (662) (1,163)
Net cash used in investing activities (550) (598) (1,433)
Cash flows from financing activities
Repayments of lease liability (93) (238) (184)
Net cash used in financing activities (93) (238) (184)
Net movement in cash and cash equivalents (436) 390 (363)
Net cash and cash equivalents at beginning of period 2,502 2,865 3,618
Net cash and cash equivalents at end of period 2,066 3,255 3,255
Crimson Tide Plc
Notes to the Unaudited Second Interim Results for the 6 months ended 31
December 2024
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's shares are publicly traded on
the London Stock Exchange's AIM market. The address of its registered office
is Brockbourne House, 77 Mt. Ephraim, Tunbridge Wells, Kent, TN4 8BS.
Basis of preparation
The condensed consolidated second interim financial statements ("interim
financial statements") have been prepared using accounting policies that
are consistent with those applied in the previously published financial
statements for the year ended 31 December 2023, which have been prepared in
accordance with UK-Adopted International Accounting Standards.
The information for the period ended 31 December 2024 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 2023. A copy
of the statutory accounts for that period has been delivered to the Registrar
of Companies and is available on the Company's website. 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.
Key estimates and judgements used in the preparation of the interim financial
statements remain unchanged from those noted in the published financial
statements for the year ended 31 December 2023.
Going concern
The interim 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 three main regional centres of operation; one in the UK, the
others in Ireland and the United States 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 and (ii) non-core
software solutions, including reselling third party software and related
development and support services.
Segment information for the reporting periods is as follows:
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
Ended 31 Ended 31 ended 31
December December December
2024 2023 2023
£000 £000 £000
Revenue by business activity
Mobility solutions and related development 2,467 2,733 5,612
Software consultancy 362 379 543
2,829 3,112 6,155
Revenue can be further analysed by geographic reason as follows:
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
Ended 31 Ended 31 ended 31
December December December
2024 2023 2023
£000 £000 £000
Revenue by geographic region
UK 2,553 2,843 5,636
Ireland 221 233 424
US 55 36 95
2,829 3,112 6,155
3. Intangible assets
Consumer focused development expenditure
Enterprise development expenditure Website dev'ment costs
Incremental contract costs
Goodwill Total
£000 £000 £000 £000 £000 £000
Cost
At 1 July 2024 5,371 960 106 1,098 989 8,524
Additions 481 - 3 - - 484
At 31 December 2024 5,852 960 109 1,098 989 8,040
Consumer focused development expenditure
Enterprise development expenditure Website dev'ment costs
Incremental contract costs
Goodwill Total
£000 £000 £000 £000 £000 £000
Amortisation and impairment
At 1 July 2024 (2,543) (253) (70) (1,086) (190) (4,142)
Charge for the period (284) (198) (19) (12) - (513)
At 31 December 2024 (2,827) (451) (89) (1,098) (190) (3,629)
Carrying amount at 31 December 2023 2,516 831 46 248 799 4,440
Carrying amount at 31 December 2024 3,025 509 20 - 799 4,353
4. 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 loss 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 loss and weighted average number of ordinary shares
used in the calculation are set out below:
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended 31 ended 31 ended 31
December December December
2024 2023 2023
Earnings per share
Reported loss (£000) (972) (34) (305)
Reported basic earnings per share (pence) (14.78) (0.52) (4.64)
Reported diluted earnings per share (pence) (14.78) (0.52) (4.64)
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended 31 ended 31 ended 31
December December December
2024 2023 2023
No. '000 No. '000 No. '000
Weighted average number of ordinary shares
Shares in issue at start of period 6,575 6,575 6,575
Effect of shares issued during the period - - -
Weighted average number of ordinary
shares for basic EPS 6,575 6,575 6,575
Effect of share options outstanding - - -
Weighted average number of ordinary
shares for diluted EPS 6,575 6,575 6,575
On 31 October 2023 the Company completed a 100:1 share consolidation exercise.
Basic and diluted EPS were retrospectively adjusted in accordance with the
requirements of IAS 33 to achieve comparability.
At 31 December 2024 there were 124,000 (31 December 2023: 131,000) share
options outstanding. These share options were not included in the calculation
of diluted earnings per share because they are antidilutive in terms of IAS
33. The reduction in share options relates to the resignation of certain
employees who held options, and as a result, in accordance with the terms of
the share option agreements, the options were cancelled.
5. Related party transactions
Other than the interests of Directors, being in shares, share options and
remuneration, no transactions with related parties were undertaken such as are
required to be disclosed under International Accounting Standard 24.
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