REG - Crimson Tide PLC - Year End Trading Update

Crimson TideAnnouncement

05/05/2026 07:00

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RNS Number : 9431C  Crimson Tide PLC  05 May 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET
ABUSE REGULATION NO. 596/2014 (AS INCORPORATED INTO UK LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 AS AMENDED BY VIRTUE OF THE MARKET ABUSE
(AMENDMENT) (EU EXIT) REGULATIONS 2019). UPON THE PUBLICATION OF THIS
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS
NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

5 May 2026

Crimson Tide plc

("Crimson Tide", the "Company" or the "Group")

 

Year-End Trading Update

 

Crimson Tide plc (AIM: TIDE), the provider of the mpro5 operational compliance
platform, is pleased to provide an update on trading for the financial year
ended 30 April 2026 ("FY26"). The Group has continued to make strong
operational and financial progress during FY26, with significant improvement
in unaudited EBITDA, profit after tax and cash generation compared with the
prior 16 month period ended 30 April 2025 ("FY25").

 

Following the change in the Group's financial year‑end, comparative
information includes both reported statutory results for the prior 16‑month
period ended 30 April 2026 and pro forma figures for FY25 presented on a
12‑month basis for comparability. The financial information in this
announcement is unaudited save for FY25 figures.

 

Highlights

 

·    Strong operational and financial turnaround in FY26, with a return to
profitability and materially improved cash generation, underpinned by
disciplined cost control and a resilient recurring revenue base.

o  Revenue of £5.9 million (FY25: £5.9 million on a pro forma 12‑month
basis)

o  EBITDA of £1.2 million (FY25: EBITDA loss of £0.1 million)

o  Cash of £2.1 million at 30 April 2026 (£1.3 million at 30 April 2025)
and no bank debt

 

·    Significant progress in strengthening the Group's commercial
foundations, including a landmark contract renewal, early momentum in the US,
and a sharpened go‑to‑market focus to support sustainable growth.

 

·    Delivery of a more scalable operating model during the year, with
enhanced customer success and onboarding processes designed to drive
materially lower churn going forward.

 

·    The Group enters FY27 with a stronger balance sheet, lower contract
renewal exposure, and a growing pipeline, providing confidence in its
medium‑term growth trajectory despite near‑term revenue impact from FY26
churn.

 

Financial highlights

 

Revenue for FY26 was £5.9 million. The prior period revenue of £7.9 million
reflects a 16-month period to 30 April 2025 and is therefore not directly
comparable with the current 12-month year. On a 12-month pro-rata basis, prior
period recurring revenue was approximately £5.9 million.

 

The Group anticipates reporting EBITDA of approximately £1.2 million for
FY26, compared with a loss of £0.1 million in the prior 16-month period,
demonstrating the significant operational and financial progress made during
the year.

 

The Group also anticipates reporting a profit after tax of approximately £0.3
million, a significant turnaround from the £2.0 million loss after tax
reported for the prior 16 month period.

 

The Group remains cash generative, and cash at 30 April 2026 was approximately
£2.1 million and no bank debt, representing an increase of approximately 62%
from the £1.3 million reported at 30 April 2025, reflecting the Group's
continued focus on disciplined cash management and cost savings delivered
across the business during the year.

 

MRR (monthly recurring revenue) at the start of the financial year was £468k
and closed the year at £397k. As previously announced on 24 December 2025,
the Group received formal notice from one of its customers that it intended to
exercise a break clause in its contract, with effect from 31 March 2026. This
represented approximately £61k of MRR reduction. As noted, the conclusion of
this contract, which required significant bespoke development, has released
meaningful resources to accelerate core platform development and pursue higher
margin, scalable opportunities. The remainder of the reduction in MRR reflects
the conclusion of a small number of lower-value contracts during the year
offset by  new wins. Otherwise, momentum was sustained across renewals, new
customers and retention activity throughout the year.

 

Overall gross revenue churn for the period was approximately 28%, with the
contract loss announced on 24 December 2025 representing the single most
significant contributor. Approximately 70% of the Group's recurring revenue
was subject to contract renewal during the year, an unusually high proportion
for the business.

 

Churn during the period was also influenced by residual disruption arising
from three corporate takeover approaches over the preceding two years, which
had impacted customer engagement and renewal activity.

 

A number of these customer decisions had already been made prior to the
current management team taking office, and there was insufficient time to
intervene or remediate the underlying relationships before the notice periods
concluded. The combination of these factors is not expected to repeat, and the
Group enters the new financial year with a significantly lower proportion of
contract revenue due for renewal.

 

Alongside the work undertaken to build out dedicated customer success, support
and solutions  functions, the Board believes the Group is well positioned to
achieve a materially lower level of churn in the new financial year.

 

Commercial highlights

 

The year has seen a number of significant commercial milestones that
demonstrate the strength and breadth of the mpro5 platform.

 

In November 2025, the Group secured a landmark three-year contract extension
with one of the world's largest retailers, representing a TCV of £3.88
million and MRR of £108k. mpro5 is deployed across more than 3,000 of the
customer's retail locations in the UK and Ireland, supporting over 30 distinct
operational services, and the renewal reflects the platform's position as a
mission-critical tool within the customer's day-to-day operations.

 

The Group has also made encouraging progress in the United States, securing a
new customer (3Z Brands). This reflects the Group's continued investment in
its US commercial capability and represents an important step in building a
sustainable presence in that market.

 

Beyond new wins, the Group has seen continued contractual uplift from its
existing customer base, with a number of customers expanding their use of the
mpro5 platform during the year through additional modules, increased user
volumes and broader deployments. This land and expand dynamic is central to
the Group's growth strategy and is beginning to contribute meaningfully to
recurring revenue growth.

 

Operating model and strategy

 

During the year, the Group undertook a period of purposeful change focused on
building the foundations required to support scalable growth. The staffing
structure has been strengthened and optimised, resulting in a well-balanced
and experienced team that is appropriately sized to deliver the Group's
expected growth, without the need for significant additional headcount in the
near term.

 

During the year, the Group also rolled out artificial intelligence (AI) tools
across the business, which have already delivered material improvements in
productivity, shaping the way the team works, develops and supports the mpro5
platform.

 

The Group has implemented a new customer excellence operating model, with a
focus on improved onboarding, service consistency and proactive customer
engagement. Alongside this, the Group has strengthened its go to market
strategy, increasing focus on a land and expand approach and a modularised
product offering, enabling customers to adopt specific functionality without
the need for bespoke customisation.

 

The Group has also made further progress in reducing its cost base beyond
headcount, including significant savings in overheads, which will deliver
further savings in the current financial year. These reductions, combined with
the continued discipline applied across the wider cost base, will contribute
to the Group's improving profitability profile.

 

In parallel, the Group has increased its investment in marketing during the
year, strengthening brand visibility and lead generation capability, with a
number of initiatives now being launched. This investment supports the Group's
commercial ambitions, building pipeline and raising awareness of the mpro5
platform across the Group's target verticals of retail, food safety and
facilities management.

 

Outlook

 

The Board is encouraged by the progress made during the year and believes the
Group enters the new financial year in a stronger operational and financial
position than at any point in recent years.

 

As referenced above, the Board anticipates churn in the new financial year to
be significantly lower than the level experienced in FY26, and less than 10%,
reflecting the structural improvements made to the customer success, support
and solutions functions and the lower proportion of revenue subject to
contract renewal.

 

The Board acknowledges that revenue in the financial year ending 30 April 2027
("FY27") will reflect the impact of churn experienced during FY26 and that
this will result in a lower revenue base. However, the cost base has been
carefully structured to reflect this, with targeted investment in sales and
marketing to drive pipeline growth and accelerate new customer acquisition,
positioning the Group for a return to revenue growth in FY27.

 

The new business pipeline is healthy and growing, with a number of
opportunities at an advanced stage and anticipated to convert in the next few
months. The Group's go to market strategy is now entering its roll out phase
and the Board expects it to generate strong commercial momentum in the year
ahead, supported by a highly competitive product that continues to evolve at
pace.

 

The development team is actively delivering new features that add measurable
value for customers whilst further improving the scalability and performance
of the platform.

 

Underpinning this is a motivated and aligned team, united around a clear
strategy and a shared ambition to build a business that delivers long-term
value for customers and shareholders alike.

 

A further update will be provided when the Group announces its audited full
year results, which are expected to be released in September 2026.

 

Jon Clarke, Chief Executive Officer of Crimson Tide plc, commented:

 

"I'm pleased to confirm that phase one of our growth strategy is complete. I
am proud of what the team has achieved in FY26 given the situation we
inherited. We now move into the next phase, and this is where the hard work
will pay off.

 

The path to growth is clear and we are pursuing it on three fronts:

 

·    significantly reduced churn, underpinned by the customer success
model, tools and processes we have built this year and a lower proportion of
revenue due for renewal;

 

·    new business growth, driven by a go to market strategy that is now
rolling out across our core verticals with a strong and growing pipeline
behind it; and

 

·    expansion within our existing customer base, as more customers adopt
additional modules and broaden their use of the mpro5 platform.

 

The product is in great shape and moving fast, and we have a motivated team
aligned around a clear goal. The foundations are solid, supported by a
strengthened Board, with the recently appointed NEDs Nicky Chenery and Ira
Roxburgh already bringing deep expertise in SaaS go to market execution and
product leadership.

 

I look forward to seeing the results of everything we have built as we drive
the business into its next stage of growth."

 

Enquiries:

 Crimson Tide plc                                              +44 1892 542444

 Chris Fielding, Non-Executive Chair

 Jon Clarke, Chief Executive Officer

 Rachael Rowe, Finance Director

 Allenby Capital Limited - Nominated Adviser & Broker          +44 (0)20 3328 5656

 Jeremy Porter / Ashur Joseph (Corporate Finance)              info@allenbycapital.com

 Tony Quirke / Lauren Wright (Sales & Corporate Broking)

 

The person responsible for arranging the release of this announcement on
behalf of the Company is Rachael Rowe, Finance Director of the Company.

 

Forward-Looking Statements

This announcement contains certain forward-looking statements which have been
made by the Directors in good faith based on the information available to them
at the time of this announcement. By their nature, forward-looking statements
involve risk and uncertainty because they relate to events and depend upon
circumstances that may or may not occur in the future. Actual results,
performance or achievements may differ materially from those expressed or
implied by such forward-looking statements. No reliance should be placed on
such statements, and they should not be construed as a representation that
results or expectations will be achieved. The forward-looking statements
reflect knowledge and information available at the date of preparation of this
announcement. Nothing in this announcement should be construed as a profit
forecast.

 

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