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Crimson Tide PLC  -  TIDE   

Interim Results

Released 07:00 07-Sep-2017

RNS Number : 0266Q
Crimson Tide PLC
07 September 2017
 

Crimson Tide plc

 

("Crimson Tide" or "the Company")

 

Interim Results for the six months ended 30 June 2017

 

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 2017.

 

Highlights

 

·     Revenues 32% up on 1H 2016 (£1,114k vs. £845k)

 

·     Profit Before Tax 16% higher at £142k (1H 2016: £122k);

 

·     Cash generated from operations over 70% higher than 1H 2016 (£365k vs £212k)

 

·     Good progress with planned international expansion

 

 

Barrie Whipp, Executive Chairman, commented,

 

"We have invested in sales & marketing resources to ensure that we can take Crimson Tide to the next level. Our performance has been very good and we are very excited about the latest release of mpro5 which is a sea change in terms of performance and usability. The breadth of mpro5's capabilities is starting to be recognised in new markets with a wide range of new opportunities. We are very excited for the future"

 

 

 

Enquiries:

 

Crimson Tide plc                          

Barrie Whipp / Steve Goodwin

 

01892 542444

WH Ireland Limited                     

James Joyce / James Bavister 

 

020 7220 1666

 

 

 

 

Chairman's Statement

 

In the first half of 2017, the Company concentrated on setting out to expand mpro5's reach into both existing markets and new economies. This strategy is starting to see early results in a number of new areas.

 

The mpro5 mobile application has been upgraded to a brand new development platform. Whilst continuing to leverage Microsoft Azure's capabilities we have changed to a new framework developed in Angular and Ionic. The changes in terms of performance and usability is dramatic, bringing the power of our extremely robust infrastructure to a much more intuitive and fast experience for our users. We are working on new Internet of Things ("IoT") opportunities for mpro5 and believe that we have just as much to excite clients as organisations that only specialise in this nascent area.

 

We are seeing opportunities develop in all of the overseas markets that we have invested in. We are pleased that our investments have been tactical. Rather than setting up unnecessary infrastructure we have focused on finding individuals who can exploit our existing uses of mpro5 in overseas markets and using our existing technical staff to assist them in gaining traction.

 

In the UK & Ireland, we have been working hard to expand our footprint and a number of enterprise level transactions are under way. Our turnover has increased quite significantly and, of course, is now almost entirely comprised of long term and contracted subscriber revenue. 

 

Our new geographic bases in the UAE, Netherlands, US and Australia are being progressed by parties that the Company already knew or that its associates have introduced. We therefore have a level of trust that matters are being progressed in our corporate style and with our core values in mind. There is at least as much potential in these markets as in our existing footprint.

 

Our profitability increased during the period, however this was not the Board's primary consideration for 2017. We wanted to continue to be profitable in an investment and expansion stage of our development and I am particularly pleased that we achieved this balance. It is our intention to continue to invest and expand and we are mindful of not properly exploiting the opportunities in front of us. The message to our team is that we are aiming to be a much larger entity in the coming years than our previous base allowed.

 

This year has presented new challenges, but more importantly significantly greater opportunities. We believe we are well set for continued growth and are continuing to prosecute a bolder strategy. Stakeholders have been extremely supportive of our investment programme and we will continue to explore these opportunities and support our new staff and partners in elevating the Company to the next level.  

 

Barrie Whipp

Executive Chairman

7th September 2017

 

 

Operating and Financial Review

 

I am pleased to provide a review our operating and financial performance over the first half of 2017 and comment on our results for the six months to 30 June 2017.

 

Operating Review

 

The Company accelerated plans to expand internationally during the latter part of 2016 and these efforts have continued during the first half of 2017.  At the same time, further organic growth in the UK has underpinned the resulting higher operating costs.

 

Looking in turn at these two strategic routes to higher growth, the Company is currently progressing well with expansion plans in continental Europe.  We have already won new business through the efforts of our Netherlands based sales resource and are optimistic that our larger UK customers will use our mpro5 services in their European operations.  Further afield in the UAE, our agreement with the British Centres for Business has started to produce enterprise level opportunities and to help progress these we now have a dedicated resource based in Dubai.  In the US, we are participating in the CARIN Alliance, a multi-sector collaborative, working to advance the exchange of health information and deliver solid pharmacovigilance and digitalised healthcare and in Australia, from where our Technical Director has recently returned from a very encouraging business trip, our partner, Mobilise IT, is working on opportunities we have identified.

 

It is worth reminding shareholders that our mpro5 solution is an enterprise class mobility platform that mobilises our customers' workflows so that staff in the field using for example an Apple, Android or Microsoft smartphone or tablet are empowered to get their work completed more efficiently, eliminating errors and greatly increasing their productivity.  All data collected by staff in the field is synchronised to Microsoft Azure Cloud and immediately available via a dedicated mpro5 website allowing office based management teams access to schedule work and report via real time dashboards, instant alerts, and emailed reports.  Our solution can utilise photos, GPS positioning, bar code scans and signatures and this financial year, we are investing in Internet of Things ("IoT") technology to potentially use smart sensors from motion to temperature & humidity, and Bluetooth devices for intelligent and proactive data collection.  Customers contract to use these services, simply paying a fixed monthly subscription, for an agreed initial term.

 

The quality of our mpro5 solution and the level of service and support received by new and existing customers has continued to drive organic growth. Subscription contracts are frequently renewed on or before the end of their initial term by customers to cater for additional users or secure the service for a further term so that their core processes, including mpro5, are safeguarded.

 

During the period, we have added resources to the technical and support operations so that mpro5 can continue to be rolled out to any new and additional users without delay.  In the same vein, we have strengthened our marketing function to ensure our opportunity pipeline, both in the UK and further afield, continues to build.  In summary, 2017 to date has seen an operational step change to prepare the business for new levels of activity.

 

 

Financial Review

 

Turnover for the six months to 30 June 2017 increased to £1,114k, up 32% on the same period in 2016 (1H 2016: £845k). With gross profit margins remaining over 90% and operating margins before depreciation, amortisation and interest of 32%, the business continues to show the benefits of its high operational gearing with additional revenues adding significantly to net profits.

 

After depreciation, amortisation and interest costs, the Group achieved a profit before tax of £142k in the first half 2017 (1H 2016: £122k).

 

There have been no changes to Crimson Tide's accounting policies which can be found in the notes to the published 2016 Consolidated Financial Statements available on our website, www.crimsontide.co.uk.

 

 

Future Prospects

 

Our investments to accelerate future growth have largely contributed to the 31% increase in overheads over the same period last year, and while there will be a lag between making these investments and the resulting growth, the Board are convinced that this strategy will be to the medium term benefit of shareholders.  We continue to work hard to ensure that we achieve this success.

 

 

Stephen Goodwin

Finance Director

7th September 2017



Crimson Tide plc

Unaudited Consolidated Income Statement for the 6 months to 30 June 2017

 


Unaudited

6 Months

ended

30 June

2017


Unaudited

6 Months

ended

30 June

2016


Audited

12 Months

ended 31

December

2016



£000


£000


£000

 







 

Revenue

1,114


845


1,860

 

Cost of Sales

(109)


(71)


(159)

 







 

Gross Profit

1,005


774


1,701

 

Overhead expenses

(647)


(493)


(1,009)

 







 

Earnings before interest, tax, depreciation & amortisation

 

358


 

281


 

692

 

Depreciation & Amortisation

(189)


(142)


(303)

 







 

Profit from operations

169


139


389

 

Interest income

-


-


-

 

Interest payable and similar charges

(27)


(17)


(37)

 







 

Profit before taxation

142


122


352

 

Taxation

-


-


(4)

 







 

Profit for the year attributable to equity holders of the parent

 

142


 

122


 

348

 







 

Earnings per share

Unaudited

6 Months

ended

30 June

2017


Unaudited

6 Months

ended

30 June

2016


Audited

12 Months

ended 31

December

2016


Basic and diluted earnings per Ordinary Share

0.03p


0.03p


0.08p

 

(see Note 2)






 

 

 

 

 

 

 

 



 

Unaudited Consolidated Statement of Comprehensive Income for the 6 months to 30 June 2017

 


Unaudited

6 Months

ended

30 June

2017


Unaudited

6 Months

ended

30 June

2016


Audited

12 Months

ended 31

December

2016



£000


£000


£000

 

Profit for the period

142


122


348

 

 

Other comprehensive income/(loss) for period:






 

Exchange differences on translating foreign operations

(2)


1


1

 







 







 

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

 

140


 

123


 

349

 







 

                  

 

Unaudited Consolidated Statement of Financial Position at 30 June 2017

 


Unaudited

As at

30 June

2017


Unaudited

As at

30 June

2016


Audited

As at 31 December 2016


£000


£000


£000

Fixed Assets






Intangible assets

1,592


1,452


1,522

Equipment, fixtures & fittings

698


458


750


2,290


1,910


2,272

Current Assets






Inventories

8


14


7

Trade and other receivables

686


495


636

Cash and cash equivalents

861


661


878

Total current assets

1,555


1,170


1,521







Total assets

3,845


3,080


3,793







Equity and liabilities






Equity






Share capital

453


447


453

Share premium

112


28


112

Other reserves

420


422


422

Reverse acquisition reserve

(5,244)


(5,244)


(5,244)

Retained earnings

6,901


6,533


6,759

Total Equity

2,642


2,186


2,502

Creditors






Amounts falling due within one year

831


638


769






Amounts falling due after more than one year

372


256


522

Total liabilities

1,203


894


1,291







Total equity and liabilities

3,845


3,080


3,793


     


     


     

 

 

Unaudited Consolidated Statement of Changes In Equity at 30 June 2017

 


 

 

Share capital

 

Capital

Redemption

Reserve

 

 

Share premium

 

 

Other reserves

Reverse acquisi-tion reserve

 

 

Retained earnings

 

 

 

Total


£000

£000

£000

£000

£000

£000

£000

Balance at 31 December 2015

7,335

49

1,090

421

(5,244)

(1,618)

2,033









Profit for the period

-

-

-

-

-

122

122

Capital reconstruction (*)

(6,890)

(49)

(1,090)

-

-

8,029

-

Share options exercised

2

-

28

-

-

-

30

Translation movement

-

-

-

1

-

-

1

Balance at

30 June 2016

 

447

 

-

 

28

 

422

 

(5,244)

 

6,533

 

2,186

















Balance at 31 December 2016

453

-

112

422

(5,244)

6,759

2,502

Profit for the period

-

-

-

-

-

142

142

Translation movement

-

-

-

(2)

-

-

1

Balance at

30 June 2017

 

453

 

-

 

112

 

420

 

(5,244)

 

6,901

 

2,642

















(*)  At the Company's General Meeting on 26 January 2016 shareholders approved plans to undertake a capital reconstruction, the purpose of which was to create positive retained earnings in the Balance Sheet to allow the Company to, if appropriate, pay dividends in the future. Shareholders also approved future share buy-backs. Following a court hearing on 24 February 2016 the court confirmed the reduction of capital of the Company. The nominal value of each Ordinary Share in the Company reduced from one penny to 0.1 pence per share and the Company's Deferred Shares of 19 pence each, Share Premium Account and Capital Redemption Reserve were cancelled. Trading in the shares with a nominal value of 0.1 pence commenced on 25 February 2016.

 

Unaudited Consolidated Statement of Cashflows for the 6 months to 30 June 2017

 


Unaudited

6 Months

ended

30 June

2017


Unaudited

6 Months

ended

30 June

2016


Audited

12 Months

ended

31 December

2016


£000


£000


£000

Cash flows from operating activities






Profit before tax

142


122


352

Adjustments for:






Amortisation of Intangible Assets

56


48


105

Depreciation of equipment, fixtures and fittings

133


94


198

Profit on Sale of Assets

-


-


-

Net Interest

27


17


37

Operating cash flows before movement in working capital and provisions

358


281


692

(Increase)/decrease in inventories

(1)


1


8

(Increase)/decrease in trade and other receivables

(50)


134


(2)

Increase/(decrease) in trade and other payables

58


(204)


(203)







Cash generated from operations

365


212


495

Taxes paid

-


-


(4)

Net cash generated in operating activities

365


212


491







Cash flows used in investing activities






Purchase of fixed assets

(207)


(150)


(675)

Sale of fixed assets

-


-


-

Net cash used in investing activities

(207)


(150)


(675)







Cash flows from financing activities






Net proceeds from issues of shares

-


30


120

Interest paid

(27)


(17)


(37)

Net (decrease)/increase in borrowings

(150)


48


422







Net cash (used in)/from financing activities

 

(177)


 

61


505

Net (decrease)/increase in cash and cash equivalents

(19)


123


321







Net cash and cash equivalents at beginning of period

859


538


538

Net cash and cash equivalents at end of period

840


661


859

 

 


Unaudited

6 Months

ended

30 June

2017


Unaudited

6 Months

ended

30 June

2016


Audited

12 Months

ended

31 December

2016


£000


£000


£000

Analysis of net funds:






Cash and cash equivalents

861


667


878

Bank overdraft

(21)


(6)


(19)


840


661


859







Other borrowings due within one year

(306)


(198)


(306)

Borrowings due after one year

(372)


(256)


(522)







Net funds

162


207


31







 

 

 

 

Crimson Tide Plc

 

Notes to the Unaudited Interim Results for the 6 months ended 30 June 2017

 

1.    Basis of preparation of interim report

 

The information for the period ended 30 June 2017 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 2016.  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

2017

 

 

Unaudited

 6 Months

ended

30 June

2016

 

 

Audited

 12 Months

ended 31

December

2016

 

Basic and diluted earnings per share




Reported profit (£000)

142

122

348

Reported profit per share (pence)

0.03

0.03

0.08

 


 

Unaudited

 6 Months

ended

30 June

2017

 

 

Unaudited

 6 Months

ended

30 June

2016

 

 

Audited

 12 Months

ended 31

December

2016

 


No. 000

No. 000

No. 000

Weighted average number of ordinary shares:




Shares in issue at start of period

453,486

445,486

445,486

Effect of shares issued during the period

-

197

1,945

Weighted average number of ordinary shares

 

453,486

 

445,683

 

447,431





 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Interim Results - RNS