Interim Results

RNS Number : 6173A
Crimson Tide PLC
30 September 2015
 

30 September 2015

 

Crimson Tide plc

 

("Crimson Tide" or "the Company")

 

Interim Results for the six months ended 30 June 2015

 

Crimson Tide, a leading service provider of mobile data solutions for business (AIM: TIDE.L) announces its unaudited interim results for the six months ended 30 June 2015.

 

Highlights

 

·     Profit Before Tax more than doubled to £60k (1H 2014: £25k) in line with expectations

 

·     More significant contract wins

 

·     Cash from operations of £361k, 38% up on same period last year (1H 2014: £261k)

 

 

 

Barrie Whipp, Executive Chairman, commented,

 

" A very pleasing period for the Company and we are well placed to take advantage of recent significant contract wins"

 

 

Enquiries:

 

Crimson Tide plc                          

Barrie Whipp

 

01892 542444

WH Ireland Limited                     

James Joyce / James Bavister 

 

020 7220 1666

 

 



 

Chairman's Statement

 

I am very pleased to report on the Company's progress for the first half of 2015. We exceeded all of our key indicators and Profit after Tax increased by 140% to £60k on slightly increased turnover. Once again we achieved record subscriber numbers.

 

Significant contract wins included a pilot for a leading supermarket as well as the contract for mpro5 to distribute The Evening Standard. We completed the roll out of around 200 users for Brennan's in Ireland, sold through our partner Vodafone. We also continued with our roll out worldwide with a global food and beverage company. Initial roll out took place in Australia, with Germany and Brazil following shortly afterwards.

 

We have completed significant technical work on mpro5 with the core product achieving ever higher levels of functionality. Recently we have upgraded all of our web systems to Model View Controller functionality which has been universally praised by our customers. 

 

In healthcare the mpro5 system has been developed further in the fields of haemophilia, autism and Ebola and we have a level of optimism in respect of opportunities in the wider healthcare field. We have also developed a version of mpro5 that deals with food health and safety, another area with tremendous upside. We have been working with a major University Health Science Center in the United States to develop the Ebola solution and hope to roll out pilots in West Africa shortly, whilst the autism version of mpro5 is now being used in the NHS for the first time. 

 

Our landmark contract with a UK retailer announced recently, will see mpro5 rolled out across a wide spectrum of UK retail space and we are optimistic that this iteration of mpro5 will quickly produce publicity to fight fraudulent insurance claims and to make retail outlets safer for customers.

 

During the period we wished Rowley Ager farewell as a Non- Executive Director and welcomed Robert Todd, a shareholder and friend of the Company for many years, in his place. Sam Roberts joined the board as Sales & Marketing Director and has been working hard on building a channel sales strategy including distributors, VARS and operators. We are starting to see the benefits of this strategy.

 

The Board and I feel that we are now seeing the benefits of the substantial gearing that we have generated. We are confident that the new channel strategy will result in greater opportunities and look forward to the future with ever increasing optimism. 

 

Barrie Whipp

Executive Chairman

30 September 2015

 



 

Operating and Financial Review

 

I am once again pleased to report significant progress and comment on our results for the six months to 30 June 2015.

 

Turnover for the six months to 30 June 2015 was £673k (2014: £614k) comprised mostly of longer-term subscription income (75 per cent) arising from contracts that typically cover an initial three year term.   During the period we announced that we had begun to roll out mpro5 to the global food and beverage company's operations in Australia and new geographic locations are following.  We also announced that revenues from a number of other long term contract wins for our mpro5 product are expected to build during 2015 as the solution is increasingly used in logistics, field audit, facilities maintenance and healthcare activities.

 

Hosting our services with Microsoft's Azure in the cloud has continued to benefit gross margins which are now over 90%. Operating profit before depreciation, amortisation and interest totalled £198k (2014: £172k) with margins remaining high at just under 30%.  Our high operational gearing means that operating margins are likely to continue to improve as revenues increase with the addition of more subscribers without the same proportional increase in overheads.

 

In line with our strategy to continue to invest for future growth, certain areas of overhead spending have been targeted to increase over the course of the year, in particular, a higher level of investment in marketing, including the creation of a new channel sales initiative. 

 

After depreciation, amortisation and interest costs, the Group achieved a profit before tax of £60k in the first half 2015 (2014: £25k).

 

Net cash generated from operating activities continues to increase year on year.  During the period, cash generated from our operating activities totalled £361k (2014: £261k).  We continue to invest the majority of this for future growth in assets for new subscribers.   Net cash balances increased from £239k at the end of 2014 to £499k at 30 June 2015 partly assisted by asset finance from Lombard for new hand-held devices purchased for new contracts.

 

There have been no changes to Crimson Tide's accounting policies which can be found in the notes to the published 2014 Consolidated Financial Statements available on our website, www.crimsontide.co.uk.

 

The number of subscribers using Crimson Tide's mpro5 solution continues to build year on year.  Furthermore, the current opportunity pipeline is extremely encouraging with companies of increasing size seriously looking to implement mpro5 in their businesses.  Our business model, targeting long term contracted revenues gives the Board more reasons to remain very positive for the prospects for the Company.

 

Stephen Goodwin

Finance Director

30 September 2015



Crimson Tide plc

Unaudited Consolidated Income Statement for the 6 months to 30 June 2015

 


Unaudited

6 Months

ended

30 June

2015


Unaudited

6 Months

ended

30 June

2014


Audited

12 Months

ended 31

December

2014



£000


£000


£000

 







 

Revenue

673


614


1,210

 

Cost of Sales

(62)


(106)


(166)

 







 

Gross Profit

611


508


1,044

 

Overhead expenses

(413)


(336)


(715)

 







 

Earnings before interest, tax, depreciation & amortisation

 

198


 

172


 

329

 

Depreciation & Amortisation

(132)


(141)


(237)

 







 

Profit from operations

66


31


92

 

Interest income

-


-


-

 

Interest payable and similar charges

(6)


(6)


(8)

 







 

Profit before taxation

60


25


84

 

Taxation

-


-


-

 







 

Profit for the year attributable to equity holders of the parent

 

60


 

25


 

84

 







 

Earnings per share

Unaudited

6 Months

ended

30 June

2015


Unaudited

6 Months

ended

30 June

2014


Audited

12 Months

ended 31

December

2014


Basic and diluted earnings per Ordinary Share

0.01p


0.01p


0.02p

 

(see Note 2)






 

 



 

Unaudited Consolidated Statement of Comprehensive Income

for the 6 months to 30 June 2015

 


Unaudited

6 Months

ended

30 June

2015


Unaudited

6 Months

ended

30 June

2014


Audited

12 Months

ended 31

December

2014



£000


£000


£000

 

Profit for the period

60


25


84

 

 

Other comprehensive income/(loss) for period:






 

Exchange differences on translating foreign operations

(5)


(7)


(9)

 







 







 

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

 

55


 

18


 

75

 







 

                  



Unaudited Consolidated Statement of Financial Position at 30 June 2015

 


Unaudited

As at

30 June 2015


Unaudited

As at

30 June 2014


Audited

As at 31 December 2014


£000


£000


£000

Fixed Assets






Intangible assets

1,308


1,213


1,260

Equipment, fixtures & fittings

390


367


339


1,698


1,580


1,599

Current Assets






Inventories

11


31


30

Trade and other receivables

346


415


563

Cash and cash equivalents

499


247


239

Total current assets

856


693


832





Total assets

2,554


2,273


2,431







Equity and liabilities






Equity






Share capital

7,335


7,335


7,335

Capital redemption reserve

49


49


49

Share premium

1,090


1,090


1,090

Other reserves

421


428


426

Reverse acquisition reserve

(5,244)


(5,244)


(5,244)

Retained earnings

(1,726)


(1,845)


(1,786)

Total Equity

1,925


1,813


1,870

Creditors






Amounts falling due within one year

513


460


561

 

Creditors






Amounts falling due after more than one year

116


-


-

Total liabilities

629


460


561







Total equity and liabilities

2,554


2,273


2,431


     


     


     

 



 

Unaudited Consolidated Statement of Changes In Equity at 30 June 2015

 


 

 

Share capital

Capital redemp-tion reserve

 

 

Share premium

 

 

Other reserves

Reverse acquisi-tion reserve

 

 

Retained earnings

 

 

 

Total


£000

£000

£000

£000

£000

£000

£000

Balance at 31 December 2013

7,335

49

1,090

435

(5,244)

(1,870)

1,795









Profit for the period

-

-

-

-

-

25

25

Translation movement

-

-

-

(7)

-

-

(7)

Balance at

30 June 2014

 

7,335

 

49

 

1,090

 

428

 

(5,244)

 

(1,845)

 

1,813

























Balance at 31 December 2014

7,335

49

1,090

426

(5,244)

(1,786)

1,870

Profit for the period

-

-

-

-

-

60

60

Translation movement

-

-

-

(5)

-

-

(5)

Balance at

30 June 2015

 

7,335

 

49

 

1,090

 

421

 

(5,244)

 

(1,726)

 

1,925



















Unaudited Consolidated Statement of Cashflows for the 6 months to 30 June 2015

 


Unaudited

6 Months

ended

30 June

2015


Unaudited

6 Months

ended

30 June

2014


Audited

12 Months

ended

31 December

2014


£000


£000


£000

Cash flows from operating activities






Profit before tax

60


25


84

Adjustments for:






Amortisation of Intangible Assets

52


66


83

Depreciation of equipment, fixtures and fittings

80


75


154

Profit on Sale of Assets

-


-


(6)

Net Interest

6


6


8

Operating cash flows before movement in working capital and provisions

198


172


323

Decrease in inventories

19


17


18

Decrease in trade and other receivables

217


81


(67)

(Decrease)/increase in trade and other payables

(73)


(9)


159







Cash generated from operations

361


261


433

Taxes paid

-


-


-

Net cash generated in operating activities

361


261


433







Cash flows used in investing activities






Purchase of fixed assets

(230)


(80)


(218)

Sale of fixed assets

-


-


19

Interest received

-


-


-

Net cash used in investing activities

(230)


(80)


(199)







Cash flows from financing activities






Interest paid

(6)


(6)


(8)

Net increase/(decrease) in borrowings

135


(60)


(119)







Net cash from/(used in) financing activities

 

129


 

(66)


(127)

Net increase in cash and cash equivalents

260


115


107







Net cash and cash equivalents at beginning of period

239


132


132

Net cash and cash equivalents at end of period

499


247


239

 



 


Unaudited

6 Months

ended

30 June

2015


Unaudited

6 Months

ended

30 June

2014


Audited

12 Months

ended

31 December

2014


£000


£000


£000

Analysis of net funds:






Cash and cash equivalents

499


247


239

Bank overdraft

-


-


-


499


247


239







Other borrowing due within one year

(19)


(117)


(58)

Borrowings due after one year

(33)


-


-

Finance leases

(142)


(2)


(1)







Net funds

305


128


180







 

 

 

 

Crimson Tide Plc

 

Notes to the Unaudited Interim Results for the 6 months ended 30 June 2015

 

1.    Basis of preparation of interim report

 

The information for the period ended 30 June 2015 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 2014.  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

2015

 

 

Unaudited

 6 Months

ended

30 June

2014

 

 

Audited

 12 Months

ended 31

December

2014

 

Basic and diluted earnings per share




Reported profit (£000)

60

25

84

Reported profit per share (pence)

0.01

0.01

0.02

 


 

Unaudited

 6 Months

ended

30 June

2015

 

 

Unaudited

 6 Months

ended

30 June

2014

 

 

Audited

 12 Months

ended 31

December

2014

 


No. 000

No. 000

No. 000

Weighted average number of ordinary shares:




Shares in issue at start of period

445,486

445,486

445,486

Effect of shares issued during the period

-

-

-

Weighted average number of ordinary shares

 

445,486

 

445,486

 

445,486





 

 

 


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