LONDON (Alliance News) - Crimson Tide PLC said Wednesday revenue rose, with revenues from mobile services increasing 30% in the full-year, while pretax profit tripled as the firms' subscriber base grew.
The company said revenue rose marginally to GBP1.27 million up from GBP1.23 million. Pretax profit tripled from GBP5,000 to GBP20,000 during the year.
Crimson said that while revenues remained relatively in line with last year, revenues from mobile data solutions, including its mpro5 software, increased by 30% to GBP1.08 million, which it said more than offset the planned reduction in revenues from non-core activities which reduced from GBP0.40 million in 2012 to GBP0.19 million in 2013.
"The key to our growth is the percentage increases in contracted subscriber revenue compared to one off consultancy or sales revenue," said the company in its preliminary results
Contracted subscribers grew by more than 20% over the year, said Crimson, boosted by a number of contract wins. In April 2013, Associated Newspapers signed new subscriber agreements to add a further 155 subscribers on a five year term to their existing 144, added significantly to its contracted revenue book. With these agreements and others, the firm said future contracted revenues more than doubled to over GBP2 million.
"A significant year for Crimson Tide has seen positive increases in most key indicators. The foundation of the business in terms of contracted subscribers is very strong and contracted revenues represent a significant percentage of operating costs. We have leverage for future growth which will substantially flow through to the bottom line. mpro5 is now being seen as a platform for mobility for enterprise customers and we are optimistic that some of these opportunities will result in significant benefits," said Barrie Whipp, Executive Chairman of the firm.
Looking ahead, the company said a strong start to 2014 has given it reasons to be positive for the future, noting that it plans to increase its marketing spend from its current low level to further boost the pipeline of opportunities currently being working on.
"As more companies adopt new mobile technology, Crimson Tide will continue to grow its subscriber book and secure the benefits for its stakeholders of being highly operationally geared. The Board remain very encouraged by the prospects for the business," said Stephen Goodwin, Finance Director.
Shares in Crimson Tide were trading 3.54% higher Wednesday morning at 1.45 pence per share.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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Crimson Tide (TIDE)