Crimson Tide Regulatory News (TIDE)

29 Mar 2007 14:56

Crimson Tide PLC29 March 2007 FOR IMMEDIATE RELEASE 29 MARCH 2007 Crimson Tide Plc ("Crimson Tide" or "the Company") (A leading service provider of mobile data solutions for business) Preliminary Announcement of Results to 31 December 2006 Highlights * Turnover increased 61% to £1.10m in the 14 months to 31st December 2006 (12 months to 31st October 2005: £0.69m) * Loss before interest, tax, depreciation and amortisation of £0.24m for the 14 months to 31 December, slightly better than expectations * Acquisition of Intelligent Data Limited, based in Ireland * Substantial growth in customer base and contracted revenues * Confident of growth prospects. Chairman's Statement The Directors are pleased to announce the preliminary results for Crimson Tide(AIM: TIDE) for the fourteen months ended 31 December 2006, a significant periodin the Company's history. On 21 August 2006, A. Cohen & Co. Plc acquired the entire issued share capitalof Crimson Tide Limited by way of a reverse takeover and raised £0.5 million,net of expenses. The Company is now well established as a supplier of mobiledata and software solutions. Financial Performance The financial results cover the 14 month period to the 31 December 2006 and havebeen prepared under International Financial Reporting Standards (IFRS) followingthe Board's strategic decision in 2006 to voluntarily adopt IFRS. All companiesadmitted to trading on AIM will be required to report under IFRS for accountingperiods commencing on or after 1 January 2007, hence the Company's earlyadoption ahead of this requirement. The Board believes this will facilitateconsistent presentation of the results in the future. The financial information has been prepared under the reverse acquisitionaccounting provisions of IFRS3 as a continuation of the legal subsidiary,Crimson Tide mPro Limited (formerly Crimson Tide Limited). Performance since the reverse takeover has been ahead of expectations withturnover growing as a result of the Company's on-going investment in marketingand human resources, utilising the proceeds from the fundraising. Asanticipated, the Company made an operating loss at the EBITDA level for thefourteen months to 31 December 2006 of £0.24m. The Board has been pleased with the progress achieved over the last year andbelieves that the Company is well positioned to continue with its expansionplans, both organically and by acquisition. Our mobile data services havecontinued to grow, with a wide range of customers in the private and publicsectors, totalling over 1,000 users to date with over 70 customers. We aim tocontinue this growth with an exciting range of offerings and have recentlyexpanded our sales and marketing team to exploit the market, which we believecontinues to grow significantly. Acquisition On 7 December 2006 we acquired the entire share capital of Intelligent DataLimited ("IDL"), a company based in Dublin, Ireland for an initial considerationof £220,000 satisfied by cash of £120,000 and the balance satisfied by the issueof 4 million ordinary shares. This company has been renamed Crimson Tide (IE)Limited and we have integrated the team and products sold in Ireland into ourenlarged group. This acquisition gives us an exciting opportunity to leverageour mobile data solutions into the Irish market as well as adding a number ofnew mobile data solutions to sell in the UK. In addition we have welcomed someskilled individuals to our team and are delighted that Laurence D'Arcy, theManaging Director of IDL has remained with the company. Barrie Whipp, Executive Chairman commented: "I am absolutely delighted that Crimson Tide was admitted to trading on AIM inAugust 2006. These results are in line with our expectations and demonstrate the growth thatwe anticipated. We aim to further expand the business through a combination oforganic growth and acquisition. Since our admission to AIM, we have continued todevelop a wide customer base and our mobile data solutions are now being used bya diverse range of organisations. The Directors have confidence in the growth prospects for Crimson Tide and inour dedicated team's ability to manage this growth. We are looking forward todriving the business forward during what we believe will be another excitingyear in a rapidly growing market." The Company's AGM is to be held on 5 June 2007 at 11.00 am at IAF SecuritiesLimited, 117 Jermyn Street, London SW1Y 6HH. Enquiries: Crimson Tide plc 01892 542444 Barrie Whipp, Executive Chairman W.H. Ireland Limited 0121 616 2101 Tim Cofman-Nicoresti Cubitt Consulting 0207 367 5100 Brian Coleman-Smith / Leanne Denman Crimson Tide Plc Unaudited consolidated income statement for the 14 months to 31 December 2006 Group 14 Months Year ended ended 31 December 31 October 2006 2005 £ £ Revenue 1,105,729 686,911Cost of sales (524,341) (257,232)Gross profit 581,388 429,679Total operating expenses (876,322) (585,247)Loss from operations (294,934) (155,568)Interest income 6,340 2,183Interest payable and similar charges (8,269) (8,408)Loss before taxation (296,863) (161,793)Tax on loss on ordinary activities - -Loss for the year attributable to equityholders of the parent (296,863) (161,793) Loss per shareBasic and diluted loss per ordinary share 0.13p 0.08p(pence) Unaudited balance sheet as at 31 December 2006 Group As at 31 December As at 2006 31 October 2005 £ £Fixed AssetsIntangible assets 731,900 296,025Equipment, fixtures & fittings 24,455 24,143Investments - - 756,355 320,168 Current AssetsInventories 28,303 11,400Trade and other receivables 413,866 178,186Cash and cash equivalents 394,087 86,276 836,256 275,862 Total assets 1,592,611 596,030 Equity and liabilitiesEquity attributable to equity holders ofthe parentShare capital 5,679,344 730,033Capital redemption reserve 49,000 -Share premium 915,467 278,766Other reserves 457,266 -Reverse acquisition reserve (5,244,181) -Retained earnings (1,162,844) (865,981) 694,052 142,818CreditorsAmounts falling due within one year 762,559 404,411 CreditorsAmounts falling due after more than one 136,000 48,801year Total liabilities 898,559 453,212 Total equity and liabilities 1,592,611 596,030 Unaudited statement of changes in equity for the 14 months ended 31 December2006 Group Share Capital Share Other Reverse Retained Total capital redemption premium reserves acquisition earnings reserve reserve £ £ £ £ £ £ £Balance as 730,033 - 278,766 - - (704,188) 304,611at 1November2004Loss for the - - - - - (161,793) (161,793)year Balance as 730,033 - 278,766 - - (865,981) 142,818at 31October 2005 Loss for the - - - - - (296,863) (296,863)periodProceeds 599,752 (62,932) 536,820from newsharesissuedduring theyearShares 40,000 43,870 83,870issued onacquisitionof IDLIFRS 3 4,309,559 49,000 655,763 457,266 (5,244,181) - 227,407reverseacquisitionconversion 5,679,344 49,000 915,467 457,266 (5,244,181) (1,162,844) 694,052 Unaudited consolidated cash flow statement for the year ended 31 December 2006 Group Group 14 Months Year ended ended 31 October 31 December 2005 2006 £ £Cash flows from operating activitiesLoss from operations (294,934) (155,568)Depreciation of equipment, fixtures 23,135 6,388and fittingsAmortisation of Intangible Assets 47,152 37,329Loss on sales of fixed assets - 294 Operating cash flows before movement (224,647) (111,557)in working capitalDecrease / (Increase) in inventories 10,140 (5,895)Decrease / (Increase) in receivables 88,657 (107,487)Increase in payables 131,422 98,510 Cash generated from operations 5,572 (126,429) Income taxes paid - - Net cash (used in)/ from operating 5,572 (126,429)activities Cash flows from investing activitiesand servicing of financeInterest received 6,340 2,183Interest paid (8,269) (5,692)Acquisition of subsidiaries (3,231,386) -Purchase of fixed assets - (11,376) Net cash used in investment (3,233,315) (14,885)activities Cash flows from financing activitiesNet (decrease)/increase in borrowings 144,953 (208)Proceeds on issues of shares 3,911,016 -Cost of share issue (520,415) - Net Cash (used in)/from financing 3,535,554 (208)activities Net (decrease)/increase in cash and 307,811 (141,522)cash equivalents Cash and cash equivalents at 1 86,276 227,798November Cash and cash equivalents at 31 394,087 86,276December Crimson Tide Plc Notes to the Consolidated Financial Statements for the 14 months ended 31December 2006 A) Significant accounting policies a. Basis of preparation The preliminary results for the period to 31 December 2006 are unaudited. Theconsolidated financial statements of Crimson Tide plc will be prepared andapproved by the Directors in accordance with applicable law and InternationalFinancial Reporting Standards, incorporating International Accounting Standards(IAS) and Interpretations (collectively IFRSs) as endorsed by the EuropeanUnion. b. First time adoption of IFRS The Group has adopted IFRS for the first time for the current financial period,having previously prepared its financial statements in accordance with UKGenerally Accepted Accounting Practice (UK GAAP). There have been no significantadjustments required as a result of the conversion. c. Basis of consolidation The Group financial statements consolidate the financial statements of theCompany and all of its subsidiaries. On an acquisition, fair values are attributed to the Group's share of netassets. Where the cost of acquisition exceeds the values attributable to suchnet assets, the difference is treated as purchased goodwill, which iscapitalised and subjected to annual impairment reviews. The results of acquiredcompanies are brought in from the date of their acquisition. On 21 August 2006, A. Cohen & Co. Plc (now renamed Crimson Tide Plc) became thelegal parent of Crimson Tide Limited (now renamed Crimson Tide mPro Limited) ina share-for-share exchange. In accordance with IFRS 3 'Business combinations',this transaction has been accounted for as a reverse acquisition, such that insubstance, Crimson Tide Limited has acquired A. Cohen & Co. Plc. Accordingly,the comparative information for Crimson Tide Limited and its subsidiarycompanies has been presented for the year ended 31 October 2005 and thesefinancial statements present a continuation of the business of Crimson TideLimited as the legal subsidiary. B) Acquisitions Crimson Tide mPro Limited was acquired by Crimson Tide Plc on 21 August 2006 byway of a reverse takeover. The consideration included the issue of 200,759,180ordinary shares to the vendors at a price of 1.5 pence per share, with a nominalvalue of 1 pence per share, the balance being attributed to the share premiumaccount. On 7 December 2006 Crimson Tide Plc acquired the entire share capital ofIntelligent Data Limited (now renamed as Crimson Tide (IE) Limited), a companybased in Dublin, Ireland for an initial consideration of £220,000 satisfied bycash of £120,000 and the issue of 4 million ordinary shares at 2.5 pence pershare. C) Taxation No tax charge has been incorporated into the consolidated accounts for theperiod ended 31 December 2006 due to the availability of tax losses. D) Loss per share Group 14 Months ended Year ended 31 December 2006 31 October 2005 Basic and Diluted Loss per shareReported loss (£) (296,863) (161,793)Reported loss per share (pence) 0.13p 0.08p 14 Months ended Year ended 31 December 2006 31 October No. 2005 No.Weighted average number of ordinaryshares: Shares issued for Crimson Tide mPro 200,759,180 200,759,180LtdEffect of Crimson Tide Plc sharespost reverse acquisition 23,105,112 -Effect of shares issued inacquisition of Crimson Tide (IE)Ltd 225,352 - Weighted average number of ordinaryshares 224,089,644 200,759,180 The financial information set out above does not constitute the Company'sstatutory accounts for the periods ended 31 December 2006 or 31 October 2005.Statutory accounts for 2005, which were prepared under UK GAAP, have beendelivered to the Registrar of Companies. The auditors have reported on the 2005accounts; their report was unqualified and did not contain a statement undersection 237(2) or (3) of the Companies Act 1985. The statutory accounts for 2006which are prepared under accounting standards adopted by the EU will befinalised on the basis of the financial information presented by the directorsin this preliminary announcement and will be delivered to the Registrar ofCompanies following the Company's annual general meeting. This information is provided by RNS The company news service from the London Stock Exchange