Crimson Tide Regulatory News (TIDE)

Highlights

· Strong growth in opportunities from planned Sales & Marketing investment

· Revenues up 8% up on 1H 2017 (£1,201k v £1,114k)

· Profit Before Tax £4k (1H 2017: £142k) after over £200k of planned investment

· IOT solution, 5Things, now ready for market, mpro5 publicly downloadable.

Barrie Whipp, Executive Chairman, commented,

"Our pipeline has grown significantly and have seen additional demand from Europe and the Middle East as well as in the UK & Ireland. The Board estimates that, considering increased investment in Sales & Marketing, like for like profit would have increased by approximately 50%. We are working on a much wider range of exciting opportunities and have developed mpro5's IOT capabilities. mpro5 is now publicly downloadable from app stores for demonstration purposes and for smaller businesses. We are extremely well placed to take advantage of the opportunities generated from our marketing activities and the Board is excited to accelerate our growth to the next level. "

Enquiries:

The first half of 2018 has been a period of continued investment in the Company, in line with the strategy set out in 2017 to accelerate future growth. We have increased our sales team and invested significantly in marketing and we are already seeing a step change in our pipeline of opportunities, both in terms of volume and scale as a result.

We currently have over 100 identified opportunities with potential clients, five times more than typical levels before these investments were made. These opportunities range from those in the SME sector to substantial enterprise clients. This has also enabled us to increase our base pricing.

Supporting this are the continued operational improvements that have been made to mpro5. One of our goals for mpro5 this year was to make it available as a publicly available download and this was achieved with our Project Apollo release. Potential clients can now simply register for a free trial, download mpro5 and start completing their flows immediately. This gives us confidence for our future offering, where mpro5 is available for Micro and Nano organisations globally on a shorter-term subscription basis.

This will be further supported in the coming months with the release of a new website which will provide an easier interface for direct users and will allow them to schedule workflows for themselves rather than doing so indirectly through our support team.

We have also made further progress with 5Things, our Internet of Things ("IoT") function which is now complete and ready for general sale. We believe we have a unique proposition whereby we can supply our own tested sensors and gateways, are network agnostic and can integrate existing client services. There has clearly been a lot of noise around IoT and its potential applications for some time but its use in sensors and resulting alerts is gaining widespread acceptance and traction. mpro5 can schedule complete workflows based upon sensor data and rules and, as such, we will be able to sell to sensor providers, not just end users of mpro5.

We continue to be excited about our new geographic areas of operation, particularly The Netherlands and Middle East as well as increased focus in Ireland. Our investment in these geographies has been sensible and measured. They have naturally taken their time to become established, but they now represent an increasing number of the opportunities that we are seeing. Further evidence of this was the announcement, post the period end, of two new contracts secured in the Middle East and a contract with a major US pharma company secured in Ireland. We have recently recruited Sam Roberts as our new Director of Enterprise Sales and two other sales-focused employees in Ireland and Dubai

We look forward to updating shareholders with further announcements as we secure more business from these geographies.

We remain on track to deliver the strategy set out to our shareholders at the start of 2017. With the increased functionality of mpro5 and 5Things and our increased sales capability, I believe that we are in a strong position to convert an increasing amount of the growing opportunities pipeline that our investment in marketing has afforded us. With high margins and sensible costs, we are optimistic in the current climate.

I believe that had we not made such investments then our profits would have increased by around 50% on a like for like basis. As it is, with this investment in place we are well placed to deliver accelerated, sustainable growth, underpinned by our healthy cash balance which will drive returns for shareholders in the years to come.

Unaudited Consolidated Income Statement for the 6 months to 30 June 2018

Unaudited Consolidated Statement of Comprehensive Income

for the 6 months to 30 June 2018

Unaudited Consolidated Statement of Financial Position at 30 June 2018

Unaudited Consolidated Statement of Changes In Equity at 30 June 2018

Unaudited Consolidated Statement of Cashflows for the 6 months to 30 June 2018

Notes to the Unaudited Interim Results for the 6 months ended 30 June 2018

1. Basis of preparation of interim report

The information for the period ended 30 June 2018 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 2017. 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. Exceptional item

The exceptional item of £44,000 in the year to 31 December 2017 represents one-off legal fees and accounting due diligence costs incurred in preparation of an acquisition that was subsequently aborted by the Company.

3. 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: