Crimson Tide Regulatory News (TIDE)

Highlights

·; Profit before tax increased by over 2,000% to £101k (H1 2018: £4k)

·; Turnover increased by 5.5% to £1,267k (H1 2018: £1,201k), influenced by fewer, lower margin hardware sales

·; Pipeline of business enlarged and includes more enterprise organisations

·; IOT pilots in transportation and retail

Barrie Whipp, Executive Chairman, commented,

"I am delighted to report an increase in profitability and turnover in a period where we substantially increased our investment in our sales team.

As a result of our decision to invest in additional senior sales professionals, with the associated cost, our pipeline has grown, and we have increased the number and value of our opportunities. As we are dealing with larger and more complex clients, our sales cycle has been extended but we are well positioned to take advantage of transactions that have been under discussion for some months. It should be noted that we are increasing our percentage of BYOD (Bring Your Own Device) business which will impact turnover but, more importantly, improve margins. Our investment in IOT has started to bear fruit and we are hopeful of further announcements in the near future."

Enquiries:

To increase profitability having added high calibre sales professionals to our team, with the associated costs, is very pleasing. Our team has increased our pipeline of business and it is only due to the longer sales cycle with larger clients that our performance was not even better. Importantly, theses sales have not been lost.

We have had to be patient as we discuss long term deals with our clients, which can be five-year investments which take time to conclude. The fact that mpro5 can achieve so much for clients sometimes means that we have to present to multiple departments and decision makers to conclude deals.

We are excited by our early moves into the transportation sector, which affords us the opportunity to show not only mpro5's capabilities to a wider audience but also to showcase our IOT (Internet of Things) investments which involve sensors in a wide range of business cases. IOT gives us the ability to track movement, weight and levels as well as sensing temperature, humidity and carbon dioxide levels. The possibilities for mpro5 with IOT are limitless.

Our sensible use of our own cash resources to finance our investment in the sales team is typical of our measured, yet ambitious approach to growing the business in an environment where decision making of our clients is understandably cautious.

Mpro5 continues to grow as a product. We are currently implementing single sign on and a new CRM section to the client websites. A new component tool, Stencil JS is being implemented by the development team. Our clients continue to demand more from mpro5 and we are currently pursuing integration opportunities, first with Xero accounting software, which will extend mpro5 to being an add on sale to enterprise or SME software.

These are early days into our sales growth strategy (approximately six months to June 30, 2019) and the addition of new SaaS contracts should now be well placed to allow us to grow further. We have had small successes in Europe, the Middle East and the United States and our measured investments in these territories mean that any new business will contribute directly to the bottom line.

There are so many opportunities for mpro5 it is difficult to expand upon all of them. We continue to do things in our own way, pragmatic yet ambitious, and the Board is confident that we are well placed to add quality, high margin revenue to our base. We have doubled our turnover since 2015 and increased our staff count from 14 to 32. This team is now set to add to our long term contracted base revenues and deliver enhanced results.

Unaudited Consolidated Income Statement for the 6 months to 30 June 2019

Unaudited Consolidated Statement of Comprehensive Income

for the 6 months to 30 June 2019

Unaudited Consolidated Statement of Financial Position at 30 June 2019

Unaudited Consolidated Statement of Changes In Equity at 30 June 2019

Unaudited Consolidated Statement of Cashflows for the 6 months to 30 June 2019

Notes to the Unaudited Interim Results for the 6 months ended 30 June 2019

1. Basis of preparation of interim report

The information for the period ended 30 June 2019 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.

The interim financial statements have been prepared in accordance with the recognition and measurement principles of IFRS 16 "Leases". Crimson Tide has adopted IFRS 16 retrospectively from 1 January 2019, but has not restated comparatives for the 2018 reporting period, as permitted under the specific transitional provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening Consolidated Statement of Financial Position on 1 January 2019.

The interim financial statements should be read in conjunction with the consolidated financial statements for the year ended 31 December 2018. 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: