Crimson Tide Regulatory News (TIDE)

23 September 2014

Crimson Tide plc

("Crimson Tide" or "the Company")

Interim Results for the six months ended 30 June 2014

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 2014.

Highlights

· EBITDA increased by over 34% year on year

· Turnover and Profit Before Tax in line with expectations

· Very strong cash generation

· Landmark contracts won

- Subscriber agreement signed with leading Irish company via Vodafone partnership

- New deal with service provider for one of UK's best known transportation providers

· Subscribers reach record level

· Board is confident of further progress

Since the period end the Company has won a transformational deal with an international food and beverage company which takes mpro global.

Barrie Whipp, Executive Chairman, commented,

"We are encouraged with the Company's performance in the first half and very confident about future prospects. Recent contract wins and record subscriber numbers mean that we have reached a landmark in the Company's history."

Enquiries:

Chairman's Statement

I am pleased to report results for the six months to 30 June 2014, which show an encouraging trading performance by the Company and several key milestones. Since the period end we have concluded a transformational contract.

EBITDA increased significantly - over 34% year on year. Profit after tax was higher in the first half of 2014 than in the whole of the 2013 financial year. Our cash generation has been very strong, demonstrating the robustness of our model and the Company is cash positive.

We continued to add subscribers in the period, reaching a record level, and have agreed further contract extensions. We signed a significant subscriber agreement with one of Ireland's most eminent companies, as well as a new deal with a service provider for one of the UK's most well-known transportation providers; we have also extended our contract with a leading facilities management company.

During the period, we signed an exclusive agreement with Vodafone to distribute mpro5 in Ireland which gives us a strong partner and has validated our system at the mobile network level. We are working on further distribution agreements to allow us greater access to the growing market for mobile and cloud solutions.

We have been successfully piloting mpro5 in one of the UK and Ireland's major supermarkets, with very promising results for store management and insurable risks. We believe our solution is compelling and attractive to a large number of leading retailers.

Finally, we have recently announced a transformational contract with one of the world's largest food and beverage companies. The contract, which came about from a recommendation by Microsoft, will take Crimson Tide global, with mpro5 becoming available worldwide in most major languages. There are tremendous opportunities for mpro5, which we believe is a leading enterprise class platform for businesses worldwide.

Looking ahead, the Board is confident of further progress.

Barrie Whipp

Executive Chairman

23 September 2014

Operating and Financial Review

I am pleased to report results for the six months to 30 June 2014 and review the performance of the business during this period.

OPERATING REVIEW

Our mpro5 product has continued to be well received by both new customers and existing customers who have upgraded. Our strategy of continuing to invest in this mobility solution is proving increasingly successful. In ensuring the latest version of mpro5 is available across a range of operating systems, including iOS and Android, hosted in the cloud on Microsoft's Azure platform, customers have benefitted from productivity gains and increasing returns on their investment. Additionally, our business has benefitted by being able to function very effectively with lower operating costs.

During the period, a number of significant new subscription contracts have been announced as well as a new strategic partnership with one of the world's leading mobile network operators. More recently, we announced a major new deal with one of the world's largest food companies, which will significantly increase our global profile and generate additional business in the future.

Comparing our revenues now to the same period in 2013, it is clear that we have successfully moved away from lower margin, non-core activities, albeit with the resulting small reduction in revenues. Gross margin has risen to 83 per cent, up 2 per cent from the first half of 2013. More significantly, our operating margin after overheads but before interest, tax, depreciation and amortisation has increased from 19% to 28% reflecting the operational gearing gains we previously advised could be expected.

The Group's growing profitability and present operations are testament to the value of the decisions taken by the Board in 2013. It is encouraging to see that Crimson Tide's business has made more positive progress over the first half of 2014 and is well placed for this trend to continue.

FINANCIAL REVIEW

Turnover for the six months to 30 June 2014 is £614k (2013: £660k) comprised mostly of longer-term subscription income (75 per cent) arising from contracts that typically cover a three year period. The resulting gross margin of 83 per cent is calculated after deducting direct costs. At the operating margin level, before depreciation and amortisation, the first half 2014 margin of 28 per cent is calculated after deducting administration costs of £336k, mostly consisting of salaries and other staff costs (63 per cent).

After depreciation, amortisation and interest costs, the Group achieved a profit before tax of £25k (2013: £10k).

Net cash generated from operating activities was £261k, partly used to finance purchases of new smartphone, tablets and other mobile devices supplied to new contracting subscribers, as well as funding the continuing development of mpro5 to ensure that our product remains market-leading. After scheduled debt repayments totalling £66k, net cash balances increased from £132k at the end of 2013 to £247k at 30 June 2014.

There have been no changes to Crimson Tide's accounting policies which can be found in the notes to the published 2013 Consolidated Financial Statements available on our website, www.crimsontide.co.uk.

FUTURE PROSPECTS

Crimson Tide's mpro5 solution and the services provided by the Group continue to be of interest to a broad spectrum of businesses, including those of a significant size. The Company remains well placed to meet the demands of organisations looking to mobilise their business activities.

The availability of mpro5 globally is leading us to explore opportunities with potential partners in other geographies which the Board feels will add scale to our offering.

The Board remain very positive for the prospects for the business.

Stephen Goodwin

Finance Director

23 September 2014

Unaudited Consolidated Income Statement for the 6 months to 30 June 2014

Unaudited Consolidated Statement of Comprehensive Income

for the 6 months to 30 June 2014

Unaudited Consolidated Statement of Financial Position at 30 June 2014

Unaudited Consolidated Statement of Changes In Equity at 30 June 2014

Unaudited Consolidated Statement of Cashflows for the 6 months to 30 June 2014

Notes to the Unaudited Interim Results for the 6 months ended 30 June 2014

1. Basis of preparation of interim report

The information for the period ended 30 June 2014 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 2013. 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:

3. Availability of this announcement

Copies of the interim report will be despatched shortly to shareholders who have requested a printed copy. Copies of this announcement are available from the Company's office, Heathervale House, Vale Avenue, Royal Tunbridge Wells, Kent TN1 1DJ, and from the Company's website, www.crimsontide.co.uk.