Crimson Tide Regulatory News (TIDE)

27 Sep 2007 08:00

Crimson Tide PLC27 September 2007 Crimson Tide plc ("Crimson Tide" or "the Company") (A leading service provider of mobile data solutions for business) Announcement of Interim Results to 30 June 2007 Highlights * Turnover up over 50% to £715,000 in the 6 months to 30 June 2007 (6 months to 30 June 2006: £472,000) * Further growth in contracted revenues * Microsoft Gold Partner status achieved Barrie Whipp, Executive Chairman, commented: "We have made great progress in the year to date and our customer base andrevenues continue to grow. Our pipeline of new business is very exciting and Iam confident of our future prospects". Chairman's Statement I am pleased to report on your Company's progress in the first half of the yearto 30 June 2007. This is the first interim report since the Company's reversetakeover by A. Cohen & Co. plc in August 2006. We have made very good progress in a number of areas. Turnover has increased to£715,000, an increase of more than 50% over the comparative period last year.More importantly, our contracted long-term revenue base is increasing all thetime and it remains our priority to secure recurring subscription revenues overthe more immediate one-off sales generated by our historic software business. Atthe EBITDA level the loss for the half year was £222,000, very similar to ourexpectations. The second half of the year has started with good growth from newbusiness in mobile data solutions and a strong pipeline of opportunities inplace. Many of our subscription contracts are confidential in nature. However, I cansay that our solutions are being used in the shops and offices of a wide rangeof household names in retail, banking and financial services, as well as infield service environments. An increasing number of organisations are achievinga real return on investment from being able to fulfil their tasks using ourrange of smartphone solutions. The period saw developments in the range of services we offer and many of thedeals being concluded are now standardised for vertical markets. In addition, wehave expanded our sales team who are working hard to conclude a wide range ofopportunities. Our relationship with Microsoft has strengthened considerably. The companyrecently achieved Gold Partner status and I was a primary speaker at theMicrosoft Worldwide Partner Conference in Denver. We are planning ourparticipation at further events, which will raise our profile in the Microsoftcommunity. Our subsidiary in Ireland has performed better than expected and we areimplementing a number of exciting solutions in this market. Our acquisitionmodel has proved robust and we continue to seek further growth by acquiringcompanies of a similar nature. The Directors are focused on driving the business forward to achieve an earlybreak-even position, ensuring that our contracted book of long-term receivablesenhances shareholder value. We are confident in the Company's future andcontinue to work hard to maximise our opportunities in an exciting market. Barrie WhippExecutive Chairman17 September 2007 Operational Review During the first six months of 2007 the Group's priorities have been primarilyfocused on three areas: • Targeted sales and marketing spend aimed at identified vertical markets where we have had successes to date • Increasing front line sales resources and expertise to accelerate growth in mobile data solutions • Integration of acquisition in Ireland Some of the funds raised on the reverse takeover in August 2006 and in thefurther placing completed in June 2007 have been utilised on marketing theportfolio of mobile data solutions we have, with particular focus on verticalmarkets with most potential. To date, we have specifically targeted businessesinvolved with facilities management, cleaning companies and field based serviceengineers. This strategy has been demonstrated to be very successful andresulted in new and growing subscription business. The chosen solutions includeelectronic forms providing real-time information and replacing paper basedsystems, some with signature capture and some with more complex functionality.All are very affordable with the subscription model we have adopted and allimmediately increase our customers' productivity, with real, identifiablebenefits to their organisation. New sales resources have followed up the emerging opportunities identified inthe various marketing campaigns. After an initial learning period, we are nowbenefiting from this investment, securing new subscription business at anaccelerating rate. Many businesses now recognise the considerable benefits ofbeing able to work effectively when away from the office. As a result, thesales cycle is becoming shorter and there are numerous encouraging signs ofgrowth within the areas we operate. In addition, the channel market is showinga great deal of interest in our services and solutions, aided by our MicrosoftGold Certification, which we will exploit over the coming months. The acquisition in Ireland late last year has given us increased geographicalcoverage. The business, now renamed Crimson Tide (IE) Limited has beensuccessfully integrated into the Group with key personnel in Ireland making asignificant contribution to this achievement. Back office activities have beencentralised in the UK leaving the Irish business profitable and cash generativein the first half of 2007. Cross selling opportunities are being progressed andI will advise further on this in the year end accounts. Crimson Tide's employees have risen to the challenges brought about by theincreasing rate of growth and new business being secured. We introduced anEnterprise Management Incentive (EMI) share option scheme and granted 11 millionshare options in February as an added incentive and in recognition of therecipients' efforts to date. The options satisfy the EMI scheme requirementsand are aligned to shareholders' aims, only being exercisable if the Group'sshare price increases by 66% from the valuation at the time of the reverseacquisition. I would like to take this opportunity to thank the whole CrimsonTide team for their continuing dedication and hard work. We are very pleased with the progress we have made so far, the results of whichwill become more apparent as the growing monthly subscription revenuesaccumulate over their contracted periods. The market in which we operate isincreasingly familiar with the benefits of mobile working and we are confidentthat the outlook for the business is very promising. Stephen GoodwinChief Executive17 September 2007 Enquiries: Crimson Tide plc 01892 542444Barrie Whipp, Executive Chairman W.H. Ireland Limited 0121 616 2101Tim Cofman-Nicoresti Crimson Tide Plc Unaudited consolidated income statement for the 6 months to 30 June 2007 Unaudited Unaudited Audited 6 Months ended 6 Months ended 14 Months ended 30 June 2007 30 June 2006 31 December 2006 £000 £000 £000 Revenue 715 472 1,105Cost of sales (307) (225) (524)Gross profit 553,191 553,191 553,191 408 247 581Total operating expenses (648) (295) (876)Loss from operations (240) (48) (295)Interest income 7 - 6Interest payable and similar charges (8) (3) (8)Loss before taxation (241) (51) (297)Tax on loss on ordinary activities - - -Loss for period attributable to equity holders of the parent (241) (51) (297)Loss per shareBasic and diluted loss per ordinary share (0.09)p (0.07)p (0.13)p Unaudited consolidated balance sheet as at 30 June 2007 Unaudited Unaudited Audited As at As at As at 31 30 June 2007 30 June 2006 December 2006 £000 £000 £000Fixed AssetsIntangible assets 850 271 732Equipment, fixtures & fittings 27 20 24 877 291 756Current AssetsInventories 23 11 28Trade and other receivables 290 166 414Cash and cash equivalents 267 24 394Total current assets 580 201 836 Total assets 1,457 492 1,592 Equity and liabilitiesEquityShare capital 5,789 730 5,679Capital redemption reserve 49 - 49Share premium 1,010 279 915Other reserves 457 - 457Reverse acquisition reserve (5,244) - (5,244)Retained earnings (1,404) (927) (1,163)Total Equity 657 82 693CreditorsAmounts falling due within one year 681 376 763 CreditorsAmounts falling due after more than one year 119 34 136Total liabilities 800 410 899 Total equity and liabilities 1,457 492 1,592 Unaudited consolidated statement of changes in equity as at 30 June 2007 Capital Reverse redemp-tion acquis-ition reserve reserve Share Share premium Other Retained capital reserves earnings Total £000 £000 £000 £000 £000 £000 £000Balance as at 31 730 - 279 - - (876) 133December 2005Loss for the period - - - - - (51) (51) Balance as at 730 - 279 - - (927) 8230 June 2006 Balance as at 31 5,679 49 915 457 (5,244) (1,163) 693December 2006Loss for the period - - - - - (241) (241)Proceeds from new 110 - 95 - - - 205shares issuedduring 6 months Balance as at 5,789 49 1,010 457 (5,244) (1,404) 65730 June 2006 Unaudited consolidated statement of cashflows for the 6 months to 30 June 2007 Unaudited Unaudited Audited 6 Months 6 Months 14 Months ended ended ended 30 June 30 June 31 December 2007 2006 2006 £000 £000 £000Cash flows from operating activitiesLoss from operations (240) (48) (295)Adjustments for:Amortisation of Intangible Assets 16 16 47Depreciation of equipment, fixtures and fittings 2 7 23Operating cash flows before movement in working capital (222) (25) (225)and provisionsDecrease in inventories 5 - 17Decrease in trade and other receivables 123 10 -(Decrease)/Increase in trade and other payables (207) 28 (33) Cash generated from operations (301) 13 (241) Income taxes paid - - - Net cash (used in)/ from operating activities (301) 13 (241) Cash flows from investing activities and servicing offinancePurchase of fixed assets (4) (9) -Acquisition of subsidiaries - - (467)Interest received 7 - 6Interest paid (8) (3) (8) Net cash used in investing activities (5) (12) (469) Cash flows from financing activitiesProceeds on issues of shares 205 - 848Net (decrease)/increase in borrowings (22) 1 147 Net cash from financing activities 183 1 995 Net (decrease)/increase in cash and cash equivalents (123) 2 285 Net cash and cash equivalents at beginning of period 371 22 86 Net cash and cash equivalents at end of period 248 24 371 December Crimson Tide plc Notes to the Unaudited Interim Results for the 6 months ended 30 June 2007 1. Basis of preparation of interim report The information for the period ended 30 June 2007 does not constitute statutoryaccounts as defined in section 240 of the Companies Act 1985. It has beenprepared in accordance with the accounting policies set out in, and isconsistent with, the audited financial statements for the fourteen months ended31 December 2006. A copy of the statutory accounts for that period has beendelivered to the Registrar of Companies. The auditor's report on those accountswas unqualified and did not contain statements under Section 237(2) or (3) ofthe Companies Act 1985. The interim financial report has been prepared using accounting policiesconsistent with International Financial Reporting Standards. The financialstatements have been prepared under the historical cost basis and thecomparative information relates to Crimson Tide mPro Limited reflecting acontinuation of the business of Crimson Tide mPro Limited following the reverseacquisition by A. Cohen & Co. plc in 2006. 2. Loss per share The calculation of the basic and diluted loss per share is based on thefollowing data: Unaudited Unaudited Audited 6 Months 6 Months 14 Months ended ended ended 31 30 June 30 June December 2007 2006 2006EarningsReported loss (£000) (241) (51) (297)Reported loss per share (pence) (0.09) (0.07) (0.13) No. 000 No. 000 No. 000Weighted average number of ordinary shares:Shares in issue at start of period 279,904 73,003 200,759Effect of shares issued during the period 1,537 - 23,331Weighted average number of ordinary shares for 281,441 73,003 224,090the purpose of basic earnings per share Due to the Group's loss for the period, the diluted loss per share is the sameas the basic loss per share. This information is provided by RNS The company news service from the London Stock Exchange