Crimson Tide Regulatory News (TIDE)

Crimson Tide plc

("Crimson Tide" or "the Company")

Interim Results for the six months ended 30 June 2012

Crimson Tide, a leading service provider of mobile data solutions for business, (AIM: TIDE.L) is pleased to announce its unaudited interim results for the six months ended 30 June 2012.

Highlights

·; Turnover and Profit Before Tax in line with expectations

·; Growth in subscriber numbers

·; mpro 5 launched on iOS and Android platforms for smartphone and tablet devices and Windows 8 ready.

·; Potentially significant trials underway

Barrie Whipp, Executive Chairman, commented;

"Subscriber numbers have continued to grow and with mpro5 we have a very exciting new product. This has substantially increased our addressable market on iPhone, iPad, Android and Windows 8 smartphones and tablets. The trials which have commenced recently are showing encouraging signs. Whilst these trials are by no means certain to convert into orders, if they do we believe they will have a significant impact on the Company"

Enquiries:

Chairman's Statement

I am pleased to report the Company's interim results for the period to 30 June 2012, which show Turnover of £640k and a Profit Before Tax of £10k, in line with our expectations. The figures are comparable with last year's interim results after adjustment for the transfer of the mobile connection book to Premier Telecom.

We suffered an initial setback at the very beginning of the period when one significant customer went into administration and another, in South Africa, failed to roll out our solution despite being contracted to do so. Whilst our subscription based model insulated us from significant bad debt, the loss of subscriber revenue was still quite painful. It has taken the Company some time to add sufficient subscribers to replace those lost and this explains why our first half figures are similar to last year.

Our recent announcement of the launch of mpro5, which now brings Apple iOS and Android devices into our portfolio, is the most significant software launch in our history. mpro 5 is written in html5 and css, the very latest web standards, and is as future proof as any platform can be in this ever changing field. Bringing early new contract wins with organisations such as Knight Frank and The Erith Group, mpro 5 has expanded our addressable market significantly. Hosted on the Microsoft Azure platform, we hope to migrate existing customers to mpro 5 as soon as we can, evidenced by new contracts extending our current agreements with Initial Building Services, part of Rentokil Initial and Hampshire County Council.

mpro 5 also increases our reach and allows us to deliver solutions on iPhone (including the new iPhone5), iPad and smartphones and tablets from manufactures such as Samsung and HTC running the Android and Windows 8 operating systems.

We are adding subscribers consistently in a wide range of markets, from electricians, to logistics companies, waste management companies and healthcare organisations. I firmly believe that we are well placed in the mobilisation of enterprises and that our subscription offering is compelling.

We have also alluded to a number of trials of mpro currently taking place in the field. Two trials specifically offer exciting scope for mpro. Whilst it would be imprudent to speculate on the success of such trials, we are confident that the markets they address (store checks, insurance claims and field surveys) offer the potential of significantly expanded user numbers in exciting markets.

We have been supported by HSBC in the period with facilities to handle our short to medium term equipment needs, ensuring that we currently have sufficient headroom to take advantage of the opportunities presenting themselves to us.

We have recently promoted Luke Jeffrey to the Plc Board as Technical Director in recognition of the excellent job he has done in the development and roll-out of our mpro software and in anticipation of him taking an increasingly important role in steering the strategic direction of the Company. Luke has been a member of the team since leaving university and he reflects our commitment to promotion from within and a young, dynamic team. All Crimson Tide's staff are committed, enthusiastic and loyal and I thank them for their support.

Barrie Whipp

Executive Chairman

27 September 2012

Operating and Financial Review

I am pleased to review our interim results for the six months to 30 June 2012 and our year to date performance.

OPERATING REVIEW

Early in 2012, the Board took the decision to accelerate the development of our mpro software. We have substantially increased the number and types of devices on which mpro is able to operate (including iPad, iPhone, Android smartphones and Android tablets, with the ability to fulfil demand on Windows 8 devices when released) while at the same time, providing regular software releases, including new feature requests, to existing customers. Using HTML5 and CSS3, the latest web standards, the team has improved the "look and feel" experienced by the users and they continue to work on adding to the suite of reports available to all customers.

In consciously focusing our development team resources on these projects, the Board recognised that more immediate sales opportunities may be rolled out more slowly, or even sacrificed, in favour of enhancing the business's mpro solutions and as a result, its longer term growth prospects.

This decision, together with the setback suffered early in the year when the two subscription agreements mentioned in the Chairman's Statement were unexpectedly terminated early, has slowed first half growth in our revenue line and profitability, but is expected to be rewarded with higher future returns. Contracted subscribers have increased by 18% in the first half of 2012 from 1,043 (excluding the two terminated agreements) to 1,236.

In the same spirit, we have invested more in our partner community, in recognition that by incurring this expenditure now to provide marketing materials, webinars on request, product training and day to day support, we are creating an effective channel to increase our future sales. We now have an "inner circle" of the top performing partners who are increasingly finding bigger opportunities for our mpro solutions.

In summary, in 2012 to date, we fully established the key elements necessary to be able to pursue our strategy of subscriber growth and increasing committed long term revenues, these being:

·; Our latest mpro software, including functionality which is able to satisfy our customers' requirements without additional development work, allowing faster implementation and with mpro 5, capable of being utilised on Apple, Android and Windows 8 devices;

·; A network of channel partners, whose sales teams promote our solutions and generate a growing opportunity pipeline of new deals; and

·; A debt facility allowing us to fund smartphone and tablet devices, which we provide with our software to our customers, who sign term subscription agreements of typically three years.

Despite the economic situation and the setbacks mentioned, we have not wavered from our original plan to continue to invest in our mpro software and cultivate knowledgeable sales channels, as we are convinced that these current investments will result in more and faster growth in future year revenues. This confidence stems from the size of our attainable market, which continues to grow as devices and technical developments improve, and the attraction of our business model, which provides our customers with mobility solutions for a fixed monthly cost.

FINANCIAL REVIEW

Turnover from continuing operations in the first six months of 2012 was slightly up on the same period in 2011 at £640,000 and earnings before interest, tax and depreciation were 17% higher at £97,000 with small improvements to both gross and operating margins. Discontinued operations mostly consist of the UK mobile connections business assigned to Premier Telecom in September 2011.

There have been no changes in 2012 to Crimson Tide's accounting policies which can be found in the notes to the published 2011 Consolidated Financial Statements. As noted therein, in 2011 we changed the way we accounted for the cost of the smartphone and pda handheld devices purchased for our subscribers. Previously the cost of this equipment was treated as a current asset prepayment and spread over the term of the subscription contracts to which the purchases related. In 2011, our expenditure on this equipment significantly increased and by the end of the year it became more appropriate to show these as tangible fixed assets, to be depreciated over their estimated useful life, i.e. typically the subscription term. First half 2011 reported results shown below have been re-stated to reflect this change which has had no impact on the reported profit before tax.

At 30 June 2012, the Group had a cash balance of £471,000, including funds from the new loan facility of £350,000 with HSBC plc, which is adjudged sufficient headroom to fund the Company's current forecast requirements to purchase devices for new subscribers.

FUTURE PROSPECTS

The Board of Crimson Tide has made a conscious decision to invest available resources now to generate higher returns for the business in future years, while still maintaining a degree of profitability. The outlook remains a positive one for the Company with a number of opportunities, including the current trials referred to in the Chairman's Statement, to achieve our vision of being a world class provider of mobility as a service and able to reward stakeholders accordingly.

Stephen Goodwin

Chief Executive

27 September 2012

Unaudited Consolidated Income Statement for the 6 months to 30 June 2012

Unaudited Consolidated Statement of Comprehensive Income

for the 6 months to 30 June 2012

Unaudited Consolidated Statement Of Financial Position at 30 June 2012

Unaudited Consolidated Statement Of Changes In Equity at 30 June 2012

Unaudited Consolidated Statement Of Cashflows for the 6 months to 30 June 2012

Notes to the Unaudited Interim Results for the 6 months ended 30 June 2012

1. Basis of preparation of interim report

The information for the period ended 30 June 2012 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 2011. 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.