Crimson Tide Regulatory News (TIDE)

30 Jun 2008 07:00



Crimson Tide Plc

("Crimson Tide" or "the Company")

(A leading service provider of mobile data solutions for business)

Preliminary Announcement of Results to 31 December 2007

Highlights

Turnover increased to £1.67m in the 12 months to 31 December 2007 from £1.10m in the 14 months to 31 December 2006. 

Turnover for comparative 12-month period up by 78%.

Loss before interest, tax, depreciation and amortisation of £0.35m for the 12 months to 31 December 2007, in line with our expectations. 

Significant improvement in second half of year with loss reducing consistently.

Continued growth in customer base and contracted revenues; larger customers achieved.

Chairman's Statement

I am pleased to report the results for Crimson Tide plc for the twelve months ended 31 December 2007, the company's first full year as an AIM listed company. I am particularly pleased to confirm that the growth in the business during the year was significant. Turnover grew to £1.67m which was 78% higher than the equivalent twelve month period in 2006 and 51% higher than the last reported fourteen month period ending 31 December 2006. The loss before tax for the year was £0.41m, in line with our expectations. Notably, the loss for the second half of the year at the EBITDA level was £0.13m, an improvement over the loss in the first half of 43%.

Our mobile data solutions have attracted a wide range of new customers and the size of those customers has been larger than we anticipated. Our solutions are being used in many high street retail outlets and financial institutions. Contract wins with organisations such as Marks & Spencer and Knight Frank have validated our business model and demonstrated our ability to sell to larger organisations. Marks & Spencer monitors contractors cleaning their branches using our real-time handheld solution and Knight Frank uses our system to monitor facilities management in trophy buildings such as The Adelphi in London. These and other contracts have increased in numbers of users and further application development through the year. Our subscription based mobile data solutions have been proved to deliver fast, demonstrable return on investment.

Our operations in the Republic of Ireland had a good year and are now seamlessly integrated into our operational structure. A number of exciting applications have been developed by our staff in Ireland and we have introduced solutions to a number of vertical markets. We have some exciting opportunities in the retail and healthcare fields due for roll-out in 2008.

Building on the successes of 2007, our pipeline of new business opportunities is very strong, both from increasing numbers of subscribers from our existing customers and from new prospects. These opportunities include a range of applications where we have customised solutions for existing vertical markets as well as solutions for areas new to us. We have made a good start to the year and are pressing forward with delivering a wide range of solutions, both in the UK & Ireland.

In summary, during the reported period, we have delivered all that was expected at the time we floated on AIM. We have controlled overheads, grown our revenues and, more importantly, increased our contracted, long-term subscriber base. The Directors are continuing to work hard to drive the business forward towards profitability and believe firmly that the market for our solutions is growing.

The Company's AGM is to be held on 23 July 2008 at 11.00 am at IAF Securities Limited, 117 Jermyn Street, London SW1Y 6HH.

Finally, I would like to thank Crimson Tide's team for their continued commitment and dedication.

Barrie Whipp, 

Executive Chairman

30 June 2008

Enquiries: 

  Crimson Tide Plc

Unaudited consolidated income statement for the 12 months to 31 December 2007

  Unaudited balance sheet as at 31 December 2007 

  Unaudited statement of changes in equity for the 12 months ended 31 December 2007

Note: "IDL" means Intelligent Data Limited, acquired by Crimson Tide plc on 7 December 2006   Unaudited consolidated cash flow statement for the year ended 31 December 2007

  Crimson Tide Plc

Notes to the Consolidated Financial Statements for the 12 months ended 31 December 2007 

A. Significant accounting policies 

Basis of preparation

The preliminary results for the period to 31 December 2007 are unaudited. The consolidated financial statements of Crimson Tide plc will be prepared and approved by the Directors in accordance with applicable law and International Financial Reporting Standards, incorporating International Accounting Standards (IAS) and Interpretations (collectively IFRSs) as endorsed by the European Union.

Basis of consolidation

The Group financial statements consolidate the financial statements of the Company and all of its subsidiaries.

On an acquisition, fair values are attributed to the Group's share of net assets. Where the cost of acquisition exceeds the values attributable to such net assets, the difference is treated as purchased goodwill, which is capitalised and subjected to annual impairment reviews. The results of acquired companies are brought in from the date of their acquisition.

B. Acquisitions

On 7 December 2006 Crimson Tide plc acquired the entire share capital of Intelligent Data Limited (now renamed Crimson Tide (IE) Limited), a company based in Dublin, Ireland for an initial consideration of £220,000 satisfied by cash of £120,000 and the issue of 4 million ordinary shares at 2.5 pence per share.

Following the acquisition, additional consideration of €106,000 became due to the sellers in 2007 representing the net working capital balance acquired, of which €80,000 was paid during the year; the balance will be settled in 2008. Further consideration was paid to the sellers in April 2008 in the form of 3.2 million Crimson Tide plc shares valued at £60,000 in recognition of achieving the target turnover of €1m in 2007, set out in the acquisition agreement.

C. Taxation

No tax charge has been incorporated into the consolidated accounts for the period ended 31 December 2007 due to the availability of tax losses.

D. Loss per share

The loss per share has been calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of shares in issue calculated as follows:

Due to the Group's loss for the periods, the diluted loss per share is the same as the basic loss per share.  

The financial information set out above does not constitute the Company's statutory accounts for the periods ended 31 December 2007 or 31 December 2006. Statutory accounts for 2006, which were prepared under IFRS, have been delivered to the Registrar of Companies. The auditors have reported on the 2006 accounts; their report was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for 2007 which are prepared under accounting standards adopted by the EU will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies following the Company's annual general meeting.