Last checked at 12 Sep 2011 07:00
12 September 2011
CRIMSON TIDE plc
("CRIMSON TIDE" or "The Company")
PREMIER TELECOM AGREEMENT
Crimson Tide is pleased to announce that it has entered into an agreement to assign the future value of expected income from its non-core mobile phone connections business to Premier Telecom Limited, a Vodafone Platinum partner. A cash sum of £120,000 is payable upon completion. Premier Telecom is in the process of becoming a Crimson Tide partner, and will resell the Company's mobile data applications, whilst Crimson Tide will place future mobile phone connections achieved as part of its mobile data applications business with Premier Telecom.
The agreement reflects a change in the nature of the connections business whereby up front payments from the mobile networks are being replaced with revenue share agreements. As Crimson Tide's marketing and business development plans remain focused on growing its higher margin, core mobile business applications, the Directors believe that this agreement represents an excellent opportunity for the Company. The proceeds will be applied to the Company's core mobile business applications.
For the year ended 31 December 2010 the connections business contributed gross operating profits of approximately £200,000 before accounting for a significant percentage of the Company's administrative and support costs. Given the change in nature of the mobile phone business, , its contribution was forecast to be considerably lower in this and future years. There will be an effect on turnover for the current financial year, ending 31 December 2011, but given growth in the Company's contracted, long-term subscriber agreements, there is not expected to be any material impact upon the Company's expected profit before tax performance. The future receivables from the mobile phone connections business had no carrying value in the Company's accounts and the transfer has no effect on Crimson Tide's subscriber numbers.
Barrie Whipp, Executive Chairman commented "In the increasingly commoditised mobile communications market, we have been able to transfer our mobile phone connection customers to one of the most respected organisations in the market. Our customers will benefit from Premier Telecom's expertise and we will be able to concentrate on our expanding mobile business applications solutions
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Crimson Tide plc Barrie Whipp, Executive Chairman
| 01892 542444 |
WH Ireland James Joyce | 020 7220 1666 |
Threadneedle Communications Josh Royston/Alex White
| 020 7653 9850 |
About Crimson Tide
Crimson Tide is a mobile software group with offices in Tunbridge Wells, UK and Dublin, Ireland.
Crimson Tide supplies Mobile Applications for Business including a smartphone, software and all services on a monthly subscription basis. Its mpro apps provide everything people working out of the office need to do their job more effectively. Subscribers range from Blue chips to small enterprises and government institutions and incorporate facilities management, nursing, logistics and patient solutions.
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