Announcement PDF RNS Number : 6869K Crimson Tide PLC 30 May 2025 The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time. Upon the publication of this announcement, this information is now considered to be in the public domain. 30 May 2025 Crimson Tide plc ("Crimson Tide", "the Company" or "Group") Second interim results for the six months ended 31 December 2024 Crimson Tide plc (TIDE), the provider of the mpro5 process management app, is pleased to announce its unaudited second interim results for the six months ended 31 December 2024. Financial headlines · Exceptional costs of aborted M&A led to loss of £1m at PBT level in the period · Y-o-Y Revenue reduced by 3% due to covid era deal churn and slow sales cycle · Change to April Year End with budgets for April '26 evidencing achievable profitability and cash · High-Margin (87% v 88%) long-term revenue supports refined strategy generation Operational highlights · Post year end management change, right-sizing of team and refocus · Generational Software upgrades of web and mobile clients · Leadership team established improving processes and customer satisfaction Barrie Whipp, Chair, commented, "After a challenging two years involving three approaches for the Company, our long-term contracted, highmargin revenue model continues to support a base where we can aim for profitability at all measures including cash, where the Company is well placed. Our team has been right-sized for our current level of revenue and is motivated to add new customers. It is just as important to extend and expand our offering to existing clients and we continue to succeed in this area. Our software has never been stronger, with significant upgrades to our mobile, web and automation systems. The Board looks forward with confidence in our model and our team." Enquiries: Crimson Tide plc Barrie Whipp(Interim Executive Chairman) Peter Hurter(CFO) +44 1892 542444 Cavendish Capital Markets Limited (Nominated Adviser and Broker) Julian Blunt - Corporate Finance Andrew Burdis - Corporate Broking +44 20 7220 0500 Crimson Tide provides mpro5, the process management app. For further information, see mpro5.com and on Crimson Tide plc, crimsontide.co.uk Chairman's Statement Following the uncertainty caused by three proposed corporate transactions that failed to complete in two years, the Company has produced a creditable performance on slightly lower revenues. We have changed our accounting year end to 30th April to better reflect our trading pattern, and also to allow the significant costs of the above corporate activity to be clearly shown as exceptional items. This has allowed us to set budgets for this, and the coming years focused on profitability across all measures as well as cash generation. During the period, we did not add new recurring revenues at the level we hoped. Part of the reason for this was due to management time being diverted onto corporate work, while part was due to customer signature delays and lengthening sales cycles. However, a five-year contract to provide mpro5 to the consortium managing London's Elizabeth line demonstrates mpro5's attractiveness as a long-term solution to enterprise level clients. A particular food safety sale in the US highlights how we can assist companies make effective strides in food related compliance. During the second half, we consciously reduced overhead to fit our developing business model, and this will mean that we run an even leaner operation than previously. I reemphasize that our focus now is on profitability whilst still allowing us to invest selectively in marketing and growth strategies, which will aid our growth in the coming years. As far as our product is concerned, we have made generational upgrades to our mobile client, culminating in our Saturn release in the period, and 2025 will see us accelerate the amortisation of our legacy mobile software. Saturn brings more efficient processing, enhanced functionality and a sleek user interface for mobile users, supported by the latest versions of Ionic and Angular technologies. Our Odyssey web client will not only make our own staff more efficient, but it will also make usage of mpro5 on the web by our clients more easy and more intuitive. Clients will be able to use mpro5 without our intervention, which should aid new sales as well as enhance the experience for existing customers. Our Odyssey investment should also further increase margins, which are already approaching 90%. We have commenced our evolution of our Onwards software which simplifies procedures into mpro5's new Titan process configurator. We are exploring mpro5's AI potential, an enhancement of Titan, not an entirely new technology, in the second half of the year. Our product has never been stronger, and its flexibility sets it apart from competitor offerings. Operationally we have been successful in right-sizing our team and are concentrating on customer satisfaction with mpro5 to improve our CSat and NPS figures. We experienced slippage during the corporate activities as management focus was blurred. We continue to renew and upsell to clients, our preferred sales methodology, but our churn was disappointing due to a customer selecting a weaker, but cheaper solution at the end of our contract. Our Balance Sheet has experienced a revaluation of our software intangible asset to reflect a desire to shorten our amortization period and reduce the valuation of legacy software. Our goal is that capitalized development cost is similar to the amortized value on an annual basis reflecting continual improvements in our product. Cash was strong, save for fees on the aborted transactions. In summary, few organisations will have experienced the distractions of three approaches for the Company in two years. It is entirely expected that performance would be adversely affected. I stepped in as Interim Executive Chair to regularize and refocus the business. This has been achieved in short order, and our strategy is being implemented by our management team, focusing first on profitable performance and then on new growth tactics based upon direct business development. A process of selecting a new Chair is under way and an announcement can be expected soon. Peter Hurter has now agreed to remain in post as CFO pending appointment of a replacement, the process for which is also now well under way. I am confident that the Company, after a reset at the top line and with operating costs tailored accordingly, will be profitable, cash generative and in safe hands. Barrie Whipp Interim Executive Chairman 30 May 2025 Financial Review Financial indicator Revenue Gross Profit Exceptional items (one-off) (LBITDA)/EBITDA Loss before tax Annual recurring revenue (ARR) Cash Churn rate Six months ended 31 December 2024 £'000 2,829 2,455 (495) (198) (1,000) 5,241 2,066 14.9% Six months ended 31 December 2023 £'000 3,112 2,740 314 (217) 5,750 3,255 16.0% Year ended 31 December 2024 £'000 5,971 5,226 (495) 130 (1,211) 5,241 2,066 14.9% Year ended 31 December 2023 £'000 6,155 5,306 420 (688) 5,750 3,255 16.0% Revenue The revenue decrease of 9% compared to the corresponding period in 2023 relates to the conclusion of two Covid-era deals where the customers' requirements have changed. These contracts represent 10.2% of the churn for the period. High demand from existing customers for one-off projects contributed 10% to revenue. At least one of these projects have culminated in recurring revenue upsell post period-end, and illustrates the continued success of the Company's land-and-expand strategy. Revenue for the full-year period consequently only decreased 3% compared to 2023. The marginal reduction in the gross profit rate of 86.8% (H2 2023: 88%) relates to maintaining the cloud infrastructure of both the legacy app and the new Odyssey web client. This rate is expected to improve as customers migrate to the new version. Exceptional items Exceptional items include redundancy costs of approximately £0.43m. These costs will contribute approximately £1m to savings on an annualised basis post period-end. Other exceptional items relate to professional fees in relation to the bid approach made by Ideagen Limited in June 2024. Cashflow and liquidity Cash at the period-end was £2.1m (H2 2023: £3.3m). Net cash contributed by operating activities was £0.2m (H2 2023: £1.2m). Lease liabilities Lease liabilities relate to an office lease agreement which was concluded at the beginning of 2022. The lease liability is currently valued at £0.5m (H2 2023: £0.7m) and the related Right-of-Use asset recognised under IFRS16. The lease liability will be settled, and the related asset depreciated, over a 5-year period. Intangible assets Software development costs of £0.5m (H2 2023: £0.8m) were capitalised during the period under review, while amortisation amounted to £0.3m (H2 2023: £0.3m). The value of the capitalised software intangible asset at period-end was £3.5m (H2 2023: £3.3m). Other intangible assets related to goodwill, website development costs and incremental contract costs. As previously announced, we expect the 16-month results to 30 April 2025 to show a write-down of approximately £1.0m in relation to the carrying value of the Company's intangible software asset and a change of the related amortization period to six years (currently seven years). Loss before taxation The Company made a loss before taxation of £1m (H2 2023: £0.2m loss). This loss includes the exceptional items of £0.5m (H2 2023: £0) referred to above. Earnings per share Basic and diluted loss per share was 14.78p (H2 2023: 0.52p loss per share) during the period under review. 124,000 share options outstanding were not included in the calculation of diluted earnings per share because they are anti-dilutive in terms of IAS 33. Crimson Tide plc Condensed Consolidated Statement of Profit or Loss for the 6 months to 31 December 2024 Unaudited 6 Months ended 31 December 2024 £000 Unaudited 6 Months ended 31 December 2023 £000 Audited 12 Months ended 31 December 2023 £000 Revenue 2,829 3,112 6,155 Cost of Sales (374) (372) (849) Gross Profit 2,455 2,740 5,306 Other income 1 - - (3,440) (2,943) (5,942) Administrative expenses Finance costs Loss before income tax expense (16) (14) (52) (1,000) (217) (688) Taxation 28 183 383 (972) (34) (305) Unaudited 6 Months ended 31 December 2024 Unaudited 6 Months ended 31 December 2023 Audited 12 Months ended 31 December 2023 Basic (pence) (14.78) (0.52) (4.64) Diluted (pence) (14.78) (0.52) (4.64) Unaudited 6 Months ended 31 December 2024 £000 Unaudited 6 Months ended 31 December 2023 £000 Audited 12 Months ended 31 December 2023 £000 (972) (34) (305) Exchange differences on translating foreign operations 94 (1) (19) Total comprehensive loss recognised in the period and attributable to equity holders of parent (878) (35) (324) Loss after taxation Loss per share Condensed Consolidated Statement of Comprehensive Income for the 6 months to 30 June 2024 Loss for the period Other comprehensive income/(loss) for period: Condensed Consolidated Statement of Financial Position at 31 December 2024 Unaudited As at 31 December 2024 £000 ASSETS Non-current assets Audited As at 31 December 2023 £000 Intangible assets Property, plant & equipment Right-of-use asset Total non-current assets 4,353 175 418 4,946 4,440 237 571 5,248 Current assets Trade and other receivables Cash and cash equivalents Total current assets 1,167 2,066 3,233 1,182 3,255 4,437 Total assets 8,179 9,685 1,199 223 1,422 1,514 199 1,713 273 468 273 468 Total liabilities 1,695 2,181 Net assets 6,484 7,504 Share capital 657 657 Share premium 5,590 5,590 Other reserves 430 427 Reverse acquisition reserve (5,244) (5,244) Retained earnings 5,051 6,074 Total equity 6,484 7,504 LIABILITIES Current liabilities Trade and other payables Lease liabilities Total current liabilities Non-current liabilities Lease liabilities Total non-current liabilities EQUITY Condensed Consolidated Statement of Changes in Equity Six-month period ended 31 December 2024 (Unaudited) Share capital £000 Share premium £000 Other reserves £000 Reverse acq'n reserve £000 Retained earnings £000 Total £000 657 5,590 336 (5,244) 6,023 7,362 Loss for the period - - - - (972) (972) Translation movement - - 94 - 94 Balance at 30 2024 Balance at 31 June - December 2024 657 5,590 430 (5,244) 5,051 6,484 Six-month period ended 31 December 2023 (Unaudited) Share capital Share premium Other reserves Reverse acq'n reserve Retained earnings Total £000 £000 £000 £000 £000 £000 657 5,590 460 (5,244) 6,039 7,502 Loss for the period - - - - (34) (34) Cancelled share options - - (26) - 69 43 Share options expense - - (6) - - (6) Translation movement - - (1) - - (1) 657 5,590 427 (5,244) 6,074 7,504 Retained earnings £000 Total £000 Balance at 30 2023 June Balance at 31 December 2023 Condensed Consolidated Statement of Changes in Equity Year ended 31 December 2023 (Audited) Share capital £000 Share premium £000 Other reserves £000 Reverse acquisition reserve £000 Balance at 1 January 2023 657 5,590 493 (5,244) 6,310 7,806 Loss for the period - - - - (305) (305) Share options cancelled - - (69) - 69 - Share options expense - - 22 - 22 Translation movement - - (19) - - (19) 657 5,590 427 (5,244) 6,074 7,504 Balance at 31 December 2023 - Condensed Consolidated Statement of Cash flows For the 6 months to 31 December 2024 Unaudited 6 Months ended 31 December 2024 Unaudited 6 Months ended 31 December 2023 Audited 12 Months ended 31 December 2023 £000 £000 £000 (1,000) (217) (688) 651 387 758 Depreciation of property, plant and equipment 35 39 74 Depreciation of right-of-use assets 100 73 206 Unrealised currency translation movement 94 (1) (19) Interest Paid 16 14 52 (104) 37 332 22 405 Decrease in trade and other receivables 88 720 464 Increase/(decrease) in trade and other payables 51 (155) 54 Cash generated by operations 35 897 923 Interest paid in cash (16) (54) (52) Cash flows from operating activities Loss before tax Adjustments for: Amortisation of Intangible Assets Share option expense Operating cash flows before movement in working capital and provisions Income taxes received 220 407 407 Income taxes paid Net cash generated from operating activities (32) (24) (24) 207 1,226 1,254 Purchases of property, plant and equipment (2) (13) (47) Purchases of other intangible assets (6) 77 (223) Development expenditure capitalised (542) (662) (1,163) Net cash used in investing activities (550) (598) (1,433) Repayments of lease liability (93) (238) (184) Net cash used in financing activities (93) (238) (184) Net movement in cash and cash equivalents (436) 390 (363) Cash flows from investing activities Cash flows from financing activities Net cash and cash equivalents at beginning of period 2,502 2,865 3,618 Net cash and cash equivalents at end of period 2,066 3,255 3,255 Crimson Tide Plc Notes to the Unaudited Second Interim Results for the 6 months ended 31 December 2024 1. General information and basis of preparation Crimson Tide plc is a public company, limited by shares, and incorporated and domiciled in the United Kingdom. The Company's shares are publicly traded on the London Stock Exchange's AIM market. The address of its registered office is Brockbourne House, 77 Mt. Ephraim, Tunbridge Wells, Kent, TN4 8BS. Basis of preparation The condensed consolidated second interim financial statements ("interim financial statements") have been prepared using accounting policies that are consistent with those applied in the previously published financial statements for the year ended 31 December 2023, which have been prepared in accordance with UK-Adopted International Accounting Standards. The information for the period ended 31 December 2024 has neither been audited nor reviewed and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The interim financial statements should be read in conjunction with the consolidated financial statements for the year ended 31 December 2023. A copy of the statutory accounts for that period has been delivered to the Registrar of Companies and is available on the Company's website. 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. Key estimates and judgements used in the preparation of the interim financial statements remain unchanged from those noted in the published financial statements for the year ended 31 December 2023. Going concern The interim financial statements are prepared on the going concern basis. The financial position of the Company, its cash flows and liquidity position are described in the interim financial statement and notes. The Company has the financial resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. 2. Revenue and operating segments The Group has three main regional centres of operation; one in the UK, the others in Ireland and the United States but the Group's resources, including capital, human and non-current assets are utilised across the Group irrespective of where they are based or originate from. The Board is the chief operating decision maker ("CODM"). The CODM allocates these resources based on revenue generation, which due to its high margin nature and the Group's reasonably fixed overheads, in turn drives profitability and cashflow generation. The Board consider it most meaningful to monitor financial results and KPIs for the consolidated Group, and decisions are made by the Board accordingly. In due consideration of the requirements of IFRS 8 Operating Segments, the Board consider segmental reporting by (i) business activity, by turnover, and (ii) region, by turnover to be appropriate. Business activity is best split between (i) the strategic focus of the business, i.e. mobility solutions and the resulting development services that emanate from that and (ii) non-core software solutions, including reselling third party software and related development and support services. Segment information for the reporting periods is as follows: Unaudited 6 Months Ended 31 December 2024 £000 Unaudited 6 Months Ended 31 December 2023 £000 Audited 12 Months ended 31 December 2023 £000 2,467 2,733 5,612 Revenue by business activity Mobility solutions and related development Software consultancy 362 379 543 2,829 3,112 6,155 Unaudited 6 Months Ended 31 December 2024 £000 Unaudited 6 Months Ended 31 December 2023 £000 Audited 12 Months ended 31 December 2023 £000 2,553 2,843 5,636 Ireland 221 233 424 US 55 36 95 2,829 3,112 6,155 Revenue can be further analysed by geographic reason as follows: Revenue by geographic region UK 3. Intangible assets Enterprise development expenditure Consumer focused development expenditure Website dev'ment costs £000 £000 5,371 481 Incremental contract costs Goodwill Total £000 £000 £000 £000 960 106 1,098 989 8,524 - 3 - - 484 5,852 960 109 1,098 989 8,040 Enterprise development expenditure Consumer focused development expenditure Website dev'ment costs Incremental contract costs Goodwill Total £000 £000 £000 £000 £000 £000 Cost At 1 July 2024 Additions At 31 December 2024 Amortisation and impairment At 1 July 2024 (2,543) (253) (70) (1,086) (190) Charge for the period (284) (198) (19) (12) - (513) At 31 December 2024 (2,827) (451) (89) (1,098) (190) (3,629) Carrying amount at 31 December 2023 2,516 831 46 248 799 4,440 Carrying amount at 31 December 2024 3,025 509 20 - 799 4,353 (4,142) 4. 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 loss 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 loss and weighted average number of ordinary shares used in the calculation are set out below: Unaudited 6 Months ended 31 December 2024 Unaudited 6 Months ended 31 December 2023 Audited 12 Months ended 31 December 2023 (972) (34) (305) Reported basic earnings per share (pence) (14.78) (0.52) (4.64) Reported diluted earnings per share (pence) (14.78) (0.52) (4.64) Unaudited 6 Months ended 31 December 2024 Unaudited 6 Months ended 31 December 2023 Audited 12 Months ended 31 December 2023 No. '000 No. '000 No. '000 6,575 6,575 6,575 - - - Earnings per share Reported loss (£000) Weighted average number of ordinary shares Shares in issue at start of period Effect of shares issued during the period Weighted average number of ordinary shares for basic EPS Effect of share options outstanding Weighted average number of ordinary shares for diluted EPS 6,575 6,575 6,575 - - - 6,575 6,575 6,575 On 31 October 2023 the Company completed a 100:1 share consolidation exercise. Basic and diluted EPS were retrospectively adjusted in accordance with the requirements of IAS 33 to achieve comparability. At 31 December 2024 there were 124,000 (31 December 2023: 131,000) share options outstanding. These share options were not included in the calculation of diluted earnings per share because they are antidilutive in terms of IAS 33. The reduction in share options relates to the resignation of certain employees who held options, and as a result, in accordance with the terms of the share option agreements, the options were cancelled. 5. Related party transactions Other than the interests of Directors, being in shares, share options and remuneration, no transactions with related parties were undertaken such as are required to be disclosed under International Accounting Standard 24. This information is provided by RNS, the news service of the London Stock Exchange. 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