Crimson Tide performs ‘exceptionally well’ in first half of 2020
(AIM:TIDE ) told investors that it has performed “exceptionally well” across all areas of the business in its half-year results for the six month period ended 30 June 2020.
The mobile business solution provider reported a total turnover increase of 40% to £1.77m (1H19: £1.27m) while pre-tax profit skyrocketed by 154% to £0.257m (1H19: £0.101m).
EBITDA increased 72% to £0.47m (1H19: £0.274m) while the group detailed that it had witnessed a strong improvement in its net cash position to around £1m (1H19: £0.48m).
"Crimson Tide performed exceptionally well in all areas of the business in the first half,” said Barrie Whipp, Founder & Chairman of Crimson Tide. He added, “All of our management metrics were achieved, and we continued to add quality, long term subscription revenues.”
Alongside its financial achievements, however, the company said it continues ‘to grow into a position of strength in terms of its client base, breadth of offering and quality of contract.’
The company has expanded its base subscriber revenue, particularly in the supermarket and rail sectors with long term contracts, including a five-year contract with one of the country’s largest neighbourhood retailers which will add to revenue visibility to H2 2020 and beyond.
Whipp said the credibility of the group’s client base means that it spends less time in convincing new clients of the benefits of mpro5, Crimson’s cloud-based SaaS mobile workflow solution which enables organisations to drive efficiencies through mobile.
Mpro5 supports over 100,000 users across multiple countries and industries and is provided on a multi-year subscription basis ‘driving immediate return on investment for its users.’
The company has also grown its development team over the period as well as investing in core improvements to the mpro5 platform. Crimson now plans to expand the capabilities of mpro5 into the Internet of Things, particularly population movement and density.
Shares in Crimson Tide have climbed steadily over the past three months and were trading 15.28% higher at 4.15p this morning following the announcement.
Outlook
Crimson has extended a significant healthcare contract, leading it to work on an entirely new version of mpro5 for health which is scheduled to beta in the coming months.
In other forward looking plans, the company intends to expand the capabilities of mpro5 through further developments in IoT, particularly population movement and density, as well as expansion of the API into other enterprise software segments, which should allow the Company to solidify its position in the healthcare sector as well as attack new opportunities.
“Crimson Tide is well set financially, has a team to deliver further growth and an enviable client base,” said Whipp: “The business is set fair for future growth and profitability.”
“Thanks to our fantastic team, led by Luke Jeffrey, we have not been affected by recent political and health events, which shows our strength and agility,” Whipp commented.
He added, “These facts should see us continue to grow and, with our high margin, long term contracted revenue book and innovative nature, we are confident for the future.”
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