Crimson Tide PLC Trading Update (8207U)
28 November 2023 - 6:00PM
UK Regulatory
TIDMTIDE
RNS Number : 8207U
Crimson Tide PLC
28 November 2023
28 November
Crimson Tide plc
("Crimson Tide" or "the Company")
Trading Update
Crimson Tide Plc (TIDE) ("Crimson Tide" or "The Company"), the
provider of the mpro5 solution, is pleased to provide the following
trading update.
In our interim results for the period to 30 June 2023, we
highlighted our ongoing focus on profitability and customer
success. Since then, we have seen continued interest in our
services, driven by clients' impetus towards more efficient
environments using mpro5 to verify, audit and improve their
processes. At the same time, we have focussed on our own
operational efficiency, which, together with continued robust gross
margins, means the Board now expects to deliver improved EBITDA
from operating efficiencies in the current year, which we now
expect to:
-- partially reinvest in further growth marketing activities and
partner acquisition in the UK and United States; and
-- drive an EBITDA performance in FY23 of no less than GBP0.4m*
(FY22: LBITDA -GBP0.4m), significantly ahead of the Board's prior
expectation and a reduced Loss Before Tax of approximately GBP-0.7m
(FY22: -GBP1.7m). The Loss After Tax is expected to be reduced and
in the region of GBP-0.3m (FY22 -GBP-1.2m). *FY23 turnover is
expected to be in line with the Board's current expectations.
The Group is continuing to deliver its objective to build a high
growth long-term SaaS business with strong recurring revenues. The
sectors in which we operate have been focused on Facilities
Management, Retail and Food Service, allowing us to deliver at
scale. Our goal is to continue to standardise mpro5 for a wide
range of businesses, enabling us to scale through partner
acquisition and direct sales to both SMEs and the larger
enterprise-level offering. Top-line growth is now open to us across
all of these sectors, both in the UK and internationally.
By partially reinvesting the gains achieved, we believe that we
are strongly placed and on track to ensure we achieve sustained
growth for the business going forward. The Directors remain
confident in future performance and believe that our ability to
scale the business has never been greater. This is underpinned by a
robust balance sheet, strong pipeline of new business and
increasing visibility. The Group's current cash position stands at
GBP2.8m, with an R&D tax refund of an anticipated minimum of
GBP0.3m due imminently.
Our foremost goal is to continue to demonstrate robust growth in
annually recurring revenues. These positive outcomes demonstrate
that we can scale the business very efficiently as we grow our
top-line revenues.
Full-year results are expected to be published in early April.
The numbers in this update remain subject to audit.
* For the purpose of this announcement, the Group believes
market expectations for FY23 to be revenue of GBP6.2m, and adjusted
EBITDA of GBP0.2m. Adjusted EBITDA is calculated as profit before
tax, interest, depreciation, amortisation, share-based payment
charges and foreign exchange.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
Enquiries:
Crimson Tide plc +44 1892 542444
Barrie Whipp / Jacqueline Daniell
Cavendish Capital Markets Ltd (Nominated Adviser and Broker) +44
20 7220 0500
Julian Blunt / Dan Hodkinson - Corporate Finance
Andrew Burdis - Corporate Broking
Alma PR (Financial PR) +44 7780 901979
Josh Royston
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