Crimson Tide plc, a provider of the mpro5 process management app, has released its unaudited second interim financial results for the six months ended December 31, 2024. The company experienced a challenging period with a loss of £1m at the profit before tax level due to exceptional costs related to aborted M&A activities. Year-over-year revenue decreased by 3% due to COVID-era deal churn and a slow sales cycle. The company has changed its year-end to April to reflect its trading pattern and has set budgets focused on profitability and cash generation. Operational highlights include management changes, software upgrades, and a refocus on customer satisfaction. The companys long-term contracted, high-margin revenue model remains strong, and the team is motivated to add new customers and expand its offering to existing clients. The balance sheet has been impacted by a revaluation of software intangible assets, and cash flow was strong despite fees incurred from the aborted transactions.
| Financial Indicator | Six months ended 31 Dec 2024 | Six months ended 31 Dec 2023 | Year ended 31 Dec 2024 | Year ended 31 Dec 2023 |
|---|---|---|---|---|
| Revenue | £2,829,000 | £3,112,000 | £5,971,000 | £6,155,000 |
| Gross Profit | £2,455,000 | £2,740,000 | £5,226,000 | £5,306,000 |
| Exceptional items (one-off) | £(495,000) | £0 | £(495,000) | £0 |
| (LBITDA)/EBITDA | £(198,000) | £314,000 | £130,000 | £420,000 |
| Loss before tax | £(1,000,000) | £(217,000) | £(1,211,000) | £(688,000) |
| Annual recurring revenue (ARR) | £5,241,000 | £5,750,000 | £5,241,000 | £5,750,000 |
| Cash | £2,066,000 | £3,255,000 | £2,066,000 | £3,255,000 |
| Churn rate | 14.9% | 16.0% | 14.9% | 16.0% |