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Crimson Tide PLC on Tuesday said it expects to report positive Ebitda for financial 2026, although revenue for the period was flat on a pro-rata basis. Crimson Tide shares rose 9.1% to 90.00 pence on Tuesday in London. The Tunbridge Wells, England-based field management software provider reported a ‘significant improvement’ in earnings before interest, tax, depreciation and amortisation, which totalled £1.2 million for the year ended April 30. This was against a loss of around £100,000 for its prior reporting period, the 16 months ended April 30, 2025. Alongside this ‘return to profitability,’ Crimson Tide reported ‘materially improved cash generation, underpinned by disciplined cost control and a resilient recurring revenue base.’ Its cash balance totalled £2.1 million at April 30 with no bank debt, up from £1.3 million one year prior. Revenue was flat at £5.9 million on a pro forma 12month basis. Crimson Tide noted that the £7.9 million revenue generated for the previous 16-month reporting period was ‘not directly comparable’. Monthly recurring revenue was £392,000 at April 30, compared with £468,000 at the start of the year. ‘Overall gross revenue churn for the period was approximately 28%, with the contract loss announced on [December 24] representing the single most significant contributor,’ Crimson Tide noted. The contract in question was with ‘a major retailer,’ the company said at the time, and represented around 12% of annual recurring revenue for financial 2025 and 2026. Crimson Tide also expects to report an approximate £300,000 post-tax profit, ‘a significant turnaround from the £2.0 million loss after tax reported for the prior 16-month period.’ ‘I’m pleased to confirm that phase one of our growth strategy is complete,’ commented Chief Executive Officer Jon Clarke. ‘I am proud of what the team has achieved in FY26 given the situation we inherited. ‘We now move into the next phase, and this is where the hard work will pay off...I look forward to seeing the results of everything we have built as we drive the business into its next stage of growth.’ Crimson Tide noted that the year’s revenue churn ‘will result in a lower revenue base,’ adding: ‘However, the cost base has been carefully structured to reflect this, with targeted investment in sales and marketing to drive pipeline growth and accelerate new customer acquisition, positioning the group for a return to revenue growth in FY27.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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