27th Sep 2019 09:08
(Alliance News) - Enterprise software firm Crimson Tide PLC on Friday reported a sharp first-half profit rise and a bigger sales pipeline.
For the six months to June 30, Crimson Tide posted pretax profit of GBP101,000, jumping year-on-year from GBP4,000. Revenue rose by 5.5% to GBP1.3 million from GBP1.2 million.
Executive Chair Barrie Whipp said: "I am delighted to report an increase in profitability and turnover in a period where we substantially increased our investment in our sales team."
Crimson Tide provides its mpro5 application, which allows companies to manage their workforces remotely.
During the period, the company secured mpro5 supply contracts with Arriva UK Trains Ltd subsidiaries Northern Rail and Chiltern Railways for a combined value of GBP250,000.
It also secured a contract with an unnamed waste management firm in the Middle East and said it was in the process of finalising a deal with carterer Compass Group PLC in Denmark.
Crimson Tide said its "pipeline of business enlarged and includes more enterprise organisations".
It did warn however that some long-term deals can be five-year investments, which take time to conclude.
Whipp said: "As we are dealing with larger and more complex clients, our sales cycle has been extended but we are well positioned to take advantage of transactions that have been under discussion for some months.
"It should be noted that we are increasing our percentage of Bring Your Own Device business which will impact turnover but, more importantly, improve margins. Our investment in internet of things has started to bear fruit and we are hopeful of further announcements in the near future."
Shares in Crimson Tide were 4.4% lower at 2.20 pence each in London on Friday morning.
By Eric Cunha; [email protected]
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