Shares of Crimson Tide, a mobility-solutions and software-development services company, dropped by 15% in early trade on Monday. The company announced that its second-half performance will be impacted by a customer entering administration. Despite this setback, Crimson Tide still expects its revenue to grow.
At 7:16 GMT, the company’s shares were down by 0.35 pence, reaching 1.85 pence.
For the first half ended June 30, Crimson Tide reported a pretax loss of £471,000 ($576,551), compared to a loss of £860,000 for the same period last year. However, the company saw promising growth in its revenue and annual recurring revenue. Revenue increased by 31% to £3.0 million, and annual recurring revenue rose by 35% to £5.9 million. These metrics are projected to continue growing at a rate of around 20% in the second half.
In terms of earnings before interest, taxes, depreciation, and amortization (EBITDA), Crimson Tide showed improvement. The company achieved £106,000 in EBITDA compared to a loss of £344,000 in the previous year.
Founder and Chairman Barrie Whipp expressed optimism about the company’s performance, stating, “We have experienced strong revenue growth and have returned to EBITDA profitability as planned. Annual recurring revenue has significantly increased, and our pipeline is filled with exciting opportunities.”
Despite the setback caused by the customer entering administration, Crimson Tide remains focused on driving growth and capitalizing on its expanding pipeline.
Written by Najat Kantouar
