Crimson Tide losses 'slightly smaller' than expected

Mobility technology and software company Crimson Tide said in a trading update on Thursday that revenue in 2021 was “slightly ahead” of expectations of £4m.

The AIM-traded firm said following its fundraise in April, the deployment of investment capital led to “slightly smaller” losses for the year than the £0.7m expected at the EBIT and profit before tax levels.

It said its results were boosted by increased subscribers for the ‘mpro5’ product, for both new and existing clients, with its activities in rail and food safety “standing out” in terms of additions to base subscriptions.

Year-end cash totalled more than £5.5m, following good performance by mpro5 and slight delays in deploying capital, mainly through supplier delays.

“Our goal is to continue to standardise mpro5 for a wide range of businesses and we are deploying our capital in developing our platform in international, and vertical markets,” the board said of the company’s outlook.

“This will enable us to scale, whether it is through partner acquisition, direct sales to microbusiness or our enterprise-level offering.”

Crimson Tide said its goal was to reach EBITDA breakeven during 2022, although it said it believed that top-line growth was open across its sectors and internationally, meaning it would invest capital further where it saw opportunity.

“The directors remain confident in future growth and believe that our ability to scale the business has never been greater.”

Crimson Tide said it would publish its results for the 12 months ended 31 December in early April.

At 1215 GMT, shares in Crimson Tide were down 12.73% at 2.4p.