Crimson Tide profits top expectations as subscriber additions accelerate

Cloud-based managed mobility service Crimson Tide expects profits to come in well ahead of market expectations in its recently wrapped up trading year after an accelerated number of subscriber additions.

Crimson Tide said substantial investments in new sales and marketing staff and associated expenditure had helped the firm convert consultancy and hardware sales revenues into long-term subscription revenue and reduce its debt on device lease agreements.

The AIM-listed outfit saw an accelerated number of subscriber additions, ending the period with an 18% increase in its customer base, all of which will contribute to long-term subscription revenues.

On an operational level, Crimson Tide continued its expansion into Denmark and Dubai during 2018, launched its new mpro5 internet-of-things sales channel and received its maiden NHS order in March - some it is focused on extending to cover further trusts in 2019.

Chief executive Luke Jeffrey said: "2018 has been an incredible year of transformation for the company and our mpro5 platform. We are readily positioned with the right product to prosecute our successful marketing strategy."

"The huge growth in opportunity indicates appetite for our SaaS offering, and the long-term subscription gives us great future visibility of revenues."

As of 1140 GMT, Crimson Tide shares had shot up 15.85% to 2.38p.