Interim Results

Crimson Tide PLC 27 September 2007 Crimson Tide plc ('Crimson Tide' or 'the Company') (A leading service provider of mobile data solutions for business) Announcement of Interim Results to 30 June 2007 Highlights * Turnover up over 50% to £715,000 in the 6 months to 30 June 2007 (6 months to 30 June 2006: £472,000) * Further growth in contracted revenues * Microsoft Gold Partner status achieved Barrie Whipp, Executive Chairman, commented: 'We have made great progress in the year to date and our customer base and revenues continue to grow. Our pipeline of new business is very exciting and I am confident of our future prospects'. Chairman's Statement I am pleased to report on your Company's progress in the first half of the year to 30 June 2007. This is the first interim report since the Company's reverse takeover by A. Cohen & Co. plc in August 2006. We have made very good progress in a number of areas. Turnover has increased to £715,000, an increase of more than 50% over the comparative period last year. More importantly, our contracted long-term revenue base is increasing all the time and it remains our priority to secure recurring subscription revenues over the more immediate one-off sales generated by our historic software business. At the EBITDA level the loss for the half year was £222,000, very similar to our expectations. The second half of the year has started with good growth from new business in mobile data solutions and a strong pipeline of opportunities in place. Many of our subscription contracts are confidential in nature. However, I can say that our solutions are being used in the shops and offices of a wide range of household names in retail, banking and financial services, as well as in field service environments. An increasing number of organisations are achieving a real return on investment from being able to fulfil their tasks using our range of smartphone solutions. The period saw developments in the range of services we offer and many of the deals being concluded are now standardised for vertical markets. In addition, we have expanded our sales team who are working hard to conclude a wide range of opportunities. Our relationship with Microsoft has strengthened considerably. The company recently achieved Gold Partner status and I was a primary speaker at the Microsoft Worldwide Partner Conference in Denver. We are planning our participation at further events, which will raise our profile in the Microsoft community. Our subsidiary in Ireland has performed better than expected and we are implementing a number of exciting solutions in this market. Our acquisition model has proved robust and we continue to seek further growth by acquiring companies of a similar nature. The Directors are focused on driving the business forward to achieve an early break-even position, ensuring that our contracted book of long-term receivables enhances shareholder value. We are confident in the Company's future and continue to work hard to maximise our opportunities in an exciting market. Barrie Whipp Executive Chairman 17 September 2007 Operational Review During the first six months of 2007 the Group's priorities have been primarily focused on three areas: • Targeted sales and marketing spend aimed at identified vertical markets where we have had successes to date • Increasing front line sales resources and expertise to accelerate growth in mobile data solutions • Integration of acquisition in Ireland Some of the funds raised on the reverse takeover in August 2006 and in the further placing completed in June 2007 have been utilised on marketing the portfolio of mobile data solutions we have, with particular focus on vertical markets with most potential. To date, we have specifically targeted businesses involved with facilities management, cleaning companies and field based service engineers. This strategy has been demonstrated to be very successful and resulted in new and growing subscription business. The chosen solutions include electronic forms providing real-time information and replacing paper based systems, some with signature capture and some with more complex functionality. All are very affordable with the subscription model we have adopted and all immediately increase our customers' productivity, with real, identifiable benefits to their organisation. New sales resources have followed up the emerging opportunities identified in the various marketing campaigns. After an initial learning period, we are now benefiting from this investment, securing new subscription business at an accelerating rate. Many businesses now recognise the considerable benefits of being able to work effectively when away from the office. As a result, the sales cycle is becoming shorter and there are numerous encouraging signs of growth within the areas we operate. In addition, the channel market is showing a great deal of interest in our services and solutions, aided by our Microsoft Gold Certification, which we will exploit over the coming months. The acquisition in Ireland late last year has given us increased geographical coverage. The business, now renamed Crimson Tide (IE) Limited has been successfully integrated into the Group with key personnel in Ireland making a significant contribution to this achievement. Back office activities have been centralised in the UK leaving the Irish business profitable and cash generative in the first half of 2007. Cross selling opportunities are being progressed and I will advise further on this in the year end accounts. Crimson Tide's employees have risen to the challenges brought about by the increasing rate of growth and new business being secured. We introduced an Enterprise Management Incentive (EMI) share option scheme and granted 11 million share options in February as an added incentive and in recognition of the recipients' efforts to date. The options satisfy the EMI scheme requirements and are aligned to shareholders' aims, only being exercisable if the Group's share price increases by 66% from the valuation at the time of the reverse acquisition. I would like to take this opportunity to thank the whole Crimson Tide team for their continuing dedication and hard work. We are very pleased with the progress we have made so far, the results of which will become more apparent as the growing monthly subscription revenues accumulate over their contracted periods. The market in which we operate is increasingly familiar with the benefits of mobile working and we are confident that the outlook for the business is very promising. Stephen Goodwin Chief Executive 17 September 2007 Enquiries: Crimson Tide plc 01892 542444 Barrie Whipp, Executive Chairman W.H. Ireland Limited 0121 616 2101 Tim Cofman-Nicoresti Crimson Tide Plc Unaudited consolidated income statement for the 6 months to 30 June 2007 Unaudited Unaudited Audited 6 Months ended 6 Months ended 14 Months ended 30 June 2007 30 June 2006 31 December 2006 £000 £000 £000 Revenue 715 472 1,105 Cost of sales (307) (225) (524) Gross profit 553,191 553,191 553,191 408 247 581 Total operating expenses (648) (295) (876) Loss from operations (240) (48) (295) Interest income 7 - 6 Interest payable and similar charges (8) (3) (8) Loss before taxation (241) (51) (297) Tax on loss on ordinary activities - - - Loss for period attributable to equity holders of the parent (241) (51) (297) Loss per share Basic and diluted loss per ordinary share (0.09)p (0.07)p (0.13)p Unaudited consolidated balance sheet as at 30 June 2007 Unaudited Unaudited Audited As at As at As at 31 30 June 2007 30 June 2006 December 2006 £000 £000 £000 Fixed Assets Intangible assets 850 271 732 Equipment, fixtures & fittings 27 20 24 877 291 756 Current Assets Inventories 23 11 28 Trade and other receivables 290 166 414 Cash and cash equivalents 267 24 394 Total current assets 580 201 836 Total assets 1,457 492 1,592 Equity and liabilities Equity Share capital 5,789 730 5,679 Capital redemption reserve 49 - 49 Share premium 1,010 279 915 Other reserves 457 - 457 Reverse acquisition reserve (5,244) - (5,244) Retained earnings (1,404) (927) (1,163) Total Equity 657 82 693 Creditors Amounts falling due within one year 681 376 763 Creditors Amounts falling due after more than one year 119 34 136 Total liabilities 800 410 899 Total equity and liabilities 1,457 492 1,592 Unaudited consolidated statement of changes in equity as at 30 June 2007 Capital Reverse redemp-tion acquis-ition reserve reserve Share Share premium Other Retained capital reserves earnings Total £000 £000 £000 £000 £000 £000 £000 Balance as at 31 730 - 279 - - (876) 133 December 2005 Loss for the period - - - - - (51) (51) Balance as at 730 - 279 - - (927) 82 30 June 2006 Balance as at 31 5,679 49 915 457 (5,244) (1,163) 693 December 2006 Loss for the period - - - - - (241) (241) Proceeds from new 110 - 95 - - - 205 shares issued during 6 months Balance as at 5,789 49 1,010 457 (5,244) (1,404) 657 30 June 2006 Unaudited consolidated statement of cashflows for the 6 months to 30 June 2007 Unaudited Unaudited Audited 6 Months 6 Months 14 Months ended ended ended 30 June 30 June 31 December 2007 2006 2006 £000 £000 £000 Cash flows from operating activities Loss from operations (240) (48) (295) Adjustments for: Amortisation of Intangible Assets 16 16 47 Depreciation of equipment, fixtures and fittings 2 7 23 Operating cash flows before movement in working capital (222) (25) (225) and provisions Decrease in inventories 5 - 17 Decrease in trade and other receivables 123 10 - (Decrease)/Increase in trade and other payables (207) 28 (33) Cash generated from operations (301) 13 (241) Income taxes paid - - - Net cash (used in)/ from operating activities (301) 13 (241) Cash flows from investing activities and servicing of finance Purchase of fixed assets (4) (9) - Acquisition of subsidiaries - - (467) Interest received 7 - 6 Interest paid (8) (3) (8) Net cash used in investing activities (5) (12) (469) Cash flows from financing activities Proceeds on issues of shares 205 - 848 Net (decrease)/increase in borrowings (22) 1 147 Net cash from financing activities 183 1 995 Net (decrease)/increase in cash and cash equivalents (123) 2 285 Net cash and cash equivalents at beginning of period 371 22 86 Net cash and cash equivalents at end of period 248 24 371 December Crimson Tide plc Notes to the Unaudited Interim Results for the 6 months ended 30 June 2007 1. Basis of preparation of interim report The information for the period ended 30 June 2007 does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. It has been prepared in accordance with the accounting policies set out in, and is consistent with, the audited financial statements for the fourteen months ended 31 December 2006. A copy of the statutory accounts for that period has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain statements under Section 237(2) or (3) of the Companies Act 1985. The interim financial report has been prepared using accounting policies consistent with International Financial Reporting Standards. The financial statements have been prepared under the historical cost basis and the comparative information relates to Crimson Tide mPro Limited reflecting a continuation of the business of Crimson Tide mPro Limited following the reverse acquisition by A. Cohen & Co. plc in 2006. 2. Loss per share The calculation of the basic and diluted loss per share is based on the following data: Unaudited Unaudited Audited 6 Months 6 Months 14 Months ended ended ended 31 30 June 30 June December 2007 2006 2006 Earnings Reported loss (£000) (241) (51) (297) Reported loss per share (pence) (0.09) (0.07) (0.13) No. 000 No. 000 No. 000 Weighted average number of ordinary shares: Shares in issue at start of period 279,904 73,003 200,759 Effect of shares issued during the period 1,537 - 23,331 Weighted average number of ordinary shares for 281,441 73,003 224,090 the purpose of basic earnings per share Due to the Group's loss for the period, the diluted loss per share is the same as the basic loss per share. This information is provided by RNS The company news service from the London Stock Exchange

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