Crimson Tide reports sharp fall in full-year profits before tax

British software provider Crimson Tide reported a sharp drop in full-year profits.

Profits before tax for 2018 fell to £69,000 from £309,000 one year, with the company attributing the decline to significant new investments in sales and marketing to accelerate its growth potential.

Revenue, rose by 5.4% to £2.40m reflecting a higher percentage of software-only contracts during the year, while administrative expenses increased by 27% to £1.6m.

Equipment operating lease debt decreased by over 40% to £376k (2017: £639k) with net funds doubling to £237k (2017: £118k).

Barrie Whipp CEO of Crimson Tide, said: "A year of significant investment in new Sales & Marketing resource, whilst still producing profitability and net cash, sees Crimson Tide well set for growth. mpro5 has evolved into a gold standard mobility system used in over 260,000 sites and is poised for even wider opportunities".

Crimson Tide shares were falling 7.9% on Tuesday at 2.62p each.