LONDON (ShareCast) - (Sharecast News) - Crimson Tide posted a pre-tax loss of £1m for the six months ended 31 December on Friday, driven by exceptional costs related to an aborted acquisition.
The AIM-traded provider of the 'mpro5' process management app also reported a 3% year-on-year decline in revenue, citing the churn of legacy Covid-era contracts and a lengthened sales cycle.

Despite the revenue drop, the company maintained a high gross margin of 87%, only marginally down from 88%, supporting its refined long-term strategy.

Crimson Tide noted that it had also changed its financial year-end to April, adding that budget forecasts for April 2026 pointed to a path toward profitability and positive cash generation.

Operationally, the company said it had undergone a post-period management reshuffle, streamlined its team, and completed significant upgrades to its web and mobile platforms.

A new leadership team had been put in place, which Crimson Tide said was already delivering improvements in internal processes and customer satisfaction.

"After a challenging two years involving three approaches for the company, our long-term contracted, high-margin revenue model continues to support a base where we can aim for profitability at all measures including cash, where the company is well placed," said chair Barrie Whipp.

"Our team has been right-sized for our current level of revenue and is motivated to add new customers."

Whipp said it was "just as important" to extend and expand the firm's offering to existing clients, as it continued to succeed in that area.

"Our software has never been stronger, with significant upgrades to our mobile, web and automation systems.

"The board looks forward with confidence in our model and our team."

At 0843 BST, shares in Crimson Tide were down 4.76% at 50p.

Reporting by Josh White for Sharecast.com.

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