Crimson Tide (AIM:TIDE ) told investors on Thursday that financial results for the year ending December 2019 reflect “a year of strong growth” for the group.

The provider of mobile business solution, mpro5, reported a 22% revenue increase for the period to £2,921k up from £2,398 in 2018 and representing 81% of recurring revenues.

Despite a strategy of significant increase in sales and marketing expenditure, announced in 2018, the group's profit before tax increased to £352k from £69k in the previous period.

This increased expenditure, which is aimed at spurring company growth, did however affect cash balances and saw Crimson finish at year-end with £320k down from £613k in 2018.

Operating activities generated cash of £358k from £541k in 2018 while EBITDA increased by 57% to £775k from £492k in the previous period.

“Our strategy has been to grow, but not at the expense of leveraged, highly optimistic investment,” said Chairman, Barrie Whipp.

Shares in Crimson Tide were trading 20.93% higher at 2.6p on Thursday morning.

2019 saw the group evolve its key vertical markets, Whipp said, which included the addition of transportation organisations to its growing base of mpro5 clients. 

The software developer scored contract renewals and wins in the retail sector, including a long-term contract with one of the country's leading supermarkets in December 2019.

The period also saw Crimson secure a number of "major" contract awards for its mpro5 software in the rail sector including two major Network Rail managed stations in London.

Meanwhile, the group says it will continue to pursue opportunities in its pipeline for 2020 as well as to round out its marketing function and project its offering to a wider client base. 

“I do perceive significant opportunities for the company, both in terms of our existing vertical markets and new ones,” said Whipp, adding that he foresees “large opportunities” in financial services and the construction, health and safety sectors. 

He added, “Our core, long term contracted revenues underpin our business and we are well placed for future growth.”

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