Crimson Tide locks in long-term contract with unnamed supermarket giant

23rd Dec 2019 08:13

(Sharecast News) - Business solutions provider Crimson Tide has scored a significant long-term contract win with one of the country's leading supermarkets.
Crimson Tide said on Monday that contracted revenue stemming from the deal was for a minimum of £2.0m over a 60-month term and was for an enhanced roll-out of its mpro5 software - including safety and legal compliance.

The AIM-listed firm said the contract would be delivered on a software-only basis, replacing a previous contract, inked back in October, and reducing support costs and capital requirements to fund expensive rugged PDAs, resulting in higher margins.

Separately, Crimson Tide told investors that full-year pre-tax profits looked set to be "substantially ahead" of 2018 and in line with market expectations.

Turnover for 2019 was expected to show an increase of approximately 15% year-on-year - lower than market expectation, reflecting the move away from lower-margin hardware provision.

Crimson Tide also added that it was currently engaged in several pilots in the transportation industry which were hoped to transition into subscriber contracts in 2020.

As of 0810 GMT, Crimson Tide shares had shot up 13.59% to 2.50p.