On 28 July Crimsonwing plc published its full-year results for the year ended 31 March 2009. The Company paid a net interim dividend of €0.01 per share in September 2008 but the Directors did not recommend the payment of a final dividend.
The full-year results show a 26% growth in revenue to €12.1 million mainly due to the acquisition of VDA which was completed in July 2008. Moreover organic growth (excluding the purchase of VDA) contributed towards an 11% revenue increase despite the continued weakness of Sterling against the euro which resulted in foreign exchange write downs amounting to €0.28 million.
Moreover during the year ended 31 March 2009, Crimsonwing recognised a €0.14 million bad debt write-off following the bankruptcy of one of its clients, Fraser Eagle. The Group’s administrative expenses as a percentage of revenues jumped from 43% to 56% due to the higher depreciation charge, increased overheads following the integration of VDA and the lower utilisation of Crimsonwing consultants.
As a result, Crimsonwing incurred a net loss of €0.6 million during the year. However, the Directors explained that despite the continuing challenging economic conditions, Crimsonwing has made positive steps to ensure a profitable performance in the future. In fact Crimsonwing also published its Interim Statement on 28 July covering the first quarter of their current financial year. Crimsonwing explained that during the three month period to 30 June 2009, it achieved an EBITDA of €150,000 (which exceeded the company’s expectations) with total revenue up 10% to €2.7 million. Moreover Crimsonwing stated that it added new clients during the first quarter and all business units were profitable including VDA.
A copy of the Preliminary Profits Announcement can be downloaded from here.
Clients interested in receiving a copy of our short note providing further details of Crimsonwing’s results including our opinion are requested to complete a feedback form.