On 26 July, Crimsonwing plc published its Annual Report for the financial year ended 31 March 2010. The results show a 1.7% increase in revenue to €12.3 million with no significant exchange rate differences from the previous year. Moreover Crimsonwing implemented various cost saving measures during the year including the waiver by the Chairman and CEO of their salary. This helped overall direct costs to decline by 4.3% to €7.3 million while administrative expenses dropped by 13% to €4.4 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to €0.57 million, a significant improvement over last year’s negative EBITDA of €0.65 million on a like-for-like basis (excluding last year’s fair value gain on valuation of VDA’s assets after acquisition). The higher EBITDA generation was due to the improved results reported by the operating businesses in the UK and Malta. However, the business in the Netherlands reported a worsened performance due to the deeper recession that hit the country. Nonetheless the CEO has committed to take a more active role in the management of this business in order to turnaround this business segment.
After accounting for a higher net interest expense of €105,329 (2009: €75,883), Crimsonwing reported a pre-tax profit of €52,071 compared to the pre-tax loss of almost €570,700 incurred in the previous financial year. After deducting the tax charge and taking into consideration minority interests, the Crimsonwing Group reported a minimal net loss of €19,217 (2009: net loss of €597,823).
The Directors did not recommend the payment of a dividend.
Download a copy of the Crimsonwing plc Annual Report for the financial year ended 31 March 2010.