Crimson Tide sinks as key customer exercises break clause

(Sharecast News) - Software developer Crimson Tide warned on Wednesday that a significant customer, representing approximately 12% of annual recurring revenues for the years ending April 2025 and 2026, will exercise a contract break clause, effective 31 March.

Whilst Crimson Tide said it was "disappointed to lose a valued customer", it noted that the change will release "considerable resources" previously dedicated to servicing this account, with the customer requiring "significant bespoke development" within its platform.

The AIM-listed firm said the conclusion of the contract will enable it to redeploy resources towards higher-margin opportunities, accelerate delivery of core product enhancements and support its strategy to build "a more scalable SaaS platform".

"Whilst there will be an immediate impact on revenue, the board believes that this transition will benefit the company over the longer term," said Crimson Tide.

Separately, Crimson Tide said it had secured renewal agreements with two customers, representing combined monthly recurring revenues of approximately £14,700 for 12 months.

"Both customers had previously served notice of non-renewal and were therefore classified as churned. Following a renewed focus by the current management team on customer retention, and the implementation of a structured retention strategy focused on maximising customer value from mpro5, the company has successfully re-engaged and retained both customers," added Crimson Tide.

As of 0945 GMT, Crimson Tide shares had slumped 16.46% to 73.10p.









Reporting by Iain Gilbert at Sharecast.com