Business
Premier Telecoms Agreement
Premier Telecoms Agreement.
About this update from Crimson Tide Plc
[{"type":"text","content":"\n \nRNS Number : 9820N Crimson Tide PLC 12 September 2011 \n \n\n12 September 2011\nCRIMSON TIDE plc\n(\"CRIMSON TIDE\" or \"The Company\") \nPREMIER TELECOM AGREEMENT\nCrimson Tide is pleased to announce that it has entered into an agreement to assign the future value of expected income from its non-core mobile phone connections business to Premier Telecom Limited, a Vodafone Platinum partner. A cash sum of £120,000 is payable upon completion. Premier Telecom is in the process of becoming a Crimson Tide partner, and will resell the Company's mobile data applications, whilst Crimson Tide will place future mobile phone connections achieved as part of its mobile data applications business with Premier Telecom.\n \nThe agreement reflects a change in the nature of the connections business whereby up front payments from the mobile networks are being replaced with revenue share agreements. As Crimson Tide's marketing and business development plans remain focused on growing its higher margin, core mobile business applications, the Directors believe that this agreement represents an excellent opportunity for the Company. The proceeds will be applied to the Company's core mobile business applications. \n \nFor the year ended 31 December 2010 the connections business contributed gross operating profits of approximately £200,000 before accounting for a significant percentage of the Company's administrative and support costs. Given the change in nature of the mobile phone business, , its contribution was forecast to be considerably lower in this and future years. There will be an effect on turnover for the current financial year, ending 31 December 2011, but given growth in the Company's contracted, long-term subscriber agreements, there is not expected to be any material impact upon the Company's expected profit before tax performance. The future receivables from the mobile phone connections business had no carrying value in the Company's accounts and the transfer has no effect on Crimson Tide's subscriber numbers. \n \nBarrie Whipp, Executive Chairman commented \"In the increasingly commoditised mobile communications market, we have been able to transfer our mobile phone connection customers to one of the most respected organisations in the market. Our customers will benefit from Premier...