RNS Number:9351U
Croma Group PLC
01 December 2005
1 DECEMBER 2005
CROMA GROUP PLC
("Croma" or "the Group")
FINAL RESULTS FOR THE YEAR TO 30 JUNE 2005
AND
CONTRACTS EXCHANGED FOR FIRST OF TWO ACQUISITIONS
The Board of Croma, the specialists in the design, development and production of
overt and covert surveillance, security and defence related products, is pleased
to announce its Final Results for the year to 30 June 2005.
HIGHLIGHTS
*191% increase in turnover for the first quarter compared with the same
period last year;
*Losses were #971,766 compared with a loss of #457,559 for the previous
year, after goodwill amortisation of #202,665 compared with #34,410 in the
previous year;
*Record order book;
*Cost Savings coupled with increased efficiency from restructuring;
*#250,000 raised through Placing during the year, and a further #250,000
since the year end; and
*Contracts exchanged for the first of two acquisitions - with a specialist
security company.
John French, Chairman of Croma said: "This financial year has been one of
transition for the Group. It has secured a number of valuable contracts and
significant orders continue to be won. Delivery delays have now been resolved
and following restructuring this is now a leaner more cost-effective business.
The current year has started well and I look forward to continued improvement as
we grow both organically and via acquisition."
Enquiries:
Croma Group plc
John French, Chairman & Chief Executive Mobile: 07836 722 482
Bishopsgate Communications Ltd. Tel: 020 7430 1600
Dominic Barretto Mobile: 07930 450 156
Maxine Barnes
CHAIRMAN'S STATEMENT
I have pleasure in announcing the results for the twelve-month period to June
2005.
Financials
Turnover for the year was #1,911,425 compared with #695,320 for the comparative
period last year. Losses were #971,766 compared with a loss of #457,559 for the
previous year, after goodwill amortisation of #202,665 compared with #34,410 in
the previous year. The principle reasons for these losses were two-fold.
Firstly, there were delays in receipt of expected orders for some of the
defence-related products. Added to this, there were also delays in delivering
products in connection with two significant contracts within the last quarter of
the year. These were not the result of activities of the Group, but were due to
the fact that customers were unable to accept delivery in the agreed timescale.
The delays in our being able to deliver in the final quarter of last year have
been resolved and are reflected in a positive start to the current year,
Turnover for the first quarter was up 191% compared with the same period last
year. This included July and August, which are the two quietest trading periods
of our financial year. Added to this, the Group also strengthened its balance
sheet recently by successfully raising #250,000 via a placing at 5p per share
with an institutional shareholder at the same time as agreeing new banking
terms.
Contract exchanged for the first of two acquisitions
It has been the Group's strategy to develop a programme of combined core growth
and acquisitions. In October, the Group confirmed that it was in advanced
negotiations to acquire two separate private companies, which will provide
complementary products to Croma's existing portfolio. The Company has now
exchanged a conditional contract for the first of the two target companies,
which allows Croma to conduct further due diligence on the target.
The initial payment on completion will be a combination of cash and Croma shares
at 6.5p or the mid market quote at the time of completion, which ever is the
highest. Further payments will be by way of performance related earn-out with a
mixture of cash and shares. Completion of this acquisition is expected during
December, following the finalisation of due diligence.
The target transaction, which cannot be formally named due to a confidentiality
clause, is a specialist security company consisting mainly of ex-military and
Special Forces personnel providing a range of security services to major
companies and local authorities, including those operating in the oil industry
and major property based operations. Within the target transaction, there is
also a specialist consultancy, which can deal with the most esoteric of
requests.
The second acquisition under discussion is close to finalising an agreement and
an announcement is expected within the next two weeks.
Strong operational progress
I am pleased to say that all other matters have progressed well and the Group
has now achieved a situation where it has a fully established range of products
across the broad spectrum of its operating subsidiaries. R & D Design Systems
Limited has continued to progress in a positive manner, and has secured valuable
contracts from various aspects of the defence industry with a number of major
contractors. Equally so, Shawley - now a division of Croma Defence Systems
following its acquisition in March 2004 - has re-established itself among its
major customers and is generating increased interest not only in its current
range of products, but also in the development of the new technology products.
I am pleased to say we are receiving significant orders from the defence
industry in terms of R & D Design Systems Limited, and Croma Defence Systems is
also seeing a much strengthened order book from its various operations. The
Group currently has the highest level of order book and prospects that it has
seen to date.
During the latter part of the year to June 2005 we were able to restructure
Croma Defence Systems Limited whereby it now has two distinct operating
divisions - Croma Shawley CCTV products and the Croma Defence Police and
Military products. During the first quarter of the year the Hereford-based
operations of Croma Defence Systems were relocated to Risca, Newport. It now
shares premises, administration and product assembly with Croma Shawley. This
move will have a beneficial impact on operating costs during the current year
and will enable enhanced efficiency in a wide area of their operations of Croma
Defence Systems.
Product portfolio overview
As both governments and private bodies bear responsibility for the protection of
individuals and the community as a whole, safety and security is increasingly
taking a high priority. Croma continues to provide innovative and quality
solutions to meet this escalating demand with their existing surveillance &
counter surveillance products, systems and services.
The Group's current product portfolio includes:
The King IPT 765; WASP; Long Range Surveillance Lenses; Zeus Tactical Light;
Laserbased Sensors; Laser Marksman Training Systems; Computer Surveillance; Low
Light Cameras; and Rapid Deployment Kit.
Outlook
Prospects for the current year, particularly the second half, are encouraging as
we expect to see continued improvement in the trading performance of the
existing operations, as well as further improved performance as a result of
operational reorganisation and emphasis on sales and marketing activities.
Increasing awareness and concern over far-reaching areas of security and the
need for surveillance is of benefit to the products and services offered by
Croma, and provides positive opportunities for the Group with its expanding
range of products and services to meet the increasing demands from the market
place.
I would like to take this opportunity to express my appreciation to all
management and staff for their efforts during the year
John French
Chairman
30 November 2005
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2005
2005 2005 2004 2004
# # # #
Notes Unaudited Unaudited Audited Audited
Turnover
Continuing operations 1,911,425 156,259
Acquisitions - 539,061
-------- --------
1,911,425 695,320
Cost of sales (903,948) (338,270)
-------- --------
Gross profit 1,007,477 357,050
Administrative expenses (1,934,953) (855,974)
-------- --------
Operating loss (927,476) (498,924)
Operating (loss)/profit
Continuing operations (927,476) (657,844)
Acquisitions - 158,920
-------- --------
Loss before interest (927,476) (498,924)
Interest receivable 1,329 7,192
Interest payable and similar (46,431) (5,917)
charges -------- --------
Loss before taxation (972,578) (497,649)
Taxation 812 40,090
-------- --------
Loss after taxation and (971,766) (457,559)
retained ======== ========
Loss per share 3 (0.98p) (1.00p)
======== ========
Fully diluted loss per share 3 (0.98p) (1.00p)
======== ========
The Group had no recognised gains and losses other than the losses for the two
financial years above.
There is no difference between the historical cost losses and the losses for the
two financial years above.
CONSOLIDATED BALANCE SHEET
30 JUNE 2005
2005 2004
# # # #
Unaudited Unaudited Audited Audited
Fixed assets
Intangible assets 2,129,106 2,331,771
Tangible assets 98,814 106,632
-------- --------
2,227,920 2,438,403
Current assets
Stock 531,150 462,964
Debtors 706,846 403,081
Cash at bank 8,443 207,839
-------- --------
1,246,439 1,073,884
Creditors: Amounts falling
due
within one year (1,173,133) (442,538)
-------- --------
Net current assets/ 73,306 631,346
(liabilities) -------- --------
Total assets less current 2,301,226 3,069,749
liabilities
Provision for liabilities and (1,373) (2,185)
charges -------- --------
2,299,853 3,067,564
======== ========
Share capital and reserves
Called up share capital 5,073,591 4,890,341
Share premium account 1,129,421 1,108,616
Profit and loss account (3,903,159) (2,931,393)
-------- --------
Shareholders' funds 2,299,853 3,067,564
======== ========
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2005
Notes 2005 2004
# # # #
Unaudited Unaudited Audited Audited
Net cash outflow from
operating activities 4 (867,894) (761,590)
Return on investments and
servicing of financing
Interest paid (7,005) (5,917)
Interest received 1,329 7,192
-------- --------
(5,676) 1,275
Taxation recovered 36,669 27,640
Capital expenditure and
financial
Investment
Purchase of intangible fixed - (1,000)
assets
Purchase of tangible assets (20,882) (23,434)
Receipts from sales of - 3,148
tangible assets -------- --------
(20,882) (21,286)
Acquisitions and disposals
Purchase of subsidiary - (2,500,100)
undertakings
Net cash acquired with - 21,529
subsidiaries -------- --------
- (2,478,571)
-------- ---------
Cash outflow before use of
liquid
resources and financing (857,783) (3,232,532)
Financing
Issue of equity share capital 210,400 4,221,467
Cost of issue of shares (6,345) (502,089)
(Decrease)/increase in other - (209,358)
loans
Capital element of finance (3,260) (815)
lease -------- --------
Net cash inflow from 200,795 3,509,205
financing -------- ---------
Increase/(decrease) in cash 5 (656,988) 276,673
======== =========
NOTES TO THE PRELIMINARY ANNOUNCEMENT
FOR THE YEAR ENDED 30 JUNE 2005
1 Financial information
The financial information included in the above statement is an abridged version
of the Group's accounts for the period ended 30 June 2005, and does not
constitute statutory accounts within the meaning of Section 240 of the Companies
Act 1985.
The financial statements have not yet been approved by the Board and the
Auditors' Report has yet to be signed. Therefore, these financial statements
have not yet been delivered to the Registrar of Companies.
2 Taxation
There is no liability to taxation in the period due to losses incurred. The tax
credit represents research and development tax credits receivable and deferred
tax adjustments.
3 Loss per share
The calculation of the loss per share is based on the loss for the year and on
the weighted average number of ordinary shares in issue and ranking for dividend
in the period.
2005 2004
Unaudited Audited
Ordinary
Loss for the year #(971,766) #(457,559)
========= ==========
Weighted average number of shares 98,682,760 45,323,440
========= ==========
Fully diluted
Loss for the year #(971,766) #(457,559)
========= =========
Weighted average number of shares and potential
shares 98,682,760 45,323,440
========= =========
The share options in issue are not considered dilutive.
NOTES TO THE PRELIMINARY ANNOUNCEMENT
FOR THE YEAR ENDED 30 JUNE 2005
4 Reconciliation of operating loss to net cash 2005 2004
outflow from operating activities # #
Unaudited Audited
Operating loss (927,476) (498,924)
Depreciation of tangible fixed assets 28,700 23,201
Amortisation of intangible fixed assets 202,665 34,313
(Increase) in stock (68,186) (63,819)
(Increase)/decrease in debtors (340,434) (226,751)
(Decrease)/increase in creditors 236,837 (29,610)
-------- --------
Net cash outflow from operating activities (867,894) (761,590)
======== ========
5 Reconciliation of net cashflow to movement 2005 2004
in net debt # #
Unaudited Audited
Increase/(decrease) in cash (656,988) 276,673
Cash outflow/inflow from increase in debt 3,260 210,173
-------- --------
Change in net funds resulting from cash flows (653,728) 486,846
Non cash movements - (4,890)
Opening net (debt) 203,764 (278,192)
-------- --------
Closing net funds/(debt) (449,964) 203,764
======== ========
Represented by: # #
Cash at bank 8,443 207,839
Bank overdraft (457,592) -
Finance leases (815) (4,075)
-------- --------
(449,964) 203,764
======== ========
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR WUGGUGUPAGQU
Croma Grp (LSE:CMG)
Historical Stock Chart
From May 2024 to Jun 2024
Croma Grp (LSE:CMG)
Historical Stock Chart
From Jun 2023 to Jun 2024
