CMG Croma Grp

RNS Number:1157F
Croma Group PLC
26 June 2006

                                                                    26 JUNE 2006


                                CROMA GROUP PLC
                            ("Croma" or "the Group")

                               TRADING STATEMENT

The Board of Croma, the specialist in design, development and production of
overt and covert surveillance, security and defence related products and
services, today provides a trading update post the Company's two recent
acquisitions and its Interim Results announced on 31 March 2006.

Although the Board is pleased to report that in the current year, the Group has
already exceeded the total turnover for the year to June 2005, with a current
order book and contracts across the Group standing in excess of #2 million, it
states however that in the third quarter, ended 31 March 2006, the Group did
experience short term difficulties as a result of technical issues at its Croma
Shawley CCTV division; linked to the introduction of a new product. The strong
order book at its R&D Design avionics division meant there were delays in
recruiting additional technical staff to meet increased demand. Although the
Board is pleased to report that these issues have now been resolved, with both
operations aggressively tackling the backlog, the delays in the third quarter
will have an adverse effect on the expected full year performance of the Group.

Croma Shawley is quickly becoming a leading brand in the field of specialist
CCTV monitoring systems that incorporate the latest wireless technology. The
Company has recently achieved its first installation of a new wireless
surveillance system for a leading southern county-based Local Authority. The
Company confidently expects this to lead to further orders from the same
customer, together with the opportunity to role the system out to other local
authorities and Police Authorities. In addition, the Company recently took part
in a major international IFSEC trade exhibition at the National Exhibition
Centre in Birmingham where new products were introduced to the market and
received positive responses in terms of enquiries.

R&D Design Services has an extensive order book of approximately #1 million and
has also recently secured new contracts, including a significant new order from
a US defence related business. The Company is a leading innovator and
manufacturer of overt and covert monitoring systems in use with Government
Agencies, Police and the Military. It is involved in operations from Air Sea
Rescue to early warning systems and activities related to defence, immigration
and Customs & Excise. In essence, the system enables helicopters, fixed wing
craft and surface vessels to observe targets in adverse weather conditions such
as heavy sea mist.

Update on recent acquisitions

The two recent acquisitions have also prospered since joining the Group. Croma
Photobase, which designs, installs, services and maintains biometric
identification and access-control solutions at a wide range of locations, has
recently attracted new contracts including an installation for a leading Police
Authority and from the commercial sector. Existing customers include HM Prisons.

Croma Vigilant, a specialist company dealing with asset protection in the
industrial, commercial and public utilities market, has seen a significant
uplift in new business through contracts recently acquired since February, with
a value of #1 million on an annualised basis.

Outlook

Executive Chairman John French, together with newly appointed Group Managing
Director, Sebastian Morley, has carried out a review of the future requirements
and opportunities for the expanded Group. As a result, a number of positive
changes are taking place to both accelerate and capitalise on growth
opportunities, including the possibility of cross selling. A new sales and
marketing structure is being introduced to co-ordinate the sales effort of Croma
Photobase and Croma Shawley, where there are a number of immediate synergies in
terms of capitalising on the development of the compatible customer base.

Croma will continue to actively seek further acquisition opportunities in
pursuit of its policy of creating a Group with a fully integrated range of
products and services to meet the demands of the expanding surveillance and
security sector.


Commenting on the performance of the Group John French, Executive Chairman said:
"Whilst we are obviously disappointed at the issues that have affected our third
quarter, we are pleased to see they have been dealt with satisfactorily.

"During the current year the Group has already exceeded the total turnover for
the year to June 2005 and has a current order book and contracts across the
Group in excess of #2 million. The current structure of the Group has resulted
in it being in a strong position to capitalise going forward on the increasing
awareness and needs of the marketplace and the various aspects of surveillance
and security."

                                   ---Ends---

Enquiries:

Croma Group plc
John French, Executive Chairman                            Mobile: 07836 722 482

Bishopsgate Communications Ltd.                               Tel: 020 7430 1600
Maxine Barnes
Scott Robertson


Notes to Editors:

Listed on the AIM market of The London Stock Exchange, Croma Group plc, the 
specialists in the design, development, production and marketing of overt and  
covert surveillance and defence related products, comprises of three divisions; 
namely Croma Defence Systems Ltd, Shawley (a division of Croma Defence) and 
R&D Design Services Ltd.

On 3 February 2006, Croma acquired Vigilant Security (Scotland) Limited, a
specialist company dealing with asset protection in the industrial, commercial
and public utilities market.  On 13 February 2006, Croma acquired Photobase
Limited, a UK-based business which designs, installs, services and maintains
biometric identification and access-control solutions to meet the physical
security needs for a wide range of locations, budgets, security policies and
organization types.

These acquisitions will enable the Group to provide a more rounded security
solution, and develop a totally integrated range of products and services to
deal with the various aspects of the surveillance, security and defence related
sector.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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