RNS Number:5514T
Croma Group PLC
23 March 2007
23 MARCH 2007
CROMA GROUP PLC
("Croma" or "the Group")
INTERIM RESULTS
FOR THE SIX MONTHS TO 31 DECEMBER 2006
The Board of Croma, the AIM listed surveillance security and homeland defence
products and services Group, announces financial results for the six months to
31 December 2006.
KEY POINTS
* Turnover for the six month period was #2,644,236 (2005: #908,649) - an
uplift of 191%;
* Highly successful start to the second half of the year, with contract
wins in January and February totalling #1,585,000; and
* Heightened awareness of surveillance and homeland security needs.
Commenting on today's announcement, John French, Executive Chairman of Croma,
said:
"We are obviously encouraged by the performance of the Group during the first
six months of the current year. The positive start to the second half of the
year with record orders of #1,105,000 in January and a further #480,000 in
February would indicate that this trend will continue.
"The Board has seen a very strong performance from Vigilant in terms of growth
from an expanding customer base including a recent contract win for the M.o.D.
valued at #530,000. The Board is confident of further significant contract wins
going forward. Croma Shawley, our CCTV design and development operation is also
seeing a marked improvement in trading with an order intake in January leading
to its highest monthly sales in February.
"The recent introduction of its RVS (Remote Video System) has been well
received, resulting in an order from the Safer Neighbourhood Partnership, a
joint initiative between Lincolnshire Local Authority and Humberside Police for
17 units valued at #74,000. Croma Shawley has also received orders in the last
few weeks from the Middle East valued at #94,000, for its traditional pan & tilt
CCTV unit. Croma Biometrics has made further progress with the installation of
biometric access systems in HM Prisons and a trial contract with a member of the
NHS Trust".
- ends -
Enquiries:
Croma Group plc
John French, Executive Chairman Mobile: 07836 722 482
Bishopsgate Communications Ltd. Tel: 020 7562 3350
Dominic Barretto Mobile: 07930 450 156
Jenni Herbert
Seymour Pierce Limited
Mark Percy Tel: 020 7107 8000
CHAIRMAN'S STATEMENT
I am pleased to report on a highly active period for the Group, which has seen
turnover for the six months to 31 December 2006 increase by 191%, and new
business secured in January and February of #1,585,000.
Financials
As a result of improved performance from core businesses, and recent
acquisitions, turnover for the six month period was #2,644,236 (2005:
#908,649). The loss before interest, tax, depreciation and amortization was
#278,627 compared with #169,924 the same period last year. This was due to
some variations in margins principally due to the significant increase in
turnover from Croma Vigilant which due to the nature of its business produces
lower margins, together with the cost of the investment in strengthening the
Board with the appointment of a Group Managing Director and engagement of
marketing consultants. These are both deemed as positive investments for the
future. With the ongoing improvement in the level of turnover from product
based subsidiaries in the Group, the Board expects to see the level of margin
improve during the course of the remainder of the year. The increase in
depreciation and goodwill amortization is due to the inclusion of Vigilant and
Photobase, both of which were acquired in February 2006 and therefore not
incurred in the previous year. The figures also allow for the inclusion of
Loan Note interest, again not incurred in the previous year.
The Board believes there will continue to be a steady increase in terms of
turnover, as new business prospects remain encouraging, and remain confident
for the outcome for the year.
Further investment by the Board
Shortly following the Group's full year results announcement, share purchases by
two of the Board's Directors were announced. Executive Chairman, John French,
purchased 155,000 shares at 3.15p; taking his total holding to 846,993 shares
(John French also holds stock options of 2,088,390 at 5.5p and 6,000,000 at
8.25p). Non-Executive Director, Nicholas Hewson, purchased 350,000 shares at
3p, taking his total holding to 1,374,119 shares - representing 0.93% of the
total issued share capital of the Group.
Outlook
The new business for our CCTV and biometric operations are the result of fresh
impetus into our sales and marketing programme.
The ongoing policy of the Group will be to continue to accelerate the growth of
the current business and to seek compatible acquisitions to enable it to further
consolidate its position in the sector. As announced on 15 January 2007,
discussions are ongoing with a South Wales based CCTV manufacturer and
distributor with a view to a marketing agreement and possible acquisition of
that company. The Board will make a further announcement in due course.
John French
Chairman & Chief Executive
March 2007
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006
Notes 6 Months ended 6 Months ended Year ended
31 December 31 December 30 June
2006 2005 2006
Unaudited Unaudited Audited
# # #
Turnover 2,644,236 908,649 2,817,875
Cost of Sales (1,710,663) (361,979) (1,567,741)
__________ __________ __________
Gross Profit 933,573 546,670 1,250,134
Goodwill amortisation (264,947) (101,031) (333,164)
Administrative Expenses (1,237,342) (729,605) (2,028,660)
__________ __________ __________
Operating loss 3 (568,716) (283,966) (1,111,690)
Interest receivable 673 121 920
Interest payable (27,837) (14,461) (25,016)
__________ _________ _________
Loss on ordinary
activities before
taxation (595,880) (298,306) (1,135,786)
Taxation 2 - - 45,312
_________ _________ _________
Loss after taxation and
for period (595,880) (298,306) (1,090,474)
========== ========== ==========
Loss per share 4 (0.40)p (0.31)p (1.04)p
========== ========== ==========
Fully diluted loss per
share 4 (0.40)p (0.31)p (1.04)p
========== ========== ==========
CONSOLIDATED BALANCE SHEET
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006
6 Months ended 6 Months ended Year ended
31 December 31 December 30 June
2006 2005 2006
Unaudited Unaudited Audited
# # #
Fixed assets
Intangible assets 4,684,659 2,027,774 4,949,606
Tangible assets 235,422 95,753 237,855
_________ __________ _________
4,920,081 2,123,527 5,187,461
_________ __________ _________
Current assets
Stock 581,442 572,283 540,961
Debtors 1,081,475 459,365 1,306,835
Cash 30,717 - 242,083
__________ _________ _________
1,693,634 1,031,648 2,089,879
Creditors: Amounts falling due
within one year (2,595,882) (952,456) (2,963,570)
________ _________ ________
Net current assets (902,248) 79,192 (873,691)
________ _________ _________
Total assets less current
liabilities 4,017,833 2,202,719 4,313,770
Creditors: Amounts falling due
after one year
Convertible loan notes (3,787) - (53,844)
(600,000) (250,000)
Provisions for liabilities and
charges (27414) (27,414)
________ ________ ________
3,386,632 2,202,719 3,982,512
========== ========== ==========
Share capital and reserve
Called up share capital 7,703,591 5,323,791 7,703,591
Share premium account 1,272,554 1,126,906 1,272,554
Profit and loss account (5,589,513) (4,247,978) (4,993,633)
________ ________ ________
Equity shareholders' funds 3,386,632 2,202,719 3,982,512
========== ========== ==========
This interim financial information was approved by the Board of Directors on
21st March 2007
DJ Bretel
Director
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006
Notes 6 Months ended 6 Months ended Year ended
31 December 31 December 30 June
2006 2005 2006
Unaudited Unaudited Audited
# # #
Net cash outflow from 5 (120,035) (212,933) (584,346)
Operating activities
__________ __________ __________
Return on investments
And servicing of financing
Interest received 673 121 920
Interest paid (27,837) (14,161) (25,016)
__________ __________ __________
(27,164) (14,040) (24,096)
__________ __________ __________
Taxation paid (167,294) - (128,084)
Capital expenditure and
Financial investment
Purchase of intangible - - -
fixed assets
Purchase of tangible
fixed assets (22,709) (9,950) (15,654)
Proceeds from sale of
tangible fixed assets - - 4,875
__________ __________ __________
(22,709) (9,950) (10,779)
Acquisitions and disposals __________ __________ __________
Purchase of subsidiary
undertaking - - (2,096,000)
Net cash acquired with
subsidiary - - (151,844)
__________ __________ __________
- - (2,247,844)
__________ __________ __________
Cash outflow before use (337,202) (236,923) (2,995,149)
of liquid resources and
financing
__________ __________ __________
Financing
Issue of equity share
capital - - 2,815,133
Costs of issue of equity - - -
share capital
Increase in other loans 350,000 - 231,203
Repayment of the
capital element of hire
purchase (4,123) (1,630) (9,876)
__________ __________ __________
345,877 (1,630) 3,036,460
(Decrease)/increase in cash __________ __________ __________
8,675 (238,553) 41,311
========== ========== ==========
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006
1.Financial Information
The financial information above does not constitute statutory accounts within
the meaning of Section 240 of the Companies Act 1985.
The interim financial information has not been audited.
2.Taxation
No liability to taxation arises due to the loss incurred.
3.Operating loss
6 Months ended 6 Months ended Year ended
31 December 31 December 30 June
2006 2005 2006
Unaudited Unaudited Audited
# # #
This is stated after charging:
Depreciation of tangible fixed
assets 25,142 13,011 42,968
Amortisation of intangible
fixed assets 264,947 101,031 333,164
========== ========== ==========
4.Loss per share
The loss per share is based on the loss for the period and the weighted average
number of ordinary shares in issue and ranking for dividend.
6 Months ended 6 Months ended Year ended
31 December 31 December 30 June
2006 2005 2006
Unaudited Unaudited Audited
# # #
Loss for the period (595,880) (298,306) (1,090,474)
========== ========== ==========
Weighted average number of
shares 148,226,744 96,740,874 104,997,872
========== ========== ==========
Loss per share (0.40p) (0.31p) (1.04p)
========== ========== ==========
Fully diluted loss per share (0.40p) (0.31p) (1.04p)
========== ========== ==========
The directors do not consider the share options in issue to be dilutive.
5.Reconciliation of operating loss to net cash outflow from operating activities
6 Months ended 6 Months ended Year ended
31 December 31 December 30 June
2006 2005 2006
Unaudited Unaudited Audited
# # #
Operating loss (568,716) (312,646) (1,111,690)
Loss on disposal of tangible
fixed assets - - 12,620
Depreciation of tangible fixed
assets 25,142 13,011 42,968
Amortisation of intangible
fixed assets 264,947 101,031 333,164
(Increase)/decrease in stock (40,481) (41,133) 14,126
(Increase)/decrease in debtors 225,360 (247,481) 19,721
Increase/(decrease) in
creditors (26,287) (220,677) 104,745
__________ __________ __________
Net cash outflow from operating
activities (120,035) (212,933) (584,346)
========== ========== ==========
This information is provided by RNS
The company news service from the London Stock Exchange
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