CMG Croma Grp

RNS Number:5252Z
Croma Group PLC
03 July 2007



                                                                     3 JULY 2007


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


               PLACING AND LOAN NOTE CONVERSION TO RAISE #751,263
                      DIRECTOR DEALING, TRADING UPDATE AND
                                 BOARD CHANGES

The Board of Croma, the AIM listed surveillance security and homeland defence
specialist, is pleased to announce that it has raised #751,263 through a Placing
of 10,000,000 new Ordinary Shares of 5p each at a Placing price of 5p with
existing institutional shareholders and certain Directors ("the Placing") and
the conversion by Sebastian Morley, an Executive Director, of a #251,623
convertible loan note in connection with the final instalment for the purchase
of his company Vigilant Security (Scotland) Limited, to provide the Company with
additional working capital to fund organic growth opportunities.


As part of the Placing, Nick Hewson, Non-Executive Director, subscribed for
1,000,000 new Ordinary Shares, and Sebastian Morley subscribed for 1,000,000 new
Ordinary Shares in addition to his Loan Note conversion.  Nick Hewson now holds
2,374,119 ordinary shares representing approximately 1.4 per cent. of the
enlarged issued share capital of the Company and Sebastian Morley and his wife
now holds 14,844,691 ordinary shares representing approximately 8.6 per cent. of
the enlarged issued share capital of the Company.


These share purchases bring the total number of shares held by the Board to
17,981,842 representing 10.52 per cent. of the total issued share capital of the
Group.


Trading Update

The Board anticipates that although turnover will be in excess of #5.5 million
(2006: #2.8 million), turnover and profits for the year ended 30 June 2007 will
be below market expectations.


The reasons behind the shortfall are principally due to deferred orders not
falling within the current year. The Board however reaffirms that all of Croma's
operating subsidiaries continue to show an improving performance, as highlighted
at the time of the Group's Interim Results, with a current order book totaling
#2.98 million.

Board Changes

Following the recent statement by the Group, where it announced that upon the
appointment of a suitable replacement, David Bretel is to stand down as Finance
Director and Company Secretary of the Group to take up a senior appointment as
Managing Director of Croma Defence Systems Limited incorporating Croma Shawley,
the Company announces that Sebastian Morley has assumed the role as CEO of the
Group.  John French will assume the role of Non-Executive Chairman of the Group,
working closely with the Board on the development of the activities of Croma
from a corporate development standpoint.


The Group also announces that Keith Wheeler, the Group's Marketing Services
Director, has stepped down from the Board but will however continue in a
consultancy role, advising the subsidiary companies.


In the opinion of the Board, the operational reorganisation within the Group is
expected to provide opportunities to reduce operating costs moving forward.


Commenting, John French said: "I have long expressed the desire to split out my
dual role as both Chairman and CEO of the Group. I am delighted that Sebastian
has accepted his new appointment. His complementary military background and
successful track record positions him well for the role, and I look ahead to
driving the Group forward with him at the commercial helm.


"It is highly encouraging to see two of the Group's key Institutional
Shareholders subscribing for new shares. This adds to the further investment
made by our two Board members.  All of Croma's operating subsidiaries continue
to show an improving performance, as highlighted at the time of the Group's
Interim Results.

"Furthermore, the heightened awareness of the surveillance and homeland security
markets supports Croma's vision for the future. There has never been a more
appropriate time for a business of Croma's nature in the market, and the Board
will continue to look at every possible opportunity to grow value for all
shareholders going forward.


"I'd also like to thank Keith today for all of his work to date, and delighted
he will remain working alongside the Group in a consultancy role."


AIM Application

Application has been made for the admission of the 15,025,260 new Ordinary
Shares to trading on the AIM market.  The new Ordinary Shares will rank pari
passu with the existing ordinary shares in the Company and admission of the
15,025,260 new ordinary shares is expected to take place on Friday 6 July 2007.


Total Voting Rights

For the purposes of the Financial Services Authority's Disclosure and
Transparency Rules, the Company's total issued share capital at the date of this
notice is 170,983,173.


The Company's issued share capital consists of 170,983,173 ordinary shares of 5p
each, with one voting right per share. The Company holds no ordinary shares in
Treasury.


Therefore, the total number of voting rights in Croma is 170,983,173.


The above figure may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to notify their
interest in, or a change to their interest in, Croma under the FSA's Disclosure
and Transparency Rules.


                                   ---ends---


Enquiries:

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

Bishopsgate Communications Ltd.                        Tel: 020 7562 3350
Dominic Barretto                                       Mobile: 07930 450 156
Jenni Herbert

Seymour Pierce Limited                                 Tel: 020 7107 8000
Mark Percy


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