RNS Number:9899Q
Croma Group PLC
28 March 2008
Croma Group PLC
Interim Results for the six months to 3l December 2007
Croma Group PLC ("Croma", the "Group", or "the Company") the AIM listed homeland
security specialist, announces its interim results for the six months to 31
December 2007.
Highlights
*Turnover up 41% at �3.32m (2006 - �2.36m)
*Profit before tax of �275,156 (2006: loss �384,380)
*Continued profitability maintained in 2008
*Important and strategic new contracts won after the period end
Chairman's Statement
This is my first opportunity to report to shareholders in my new capacity as
non-executive chairman and I am very pleased to be able to report the Group's
first ever trading profit in the six months to 31 December 2007.
Following decisive action over the last year by the Board (including placing an
unprofitable and cash hungry subsidiary into liquidation), the Group now has
three profitable subsidiaries operating generally in the field of homeland
security and related businesses, including the provision of access control
software to a number of HM Government Agencies and the supply of enhanced visual
imaging software to global defence industries.
The results of the Group reflect this activity. During the six months the
turnover of the Group grew 41% to �3.32m (2006: �2.36m) and profit before tax
was a respectable �275,156, a significant improvement over last year's loss of
�384,380 (as restated for IFRS adjustments). Included in the profit in the
period is a credit of �97,044 on discontinued activities. The Board confidently
expects this growth to be sustained as these businesses develop and strengthen
their customer contacts in these growth markets.
I am also delighted to be able to report that the new Chief Executive of the
Group, Sebastian Morley, has made some key new appointments, including a new
Group Finance Director in Gerald McGill and a new divisional Managing Director.
Sebastian comments on the businesses in more detail below.
The new management team has progressed well with the consolidation process and
the Group has won some profitable and strategically important new contracts. In
the meantime the central cost base of the Group has been drastically pruned to
the level where it can maintain an efficiently run business and still obtain
value for money.
The Board confidently expects to be able to report continued growth from new and
repeat business in the second half of the year.
Nicholas Hewson
Non-executive Chairman
28th March 2008
Chief Executive's Statement
Introduction
I am very pleased to report an excellent first half of the Group's trading year
which has seen it strengthen its position in the sectors in which it operates.
Vigilant Security continues to grow at a rapid rate with turnover growing by 40%
to �2,029,468, profit before taxation up to �88,259 from �45,151 in the
comparative six month period to 31st December 2006. The growth has come from new
contract wins along with new business roll out from existing clients.
Research and Development Designs Services Ltd has seen turnover grow by 64%
compared to the comparative period to �910,186. The company recorded a profit
before taxation of �146,391 in the period compared to a loss in the equivalent
period last year of �77,239.
Photobase Limited has recorded an increase in turnover by 6% to �378,360, and a
profit before taxation of �20,000 compared to a loss in the comparative period
of �40,683.
Group costs are being reduced so as to maintain a leaner, fitter group going
forward.
Impact of the adoption of International Financial Reporting Standards ("IFRS")
The financial information shown in this interim report is presented in
accordance with IFRS. The comparative information for the six months to 31
December 2006 and the year to 30 June 2007 have been restated under these
standards. The Group's website contains the detail of these reconciliations.
The only impact on the Balance Sheet and Income Statement has been the adoption
of IAS 36 'Impairment of Assets'. This has not impacted on either the profit in
the 6 month period to 31 December 2007 or the net assets at that date. There is
no difference in Group net assets under IFRS and UK GAAP at 31st December 2007
as the impairment review and associated charge in the period to 30th June 2007
aligns the carrying value of the goodwill under UK GAAP and IFRS. However, the
adoption of IAS36 has had an impact on the net assets at 1st July 2006, 31st
December 2006 and on losses incurred in the period to 31st December 2006.
The impact of the adoption of IAS 36 is set out below:
Balance Sheet implication of As stated Effect of As restated
impact of IAS 36 under UK IAS36 under IFRS
GAAP
Net Assets at 1 July
2006 �4,017,812 �697,226 �4,715,038
Net Assets at 31
December 2006 �3,471,352 �962,173 �4,433,525
Net Assets at 30 June
2007 �1,283,786 - �1,283,786
Income Statement implication of
impact of IAS 36
Loss in 6 month period to 31st
December 2006 (�649,327) �264,947 (�384,380)
Loss in period to 30th June 2007 (�3,819,595) (�697,226) (�4,516,821)
Outlook
The new board of directors have made considerable progress and while there is
much still to be done, the strong results in the six months to 31 December 2007
will provide the Group with a platform to continue to grow the business and
improve profitability. I believe that the Group is well placed to exceed market
expectations for the year.
Sebastian Morley,
Chief Executive
28th March 2008
CROMA GROUP PLC
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
6 Months ended 6 Months ended Year ended
31 December 31 December 30 June
2007 2006 2007
Unaudited Unaudited Unaudited
� � �
Revenue 3,318,014 2,356,358 5,052,508
Cost of Sales (2,006,771) (1,497,287) (3,512,227)
__________ __________ __________
Gross Profit 1,311,243 859,071 1,540,281
Operating Expenses
-Goodwill impairment - - (2,792,693)
-Other operating expenses (1,076,873) (1,154,182) (2,537,705)
__________ __________ __________
Profit/(Loss) from
operations 234,370 (295,111) (3,790,117)
Financial income 1,423 673 1,505
Financial expenses (57,681) (26,291) (90,397)
__________ _________ _________
Profit/(Loss) before
taxation 178,112 (320,729) (3,879,009)
Taxation - - -
Profit/(Loss) for period 178,112 (320,729) (3,879,009)
Profit/(Loss) from
discontinued operations 97,044 (63,651) (637,812)
_________ _________ _________
Profit / (Loss) attributable
to equity shareholders 275,156 (384,380) (4,516,821)
========= ========= =========
Profit/(Loss) per share -
undiluted 0.17p (0.26p) (3.01p)
Profit/(Loss) per share -
diluted 0.15p (0.26p) (3.01p)
CROMA GROUP PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2007
31 December 31 December 30 June
2007 2006 2007
Unaudited Unaudited Unaudited
� � �
Non-current assets
Goodwill 2,594,136 5,646,832 2,594,136
Property, plant and equipment 200,619 235,422 191,109
_________ __________ _________
2,794,755 5,882,254 2,785,245
_________ __________ _________
Current assets
Inventories 253,558 581,442 311,212
Trade and other receivables 1,507,942 1,081,475 1,427,328
Cash 145,681 30,717 131,792
__________ _________ _________
1,907,181 1,693,634 1,870,332
Current liabilities
Trade and other payables (1,251,908) (2,516,690) (1,750,184)
Bank loans and overdrafts (561,842) (79,192) (482,329)
_________ _________ _________
Net current assets/(liabilities) 93,431 (902,248) (362,181)
________ _________ _________
Total assets less current
liabilities 2,888,186 4,980,006 2,423,064
Non-current liabilities
Long term borrowings (42,217) (3,787) (45,373)
Loan Notes (1,186,544) (515,280) (1,091,077)
Deferred tax (2,828) (27,414) (2,828)
________ ________ ________
1,656,597 4,433,525 1,283,786
========= ========= =========
Equity
Share capital 9,829,935 8,976,145 9,829,935
Other reserves 460,636 234,069 362,981
Retained earnings (8,633,974) (4,776,689) (8,909,130)
________ ________ ________
1,656,597 4,433,525 1,283,786
========== ========== =========
This interim financial information was approved by the Board of Directors on
28th March 2008
G M McGill
Director
CROMA GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
6 Months 6 Months Year
ended ended ended
31 December 31 December 30 June
2007 2006 2007
Unaudited Unaudited Unaudited
� � �
Cashflow from operating
activities
Profit/(Loss) before taxation 275,156 (384,380) (4,516,821)
Adjustments for:
Depreciation 13,259 25,143 76,827
Impairment of Goodwill - - 2,792,693
FRS20 charge 73,122 53,447 106,893
Interest received (1,423) (673) (1,655)
Interest expense 57,681 27,837 97,815
(Increase)/Decrease in
inventories 57,657 (40,481) 229,749
(Increase)/Decrease in trade
and other receivables (80,614) 225,360 (120,493)
(Decrease)/Increase in trade
and other payables (498,276) 64,378 845,182
__________ __________ __________
Cash generated from operations (103,438) (29,369) (489,810)
Tax paid - (167,294) (222,021)
__________ __________ __________
Net cash from operating
activities (103,438) (196,666) (711,831)
Cash Flows from investing
activities
Purchase of property, plant and
equipment (22,772) (23,227) (35,990)
Proceeds on disposal of
property, plant and equipment - - 5,909
Interest received 1,423 673 1,655
__________ __________ __________
Net cash from investing
activities (21,349) (22,554) (28,426)
Cash flows from financing
activities
Interest paid (57,681) (27,837) (97,815)
Issue of Loan Notes 120,000 562,754 750,000
Repayment of borrowings (3,156) (1,630) 77
Issue of Share Capital - - 100,000
__________ __________ __________
Net cash from financing
activities 59,163 533,287 752,262
__________ __________ __________
Net (decrease)/increase in cash
and cash equivalents (65,624) 314,067 12,005
__________ __________ __________
Cash and cash equivalents at
beginning of period (350,537) (362,542) (362,542)
__________ __________ __________
Cash and cash equivalents at
end of period (416,161) (48,475) (350,537)
========== ========== ==========
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
1. Financial Information
Croma Group PLC has adopted International Financial Reporting Standards ("IFRS")
as adopted by the European Union with effect from 1st January 2006. The Group
will apply IFRS in its consolidated financial statements for the year ended 20th
June 2008. Therefore, these interim financial statements for the 6 months to
31st December 2007 are prepared using accounting policies in accordance with
IFRS and International Financial reporting Committee ("IFRIC") interpretations
that are expected to be applicable to the consolidated financial statements for
the year ended 20th June 2008. These standards remain subject to ongoing
amendment and/or interpretation and are therefore still subject to change.
Accordingly, information contained in these interim financial statements may
need updating for subsequent amendments to IFRS required for first time adoption
or for new standards issued post the balance sheet date.
The basis of preparation and accounting policies followed in this interim report
differ from those set out in the Annual Report and Accounts for the year ended
30th June 2007 which where prepared in Accordance with United Kingdom accounting
standards (UK GAAP). As permitted, this interim report has not been prepared in
accordance with IAS 34 "Interim Financial reporting".
The interim financial statements do not constitute statutory accounts as defined
by Section 240 of the Companies Act 1985.
The financial information for the year to 30th June 2007 has been extracted from
the statutory accounts for the Group for that period now amended to conform with
the IFRS accounting policies expected to be applied in the consolidated
financial statements for the year ended 30th June 2008. These published accounts
in a form consistent with UK GAAP were reported on by the auditors without
qualification or an emphasis matter reference and did not include a statement
under section 237(2) or (3) of the Companies Act 1985 and have been delivered to
the Registrar of Companies.
A detailed explanation of the transition from UK GAAP to IFRS is contained on
the Company's website.
2. Earnings per share
The earnings per share is based on the profit/(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
2007 2006 2007
Unaudited Unaudited Unaudited
� � �
Profit/(Loss) for the period 275,156 (384,380) (4,516,821)
========== ========== ==========
Weighted average number of
shares 162,983,164 148,226,744 150,111,909
========== ========== ==========
Profit/(Loss) per share 0.17p (0.26p) (3.01p)
========== ========== ==========
Fully diluted profit/(loss)
per share 0.15p (0.26p) (3.01p)
========== ========== ==========
Enquiries:
Croma Group plc
Sebastian Morley, Chief Executive 07768 006 909
Seymour Pierce Limited
Mark Percy / Jeremy Garrett-Cox 020 7107 8000
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR JRMJTMMJTTAP
Croma Grp (LSE:CMG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Croma Grp (LSE:CMG)
Historical Stock Chart
From Jul 2023 to Jul 2024
