TIDMCMG
RNS Number : 9044I
Croma Group PLC
22 March 2010
CROMA GROUP PLC
Unaudited interim results for the six months ended 31 December 2009
22 March, 2010
Croma Group PLC ("Croma", the "Group", or "the Company") the AIM listed asset
protection, avionics and biometrics specialist, announces its interim results
for the six months to 31 December 2009.
Highlights
+-+--------------------------------------------------------------+
| -| A further strong performance underlining the Group's |
| | continuing progress |
| | Revenues resilient at GBP3.35m (2008 - GBP3.25m) |
+-+--------------------------------------------------------------+
| -| Revenues resilient at GBP3.35m (2008 - GBP3.25m) |
+-+--------------------------------------------------------------+
| -| Significant margin improvement. Gross profit rises to |
| | GBP1.33m (2008 - GBP1.00m) |
+-+--------------------------------------------------------------+
| -| Strong cash conversion. Net cash inflow from operating |
| | activities GBP491,000 (2008 - net cash outflow GBP218,000) |
+-+--------------------------------------------------------------+
| -| Profit before tax increased to GBP209,000 (2008 - GBP17,000) |
+-+--------------------------------------------------------------+
| -| Significant new contract wins before and after the period |
| | end, worth in total approximately GBP4.5m in annual revenues |
+-+--------------------------------------------------------------+
Croma Group chief executive Sebastian Morley said: "We are very pleased with
these promising results which demonstrate that Croma is on the move,
aggressively winning business amid strong competition."
Contact details:
+---------------------------------+---------------------------------+
| Croma Group PLC | |
| Sebastian Morley, CEO | Tel: 07768 006909 |
| | |
+---------------------------------+---------------------------------+
| Brewin Dolphin: | |
| Sandy Fraser (Corporate | Tel: 0845 213 2072 |
| Finance) | |
+---------------------------------+---------------------------------+
Chairman's statement
I am pleased to be able to report that the financial results for the six months
to 31 December 2009 demonstrate further profitable trading by the Group, despite
the continuing effect of the global economic crisis.
During the six months Group turnover grew to GBP3.35m (2008: GBP3.25m), without
any sacrifice of margin, with the result that the gross profit for the period
grew significantly from GBP1.00m to GBP1.33m. The Group maintained tight
control of costs, resulting in an uplift in profit before tax to GBP208,793,
against GBP16,876 in the same period a year earlier. Cash conversion was also
strong with a positive swing in operating cashflow in excess of GBP700,000
compared with the same period last year (net cash inflow GBP492,000; 2008, net
cash outflow GBP218,000).
The Group's avionics and asset protection subsidiaries have performed
particularly well, with new contract awards announced during the period and
since the period end worth approximately GBP4.5m in annual sales revenue in
aggregate. One of these contracts, announced only last week, is the largest the
Group has won to date at GBP3.4m annually and, because of the timing of this
contract award, its impact will be more fully reflected in next year's financial
results. Importantly, the new contracts include the provision of manned guarding
services for high profile buildings in both London and Edinburgh, which raises
the profile of the Group within its industry, and which we expect will lead to
further success at tender. Biometrics has also continued to be profitable and
has a good pipeline of current bidding opportunities.
The prospects for the Group are therefore very encouraging and I hope to be able
to report further significant progress in the second half of the year to 30th
June 2010. I would like to thank the Directors and staff of the Group for their
continued efforts to deliver such impressive results in a tough economic
climate, and to congratulate them on their success in securing the recent
contract wins in the teeth of strong competition.
Nicholas Hewson
Non-executive Chairman
19 March 2010
CROMA GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
+------------------------------+-+--------------+-------------+-------------+
| | | 6 Months | 6 Months | Year |
| | | ended | ended | ended |
| | | 31 | 31 | 30 June |
| | | December | December | 2009 |
| | | 2009 | 2008 | Note 1 |
| | | Unaudited | Unaudited | |
| | | | | GBP |
| | | GBP | GBP | |
+------------------------------+-+--------------+-------------+-------------+
| | | | | |
+------------------------------+-+--------------+-------------+-------------+
| Revenue | | 3,347,422 | 3,253,174 | 6,519,436 |
+------------------------------+-+--------------+-------------+-------------+
| Cost of Sales | | (2,021,447) | (2,248,521) | (4,566,041) |
+------------------------------+-+--------------+-------------+-------------+
| | | __________ | __________ | __________ |
+------------------------------+-+--------------+-------------+-------------+
| Gross profit | | 1,325,975 | 1,004,653 | 1,953,395 |
+------------------------------+-+--------------+-------------+-------------+
| | | | | |
+------------------------------+-+--------------+-------------+-------------+
| Administrative expenses | | ( 990,052) | (920,328) | (1,706,498) |
+------------------------------+-+--------------+-------------+-------------+
| | | __________ | __________ | __________ |
+------------------------------+-+--------------+-------------+-------------+
| | | | | |
+------------------------------+-+--------------+-------------+-------------+
| Profit from operations | | 335,923 | 84,325 | 246,897 |
+------------------------------+-+--------------+-------------+-------------+
| Financial income | | - | 1,044 | 2,231 |
+------------------------------+-+--------------+-------------+-------------+
| Financial expense | | (127,130) | (68,493) | (237,417) |
+------------------------------+-+--------------+-------------+-------------+
| | | __________ | _________ | _________ |
+------------------------------+-+--------------+-------------+-------------+
| Profit before tax | | 208,793 | 16,876 | 11,711 |
+------------------------------+-+--------------+-------------+-------------+
| Tax credit | | - | - | 41,191 |
+------------------------------+-+--------------+-------------+-------------+
| | | | | |
+------------------------------+-+--------------+-------------+-------------+
| Profit from continuing | | 208,793 | 16,876 | 52,902 |
| operations | | | | |
+------------------------------+-+--------------+-------------+-------------+
| | | _________ | _________ | _________ |
+------------------------------+-+--------------+-------------+-------------+
| Profit and total | | 208,793 | 16,876 | 52,902 |
| comprehensive income for the | | | | |
| six month period | | | | |
+------------------------------+-+--------------+-------------+-------------+
| | | ========= | ========= | ========= |
+------------------------------+-+--------------+-------------+-------------+
| Profit per share - undiluted | 0.11p | 0.01p | 0.03p |
| | | | |
+--------------------------------+--------------+-------------+-------------+
| Profit per share - diluted | 0.11p | 0.01p | 0.03p |
+------------------------------+-+--------------+-------------+-------------+
CROMA GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2009
+---------------------------------+--------------+--------------+-------------+
| | | | |
| | 31 | 31 December | 30 June |
| | December | 2008 | 2009 |
| | 2009 | Unaudited | Note 1 |
| | Unaudited | GBP | GBP |
| | GBP | | |
+---------------------------------+--------------+--------------+-------------+
| Assets | | | |
+---------------------------------+--------------+--------------+-------------+
| Non-current assets | | | |
+---------------------------------+--------------+--------------+-------------+
| Goodwill | 2,148,650 | 2,148,650 | 2,148,650 |
+---------------------------------+--------------+--------------+-------------+
| Property, plant and equipment | 162,919 | 239,940 | 180,653 |
+---------------------------------+--------------+--------------+-------------+
| | _________ | __________ | _________ |
+---------------------------------+--------------+--------------+-------------+
| | 2,311,569 | 2,388,590 | 2,329,303 |
+---------------------------------+--------------+--------------+-------------+
| | _________ | __________ | _________ |
+---------------------------------+--------------+--------------+-------------+
| Current assets | | | |
+---------------------------------+--------------+--------------+-------------+
| Inventories | 244,408 | 347,114 | 282,035 |
+---------------------------------+--------------+--------------+-------------+
| Trade and other receivables | 1,527,357 | 1,354,276 | 1,720,618 |
+---------------------------------+--------------+--------------+-------------+
| Cash | 114,743 | 3,606 | 3,674 |
+---------------------------------+--------------+--------------+-------------+
| | __________ | _________ | _________ |
+---------------------------------+--------------+--------------+-------------+
| Total current assets | 1,886,508 | 1,704,996 | 2,006,327 |
+---------------------------------+--------------+--------------+-------------+
| | __________ | _________ | _________ |
+---------------------------------+--------------+--------------+-------------+
| Total assets | 4,188,077 | 4,093,586 | 4,335,630 |
+---------------------------------+--------------+--------------+-------------+
| | ============ | =========== | ========== |
+---------------------------------+--------------+--------------+-------------+
| Liabilities | | | |
+---------------------------------+--------------+--------------+-------------+
| Non-current liabilities | | | |
+---------------------------------+--------------+--------------+-------------+
| Long term borrowings | (1,346,802) | (1,301,246) | (1,339,120) |
+---------------------------------+--------------+--------------+-------------+
| Provisions | (15,000) | - | (15,000) |
+---------------------------------+--------------+--------------+-------------+
| Deferred tax | (2,828) | (2,828) | (2,828) |
+---------------------------------+--------------+--------------+-------------+
| | __________ | _________ | _________ |
+---------------------------------+--------------+--------------+-------------+
| Total non current liabilities | (1,364,630) | (1,304,074) | (1,356,948) |
+---------------------------------+--------------+--------------+-------------+
| | | | |
+---------------------------------+--------------+--------------+-------------+
| Current liabilities | | | |
+---------------------------------+--------------+--------------+-------------+
| Trade and other payables | (262,396) | (291,318) | (353,926) |
+---------------------------------+--------------+--------------+-------------+
| Tax | (343,727) | (261,271) | (241,325) |
+---------------------------------+--------------+--------------+-------------+
| Accruals and deferred income | (222,342) | (221,660) | (358,660) |
+---------------------------------+--------------+--------------+-------------+
| Bank overdrafts and loans | (173,724) | (512,979) | (561,383) |
+---------------------------------+--------------+--------------+-------------+
| | __________ | _________ | ________ |
+---------------------------------+--------------+--------------+-------------+
| Total current liabilities | (1,002,189) | (1,287,228) | (1,515,294) |
+---------------------------------+--------------+--------------+-------------+
| | __________ | _________ | _________ |
+---------------------------------+--------------+--------------+-------------+
| Total liabilities | (2,366,819) | (2,591,302) | (2,872,242) |
+---------------------------------+--------------+--------------+-------------+
| | ============ | =========== | ========== |
+---------------------------------+--------------+--------------+-------------+
| Total net assets | 1,831,258 | 1,502,284 | 1,463,388 |
+---------------------------------+--------------+--------------+-------------+
| | ============ | =========== | ========== |
+---------------------------------+--------------+--------------+-------------+
| Issued capital and reserves | | | |
| attributable to owners of the | | | |
| parent | | | |
+---------------------------------+--------------+--------------+-------------+
| Share capital | 185,338 | 9,161,453 | 177,384 |
+---------------------------------+--------------+--------------+-------------+
| Share premium reserve | 151,123 | 1,388,522 | - |
+---------------------------------+--------------+--------------+-------------+
| Other reserves | 438,730 | 513,653 | 438,730 |
+---------------------------------+--------------+--------------+-------------+
| Retained earnings | 1,056,067 | (9,561,344) | 847,274 |
+---------------------------------+--------------+--------------+-------------+
| | __________ | _________ | _________ |
+---------------------------------+--------------+--------------+-------------+
| | 1,831,258 | 1,502,284 | 1,463,388 |
+---------------------------------+--------------+--------------+-------------+
| | ============ | =========== | =========== |
+---------------------------------+--------------+--------------+-------------+
This interim financial information was approved by the Board of Directors on
19th March 2010
G M McGill
Director
CROMA GROUP PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
+--------------------------------+------------+------------+------------+
| | 6 Months | 6 Months | Year |
| | ended | ended | ended |
| | 31 | 31 | 30 June |
| | December | December | 2009 |
| | 2009 | 2008 | Note 1 |
| | Unaudited | Unaudited | |
| | | | GBP |
| | GBP | GBP | |
+--------------------------------+------------+------------+------------+
| | | | |
+--------------------------------+------------+------------+------------+
| Cash flows from operating | | | |
| activities | | | |
+--------------------------------+------------+------------+------------+
| Profit for the six month | 208,793 | 16,876 | 11,711 |
| period | | | |
+--------------------------------+------------+------------+------------+
| Adjustments for: | | | |
+--------------------------------+------------+------------+------------+
| Depreciation of property, | 21,028 | 18,119 | 44,499 |
| plant and equipment | | | |
+--------------------------------+------------+------------+------------+
| Onerous lease provision | - | - | 15,000 |
+--------------------------------+------------+------------+------------+
| Loss on sale of property, | - | - | 8,077 |
| plant and equipment | | | |
+--------------------------------+------------+------------+------------+
| Share based payment expense | 29,077 | 21,381 | (53,452) |
+--------------------------------+------------+------------+------------+
| Financial income | - | (1,044) | (2,231) |
+--------------------------------+------------+------------+------------+
| Financial expense | 127,130 | 68,493 | 237,417 |
+--------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
+--------------------------------+------------+------------+------------+
| | 386,028 | 123,825 | 261,021 |
+--------------------------------+------------+------------+------------+
| (Increase)/Decrease in | 37,627 | (47,795) | 17,284 |
| inventories | | | |
+--------------------------------+------------+------------+------------+
| (Increase)/Decrease in trade | 193,261 | 130,128 | (236,215) |
| and other receivables | | | |
+--------------------------------+------------+------------+------------+
| (Decrease)/Increase in trade | (125,446) | (424,378) | (191,187) |
| and other payables | | | |
+--------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
+--------------------------------+------------+------------+------------+
| Cash generated from operations | 491,470 | (218,220) | (149,097) |
+--------------------------------+------------+------------+------------+
| Income taxes paid | - | - | 28,603 |
+--------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
+--------------------------------+------------+------------+------------+
| Net cash flows from operating | 491,470 | (218,220) | (120,494) |
| activities | | | |
+--------------------------------+------------+------------+------------+
| | | | |
+--------------------------------+------------+------------+------------+
| Investing activities | | | |
+--------------------------------+------------+------------+------------+
| Purchases of property, plant | (3,294) | (23,192) | (52,817) |
| and equipment | | | |
+--------------------------------+------------+------------+------------+
| Proceeds on disposal of | - | - | 54,148 |
| property, plant and equipment | | | |
+--------------------------------+------------+------------+------------+
| Interest received | - | 1,044 | 2,231 |
+--------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
+--------------------------------+------------+------------+------------+
| Net cash used in investing | (3,294) | (22,148) | 3,562 |
| activities | | | |
+--------------------------------+------------+------------+------------+
| Financing activities | | | |
+--------------------------------+------------+------------+------------+
| Issue of non convertible loan | - | - | 150,000 |
| notes | | | |
+--------------------------------+------------+------------+------------+
| Repayment of borrowings | (150,000) | - | (40,722) |
+--------------------------------+------------+------------+------------+
| Issue of ordinary shares | 130,000 | - | - |
+--------------------------------+------------+------------+------------+
| Interest paid on convertible | (80,870) | (41,950) | (161,305) |
| loan notes | | | |
+--------------------------------+------------+------------+------------+
| Interest paid on non | (38,578) | (21,145) | (32,840) |
| convertible loan notes | | | |
+--------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
+--------------------------------+------------+------------+------------+
| Net cash from financing | (139,448) | (63,095) | (84,867) |
| activities | | | |
+--------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
+--------------------------------+------------+------------+------------+
| Net (decrease)/increase in | 348,728 | | |
| cash and cash equivalents | | (303,463) | (201,799) |
+--------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
+--------------------------------+------------+------------+------------+
| Cash and cash equivalents at | (407,709) | (205,910) | (205,910) |
| beginning of period | | | |
+--------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
+--------------------------------+------------+------------+------------+
| Cash and cash equivalents at | (58,981) | (509,373) | (407,709) |
| end of period | | | |
+--------------------------------+------------+------------+------------+
| | ========== | ========== | ========== |
+--------------------------------+------------+------------+------------+
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
1. Accounting policies
The financial information in the half yearly report has been prepared using the
recognition and measurement principles of International Accounting Standards,
International Financial Reporting Standards and Interpretations adopted for use
in the European Union (collectively Adopted IFRSs). The principle accounting
policies used in preparing the half yearly report are those the group expects to
apply in its financial statements for the year ended 30 June 2010. The
principle accounting policies in this half yearly report are unchanged from
those applied in the 2009 financial statements apart from the adoption of IAS 1
(Revised). The financial information for the six months ended 31 December 2009
and the six months ended 31 December 2008 is unaudited and does not constitute
the group's statutory financial statements for those periods. The comparative
financial information for the full year ended 30 June 2009 was derived from
audited statutory financial statements and was originally published in
compliance with IAS 1. It has been restated here to be in compliance with IAS 1
(Revised). This effects presentation only. A copy of these statutory financial
statements has been delivered to the Registrar of Companies. The auditors'
report on these accounts was unqualified, did not include references to any
matters to which the auditors drew attention by way of emphasis without
qualifying their report and did not contain a statement under sections 498(2)
and 498(3) of the Companies Act 2006.
While the financial information included in this half yearly report is
consistent with the recognition and measurement principles of adopted IFRS, it
does not comply with the requirements of IAS34 Interim Financial Reporting.
2. Taxation
Taxation has been provided for at 28% (2008: 28%) although no taxation has been
charged due to the availability of tax losses brought forward.
3. 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 | 6 Months | Year |
| | ended | ended | ended |
| | 31 | 31 | 30 June |
| | December | December | 2009 |
| | 2009 | 2008 | |
| | | | GBP |
| | GBP | GBP | |
+--------------------------+-------------+-------------+-------------+
| Profit for the period | 208,793 | 16,876 | 52,902 |
+--------------------------+-------------+-------------+-------------+
| | ========== | ========== | ========== |
+--------------------------+-------------+-------------+-------------+
| Weighted average number | 185,338,000 | 177,383,964 | 177,383,964 |
| of shares | | | |
+--------------------------+-------------+-------------+-------------+
| | ========== | ========== | ========== |
+--------------------------+-------------+-------------+-------------+
| Profit per share | 0.11p | 0.01p | 0.03p |
+--------------------------+-------------+-------------+-------------+
| | ========== | ========== | ========== |
+--------------------------+-------------+-------------+-------------+
| Fully diluted profit per | 0.11p | 0.01p | 0.03p |
| share | | | |
+--------------------------+-------------+-------------+-------------+
| | ========== | ========== | ========== |
+--------------------------+-------------+-------------+-------------+
4. Cash and cash equivalents
+--------------------------+------------+------------+------------+
| | 6 Months | 6 Months | Year |
| | ended | ended | ended |
| | 31 | 31 | 30 June |
| | December | December | 2009 |
| | 2009 | 2008 | |
| | | | GBP |
| | GBP | GBP | |
+--------------------------+------------+------------+------------+
| Cash at bank and in hand | 114,743 | 3,606 | 3,674 |
+--------------------------+------------+------------+------------+
| | ========== | ========== | ========== |
+--------------------------+------------+------------+------------+
| Invoice discounting | (173,724) | (477,033) | (336,634) |
+--------------------------+------------+------------+------------+
| | ========== | ========== | ========== |
+--------------------------+------------+------------+------------+
| Bank overdraft | - | (35,946) | (74,749) |
+--------------------------+------------+------------+------------+
| | ========== | ========== | ========== |
+--------------------------+------------+------------+------------+
5. Financial information
The Board of Directors approved the interim report on 19th March 2010. The
financial information in respect of the six months to 31 December 2009 has
neither been audited nor reviewed pursuant to guidance issued by the Auditing
Practices Board. A copy of this report can be obtained from our registered
office at Emerald House, East Street, Epsom, Surrey, KT17 1HS or is available on
our website at www.cromagroup.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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