Immediate release: 31 March 2004
Croma Group Plc
("Croma" or the "Group")
INTERIM RESULTS
HALF YEAR TO 31 DECEMBER 2003
HIGHLIGHTS
* Successful move from OFEX to AIM in December 2003
* �2 million approx. of new funds raised in pre-IPO and IPO fundraisings
* Croma is now debt free and with cash for working capital
* Proposed acquisition of R&D Design Services Limited - conditional contract
signed subject to EGM on 15 April 2004
* Croma Defence Systems Limited acquisition of Shawley in March 2004
* Rapid acceleration of the sales and marketing division
* Own products reaching new markets and being purchased on a trial basis
* New products under development
CHAIRMAN'S STATEMENT
I report to you the financial results of the Group for the six months to
December 2003, a period in which a number of significant events towards the
shaping of the Group's future have occurred. This culminated in Croma's move to
trading on the AIM market, having been previously listedon OFEX. This move,
combined with a related fund raising, is an extremely positive step for Croma
for a number of reasons: A listing on AIM provides a platform from which to
make complimentary acquisitions to capitalise on consolidation opportunities
within the industry in which we operate. Furthermore, the funds raised have
enabled us to rapidly accelerate our sales and marketing activities. I am
delighted to report that, since the period under review, a number of successful
overseas trips have taken place, through our subsidiary Croma Defence Systems
Limited, resulting in orders being placed for trials of a number of Croma's
products. It is, in my opinion, testimony to the perceived strength and
potential of Croma Group Plc that such high profileinstitutional investors as
ISIS and Gartmore have backed the December fundraising. I am delighted to
welcome all the new shareholders to the Group and wish to assure shareholders,
old and new, that your board remains focussed on increasing the value ofour
Group.
During the six months to 31 December 2003, Croma continued to complete the
design of a number of existing products, in particular the Zeus Tactical Light,
and expanded its list of factored products. Good progress was made in both
these areas. With the funds from the December placing, progress has accelerated
rapidly since the period end.
In the months following the period end Croma has made exciting progress in a
number of areas, most significantly, the proposed acquisition of R&D Design
Services Limited for an initial consideration of �2,500,000. The deal, which is
subject to shareholder approval, also provides for the payment of deferred
consideration equal to four-times the uplift in profit for the two years ended
31 January 2006 with an overall cap of �4,000,000 of consideration payable in
aggregate, including the initial consideration. R&D Design Services Limited
designs, assembles and markets monitors for the airborne, sea borne and ground
surveillance markets. Its technology, in effect, enables craft to have the
ability to see through adverse weather conditions such as fog and mist.
Appliances include, among others, Air-Sea Rescue, Airborne Early Warning and
customs and immigration.
R&D Design Services Limited is an established business with a significant
client base consisting of government agencies, military organisations and
commercial operators on a global basis. The deal will provide the enlarged
group with opportunities for cross referrals in a number of areas including
technology, distribution and clients. I have no doubt that this deal will
advance the Croma profile and prospects within its marketplace worldwide.
Croma is actively seeking further such significant deals within the sector as
the Group recognises the opportunities that exist with smaller complimentary
acquisitions. With this in mind, Croma Defence Systems Limited, a wholly owned
subsidiary of the Group, acquired Shawley, manufacturer of surveillance and
monitoring equipment. Shawley has a current order book in excess of �200,000,
in addition to its stock, which is currently valued at �120,000. Croma has
acquired the business for a nominal consideration. Shawley will operate as an
integral part of Croma Defence Systems Limited. The Shawley products are
complimentary to Croma's current activities as well as increasing Croma's
access to a broader client base.
In addition to these acquisition activities, Croma has continued to build its
portfolio of products with the addition of a number of newhigh specification
products to its portfolio including the PILAR acoustic information system. This
employs the latest signal processing techniques in order to detect and locate
potentially hostile gunshots. The system is capable of indicating not only the
trajectory of the projectile, but also its muzzle velocity and calibre. Croma
has reached an agreement with the manufacturers of PILAR to distribute this
high potential product throughout its network of military and special services
clients.
Croma Defence Systems has completed lengthy and positive field trials for its
Zeus Light Grenade (Tactical Light) with the British Army. Reports of the
trials are now awaiting submission to the M.O.D. In addition to the UK,
significant interest has been received from other military forces overseas
where trial units have been sold.
Outlook
The second half of the year has started extremely well with the benefits of the
accelerated sales of our core products and Shawley's products beginning to
impact positively on the Group. This trend we expect to continue throughout the
final quarter of the current year and into the next year as we continue to grow
towards becoming a sucessful business within the international
counter-intelligence and defence marketplace.
Additionally, the completion of the proposed acquisition of R&D Design Services
Limited will make a further significant contribution to the Group and put us on
a sound footing in our current financial year.
John French
Chairman
31 March 2004
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2003
Notes 6 months 6 months Year
ended 31 ended 31 ended
December December
2003 2002 30 June
Unaudited 2003
Unaudited Audited
� � �
Turnover 61,136 79,579 142,092
Cost of sales (38,134) (50,256) (111,603)
Gross Profit 23,002 29,323 30,489
Administrative expenses (284,554) (252,371) (559,475)
Operating loss (261,552) (223,048) (528,986)
Loss on disposal of investments - - (222,791)
Interest Receivable 92 - 50
Interest payable (17,893) (6,590) (18,067)
Loss before taxation (279,353) (229,638) (769,794)
Taxation 2 - - -
Loss after taxation and for the (279,353) (229,638) (769,794)
period
Loss per share 3 (1.30)p (1.66)p (5.07)p
Fully diluted loss per share 3 (1.30)p (1.66)p (5.07)p
CONSOLIDATED BALANCE SHEET
31 DECEMBER 2003
31 December 31 December 30 June
2003 2002 2003
Unaudited Unaudited Audited
� � �
Fixed assets
Goodwill - 15,694 -
Tangible assets 51,423 63,325 53,816
Investments - 281,250 -
51,423 360,269 53,816
Current assets
Stock 126,722 127,645 107,999
Debtors 237,199 100,728 115,661
Cash 822,268 - 120
1,186,189 228,373 223,780
Creditors: Amounts falling due within (83,024) (269,484) (471,851)
one year
Net current assets/(liabilities) 1,103,165 (41,111) (248,071)
Total assets less current liabilities 1,154,588 319,158 (194,255)
Creditors: Amounts falling due after (15,000) (150,000) -
one year
1,139,588 169,158 (194,255)
Share capital and reserve
Called up share capital 2,872,160 1,051,818 1,146,554
Share premium account 1,057,959 1,094,927 1,133,025
Profit and loss account (2,790,531) (1,977,587) (2,473,834)
Equity shareholders' funds 1,395,588 169,158 (194,255)
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2003
Notes 6 Months 6 Months Year ended
ended 31 ended 31 30 June
December December 2003
2003 2002 Audited
Unaudited Unaudited
� � �
Net cash outflow from operating 4 (396,413) (171,769) (430,142)
activities
Return on investments and
servicing of financing
Interest received 92 - 50
Interest paid (17,893) (6,590) (5,118)
(17,801) (6,590) (5,068)
Capital expenditure and
financial investment
Purchase of tangible fixed (7,348) (5,807) (6,373)
assets
Proceeds from sale of - 41,370 108,459
investments
(7,348) 35,563 102,086
Cash outflow before use of (421,562) (142,796) (333,124)
liquid resources and financing
Financing
Issue of share capital 1,743,213 7,763 190,975
Cost of issue of equity share (236,224) (20,834) (33,000)
capital
(Repayment)/increase in other (194,358) 120,000 170,759
loans
1,312,631 106,929 328,734
Increase/(decrease) in cash 891,069 (35,867) (4,390)
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2003
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 but has been reviewed by
the Company's auditors.
2.Taxation
No liability to taxation arises due to the loss incurred.
3.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 6 months Year ended
ended 31 ended 31 30 June 2003
December December Audited
2003 2002
Unaudited Unaudited
� � �
Loss for the period (279,353) (229,638) (769,794)
Weighted average number of shares 21,426,363 13,823,611 15,188,248
In calculating diluted earnings per share, share options have been considered
to be non-dilutive.
4.Reconciliation of operating loss to net cash outflow from operating
activities
6 months 6 months Year ended
ended 31 ended 31 30 June 2003
December December Audited
2003 2002
Unaudited Unaudited
� � �
Operating loss (261,552) (223,048) (528,986)
Depreciation of tangible assets 9,741 10,140 20,217
Amortisation of intangible fixed - 19,546 39,096
assets
Loss on disposal of investments - 8,630 -
(Increase) in stock (18,723) (34,159) (14,513)
Decrease in debtors 22,012 64,273 49,334
(Decrease)/increase in creditors (147,891) (17,151) 4,710
Net cash outflow from operating (396,413) (171,769) (430,142)
activities
5.Share Capital
31 December 31 December 30 June 2003
2003 2002
Unaudited Unaudited Audited
� � �
Authorised: 5,000,000
100,000,000 ordinary shares of 5
pence each
60,000,000 ordinary shares of 5 3,000,000 3,000,000
pence each
58,470,780 deferred shares of 0.5 292,254 292,254 292,254
pence each
31 December 31 December 30 June 2003
2003 2002 Audited
Unaudited Unaudited
� � �
Allotted, called up and fully paid
Ordinary shares of 5 pence each
31 December 2003: 51,598,106 2,579,906
31 December 2002: 15,200,287 759,564
30 June 2003: 17,086,002 854,300
58,450,780 deferred shares of 0.5 292,254 292,254 292,254
pence each
2,872,160 1,051,818 1,146,554
The company issued the following shares in the six months ended 31 December
2003 for cash.
Number of Price per
ordinary shares share
of 5 pence each
26 September 2003 2,561,191 5.25p
8 October 2003 2,000,000 5.25p
18 December 2003 27,340,912 5.5p
19 December 2003 2,610,000 5.5p
Share premium 31 December 31 December 30 June
2003 2002 2003
Unaudited Unaudited Audited
� � �
Balance bought forward 1,133,025 935,642 935,642
Premium on issue of shares 161,158 179,669 250,383
Cost of issue of shares (236,224) (20,384) (53,000)
Carried forward 1,057,959 1,094,927 1,133,025
For any further information please contact,
John French, Chairman and Chief Executive
Croma Group plc - 01432 373 030 / 07836 722 482
Ben Simons / Chris Roberts
Hansard Communications
020 7245 1100 / 0771 309 0135
END
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
