CMG Croma Grp

RNS Number:7190Z
Croma Group PLC
14 June 2004



                                Croma Group plc

                   ("Croma" or "the Company" or "the Group")

The Directors of Croma note the recent fall in the price of the Company's
ordinary shares.

It is the Director's belief that the current share price does not truly reflect
the positive events that have taken place within Croma over the last few months
and the prospects for the Group going forward.

The Group moved from Ofex to AIM in December 2003, raising approximately #2m
before expenses from a pre IPO fundraising, an offer for subscription and a
placing of shares with a number of leading institutions and other investors. The
funds were used to clear all existing debt and to fund an aggressive change in
emphasis in the activities of the Company's core subsidiary, Croma Defence
Systems Limited ("Croma Defence"), from product development to sales and
marketing. Since February 2004 there have been positive signs that this policy
is achieving positive results.

In March 2004, the Group acquired Shawley Products, a leading brand name in
specialist monitoring systems, whose products are in use by Local Authorities,
Government Agencies and Public Utilities. Croma paid a nominal amount of
consideration for Shawley and it now operates as a profitable division within
Croma Defence.

In April 2004, the Group acquired R&D Design Services Limited ("R&D Design")
with the acquisition being funded in part by a further placing of shares which
raised approximately #2.3m before expenses. R&D Design supplies innovative
surveillance systems with the ability to see through fog and sea mist to an
international range of major manufacturers and end users including police and
air sea rescue helicopters, government agencies, and the military. The systems
are in use world wide in both helicopter, fixed wing, and surface vessels. R&D
Design was trading profitably when it was acquired by Croma and it continues to
trade profitably.

As a result of the improved performance of Croma Defence and the two
acquisitions made by the Group, it achieved profitability for the month of May
2004 and the Directors expect it to be profitable in June2004 as well. The
twelve months ending 30 June 2004 are expected to show a significant reduction
in the losses as compared to the year ended 30 June 2003. More significantly,
the Group will enter its new financial year on 1 July 2004 and the Directors
believe the Group will achieve a maiden profit for the full year.




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

END
TSTQKQKKDBKDOAD

Croma Grp (LSE:CMG)
Historical Stock Chart
From May 2024 to Jun 2024

Croma Grp (LSE:CMG)
Historical Stock Chart
From Jun 2023 to Jun 2024