Croma Security Regulatory News (CSSG)

13 Feb 2006 07:00

Croma Group PLC13 February 2006 13 February 2006 CROMA GROUP PLC ("Croma" or "the Group) ACQUISITION OF PHOTOBASE The Board of Croma, the specialists in the design, development and production ofovert and covert surveillance, security and defence related products, is pleasedto announce today the acquisition of biometric identification and access-controlsolutions company Photobase (Limited). Building on the acquisition of Vigilant (Scotland) Limited announced on 3February, the acquisition of Photobase will enable the Group to provide a morerounded security solution. Photobase adds a new range of hi-tech products toCroma's inventory, allowing the Group to take advantage of a growing need foridentity verification. HIGHLIGHTS •Croma to acquire Photobase for an initial payment of £1,292,000 comprising of £792,000 in cash and the balance in 7,692,308 new ordinary shares at 6.5p; •This is the second of the two acquisitions referred to in October's trading statement; •Photobase's addition extends Croma's capabilities, opening up the biometrics arena; •Acquisition significantly strengthens the Group's client base, to customers already established in Police, Prison & Immigration, Government and Commercial organisations. •Following the acquisition, there will be increased opportunities to grow the Group's overseas presence. Photobase is a UK-based business which designs, installs, services and maintainsbiometric identification and access-control solutions to meet the physicalsecurity needs for a wide range of locations, budgets, security policies andorganization types. Photobase provides high level security products and solutions and its latest andmain product is called Touch & Go. This is a secure access control system, whichonly needs a fingerprint for identification and searches 1000's of records in asecond. It offers levels of security, power, and simplicity far in excess oftraditional card and PIN based systems. Photobase has been profitable every year since inception in 1989. In the yearended 31 December 2004 Photobase generated profit before taxation ofapproximately £339,193 on turnover of approximately £963,872. Net assets as at31December 2004 were £35,185. Photobase will be re-branded Croma Photobase and going forward will become adivision of Croma Defence Systems Limited. Its customer base ranges fromcommercial organisations to government and has enjoyed particular success in theprison and immigration field. Meanwhile, Photobase's new range of products isalso receiving encouraging sales and interest from overseas. The initial payment for the acquisition is £1,292,000 comprising of £792,000 incash and the balance in Croma shares at 6.5p ("Vendor Shares"). Further paymentsup to a maximum of £3,000,000 will be made on a performance-related basis forthe trading period ending 31 December 2007. Application has been made for the admission of the 7,692,308 Vendor Shares totrading on the AIM market of the London Stock Exchange on 16 February 2006. TheVendor Shares will rank pari passu with the existing ordinary shares of theCompany. Commenting on the acquisition, John French, Chairman and Chief Executive said:"The hi-tech product range that Photobase brings with is an important additionto the Group. As well as enhancing our overall offering, it also opens up awhole new client base. "The focus here at Croma remains on providing a one-stop-shop for securityneeds. Following our two acquisitions so far this year, we are well on the wayto achieving this and look forward to further developments moving forward." --ENDS-- Enquiries: Croma Group plcJohn French, Chairman & Chief Executive Mobile: 07836 722 482 Bishopsgate Communications Ltd. Tel: 020 7430 1600Dominic Barretto Mobile: 07930 450 156Nick Rome Mobile: 07748 325 236 Notes to Editors: CromaListed on the AIM market of The London Stock Exchange, Croma Group plc, the specialists in the design, development, production and marketing of overt and covert surveillance and defence related products, comprises of three divisions; namely Croma Defence Systems Ltd, Shawley (a division of Croma Defence) and R&DDesign Services Ltd. PhotobaseThe latest and main product is called Touch & Go and has taken its roots,ruggedness and reliability from the systems designed for prisons. It is designedto overcome all the problems associated with traditional card based accesscontrol system and indeed, when compared side by side, demonstrates deficienciesand shortcomings in those systems thus exposing and opening up a very largemarket. All of Photobase's other systems focus on the people identification business,some of which include Photo ID Card Production, Time & Attendance, VisitorManagement and Control. The system is being expanded to include Asset Managementwith RF, but in conjunction with biometric identification for proof ofownership. Some custom development is performed and a complete maintenance andafter care sales system is in operation to ensure the customer has first classsupport. This information is provided by RNS The company news service from the London Stock Exchange