Croma Security Regulatory News (CSSG)

23 Mar 2007 07:00

Croma Group PLC23 March 2007 23 MARCH 2007 CROMA GROUP PLC ("Croma" or "the Group") INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2006 The Board of Croma, the AIM listed surveillance security and homeland defenceproducts and services Group, announces financial results for the six months to31 December 2006. KEY POINTS • Turnover for the six month period was £2,644,236 (2005: £908,649) - an uplift of 191%; • Highly successful start to the second half of the year, with contract wins in January and February totalling £1,585,000; and • Heightened awareness of surveillance and homeland security needs. Commenting on today's announcement, John French, Executive Chairman of Croma,said: "We are obviously encouraged by the performance of the Group during the firstsix months of the current year. The positive start to the second half of theyear with record orders of £1,105,000 in January and a further £480,000 inFebruary would indicate that this trend will continue. "The Board has seen a very strong performance from Vigilant in terms of growthfrom an expanding customer base including a recent contract win for the M.o.D.valued at £530,000. The Board is confident of further significant contract winsgoing forward. Croma Shawley, our CCTV design and development operation is alsoseeing a marked improvement in trading with an order intake in January leadingto its highest monthly sales in February. "The recent introduction of its RVS (Remote Video System) has been wellreceived, resulting in an order from the Safer Neighbourhood Partnership, ajoint initiative between Lincolnshire Local Authority and Humberside Police for17 units valued at £74,000. Croma Shawley has also received orders in the lastfew weeks from the Middle East valued at £94,000, for its traditional pan & tiltCCTV unit. Croma Biometrics has made further progress with the installation ofbiometric access systems in HM Prisons and a trial contract with a member of theNHS Trust". - ends - Enquiries: Croma Group plcJohn French, Executive Chairman Mobile: 07836 722 482 Bishopsgate Communications Ltd. Tel: 020 7562 3350Dominic Barretto Mobile: 07930 450 156Jenni Herbert Seymour Pierce LimitedMark Percy Tel: 020 7107 8000 CHAIRMAN'S STATEMENT I am pleased to report on a highly active period for the Group, which has seenturnover for the six months to 31 December 2006 increase by 191%, and newbusiness secured in January and February of £1,585,000. Financials As a result of improved performance from core businesses, and recentacquisitions, turnover for the six month period was £2,644,236 (2005:£908,649). The loss before interest, tax, depreciation and amortization was£278,627 compared with £169,924 the same period last year. This was due tosome variations in margins principally due to the significant increase inturnover from Croma Vigilant which due to the nature of its business produceslower margins, together with the cost of the investment in strengthening theBoard with the appointment of a Group Managing Director and engagement ofmarketing consultants. These are both deemed as positive investments for thefuture. With the ongoing improvement in the level of turnover from productbased subsidiaries in the Group, the Board expects to see the level of margin improve during the course of the remainder of the year. The increase indepreciation and goodwill amortization is due to the inclusion of Vigilant andPhotobase, both of which were acquired in February 2006 and therefore notincurred in the previous year. The figures also allow for the inclusion ofLoan Note interest, again not incurred in the previous year. The Board believes there will continue to be a steady increase in terms ofturnover, as new business prospects remain encouraging, and remain confidentfor the outcome for the year. Further investment by the Board Shortly following the Group's full year results announcement, share purchases bytwo of the Board's Directors were announced. Executive Chairman, John French,purchased 155,000 shares at 3.15p; taking his total holding to 846,993 shares(John French also holds stock options of 2,088,390 at 5.5p and 6,000,000 at8.25p). Non-Executive Director, Nicholas Hewson, purchased 350,000 shares at3p, taking his total holding to 1,374,119 shares - representing 0.93% of thetotal issued share capital of the Group. Outlook The new business for our CCTV and biometric operations are the result of freshimpetus into our sales and marketing programme. The ongoing policy of the Group will be to continue to accelerate the growth ofthe current business and to seek compatible acquisitions to enable it to furtherconsolidate its position in the sector. As announced on 15 January 2007,discussions are ongoing with a South Wales based CCTV manufacturer anddistributor with a view to a marketing agreement and possible acquisition ofthat company. The Board will make a further announcement in due course. John FrenchChairman & Chief ExecutiveMarch 2007 CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE SIX MONTHS ENDED 31 DECEMBER 2006 Notes 6 Months ended 6 Months ended Year ended 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £ £ £ Turnover 2,644,236 908,649 2,817,875 Cost of Sales (1,710,663) (361,979) (1,567,741) __________ __________ __________Gross Profit 933,573 546,670 1,250,134 Goodwill amortisation (264,947) (101,031) (333,164) Administrative Expenses (1,237,342) (729,605) (2,028,660) __________ __________ __________Operating loss 3 (568,716) (283,966) (1,111,690) Interest receivable 673 121 920Interest payable (27,837) (14,461) (25,016) __________ _________ _________Loss on ordinaryactivities beforetaxation (595,880) (298,306) (1,135,786)Taxation 2 - - 45,312 _________ _________ _________Loss after taxation andfor period (595,880) (298,306) (1,090,474) ========== ========== ==========Loss per share 4 (0.40)p (0.31)p (1.04)p ========== ========== ==========Fully diluted loss pershare 4 (0.40)p (0.31)p (1.04)p ========== ========== ========== CONSOLIDATED BALANCE SHEETFOR THE SIX MONTHS ENDED 31 DECEMBER 2006 6 Months ended 6 Months ended Year ended 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £ £ £ Fixed assets Intangible assets 4,684,659 2,027,774 4,949,606Tangible assets 235,422 95,753 237,855 _________ __________ _________ 4,920,081 2,123,527 5,187,461 _________ __________ _________Current assets Stock 581,442 572,283 540,961Debtors 1,081,475 459,365 1,306,835Cash 30,717 - 242,083 __________ _________ _________ 1,693,634 1,031,648 2,089,879Creditors: Amounts falling duewithin one year (2,595,882) (952,456) (2,963,570) ________ _________ ________Net current assets (902,248) 79,192 (873,691) ________ _________ _________Total assets less currentliabilities 4,017,833 2,202,719 4,313,770 Creditors: Amounts falling dueafter one yearConvertible loan notes (3,787) - (53,844) (600,000) (250,000)Provisions for liabilities andcharges (27414) (27,414) ________ ________ ________ 3,386,632 2,202,719 3,982,512 ========== ========== ========== Share capital and reserve Called up share capital 7,703,591 5,323,791 7,703,591Share premium account 1,272,554 1,126,906 1,272,554Profit and loss account (5,589,513) (4,247,978) (4,993,633) ________ ________ ________Equity shareholders' funds 3,386,632 2,202,719 3,982,512 ========== ========== ========== This interim financial information was approved by the Board of Directors on21st March 2007 DJ BretelDirector CONSOLIDATED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 31 DECEMBER 2006 Notes 6 Months ended 6 Months ended Year ended 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £ £ £ Net cash outflow from 5 (120,035) (212,933) (584,346)Operating activities __________ __________ __________Return on investmentsAnd servicing of financingInterest received 673 121 920Interest paid (27,837) (14,161) (25,016) __________ __________ __________ (27,164) (14,040) (24,096) __________ __________ __________Taxation paid (167,294) - (128,084)Capital expenditure andFinancial investmentPurchase of intangible - - -fixed assetsPurchase of tangiblefixed assets (22,709) (9,950) (15,654)Proceeds from sale oftangible fixed assets - - 4,875 __________ __________ __________ (22,709) (9,950) (10,779)Acquisitions and disposals __________ __________ __________Purchase of subsidiaryundertaking - - (2,096,000)Net cash acquired withsubsidiary - - (151,844) __________ __________ __________ - - (2,247,844) __________ __________ __________Cash outflow before use (337,202) (236,923) (2,995,149)of liquid resources andfinancing __________ __________ __________Financing Issue of equity sharecapital - - 2,815,133Costs of issue of equity - - -share capitalIncrease in other loans 350,000 - 231,203Repayment of thecapital element of hirepurchase (4,123) (1,630) (9,876) __________ __________ __________ 345,877 (1,630) 3,036,460(Decrease)/increase in cash __________ __________ __________ 8,675 (238,553) 41,311 ========== ========== ========== NOTES TO THE INTERIM FINANCIAL INFORMATIONFOR THE SIX MONTHS ENDED 31 DECEMBER 2006 1.Financial Information The financial information above does not constitute statutory accounts withinthe meaning of Section 240 of the Companies Act 1985. The interim financial information has not been audited. 2.Taxation No liability to taxation arises due to the loss incurred. 3.Operating loss 6 Months ended 6 Months ended Year ended 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £ £ £This is stated after charging:Depreciation of tangible fixedassets 25,142 13,011 42,968Amortisation of intangiblefixed assets 264,947 101,031 333,164 ========== ========== ========== 4.Loss per share The loss per share is based on the loss for the period and the weighted averagenumber of ordinary shares in issue and ranking for dividend. 6 Months ended 6 Months ended Year ended 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £ £ £Loss for the period (595,880) (298,306) (1,090,474) ========== ========== ==========Weighted average number ofshares 148,226,744 96,740,874 104,997,872 ========== ========== ==========Loss per share (0.40p) (0.31p) (1.04p) ========== ========== ==========Fully diluted loss per share (0.40p) (0.31p) (1.04p) ========== ========== ========== The directors do not consider the share options in issue to be dilutive. 5.Reconciliation of operating loss to net cash outflow from operating activities 6 Months ended 6 Months ended Year ended 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £ £ £Operating loss (568,716) (312,646) (1,111,690)Loss on disposal of tangiblefixed assets - - 12,620Depreciation of tangible fixedassets 25,142 13,011 42,968Amortisation of intangiblefixed assets 264,947 101,031 333,164(Increase)/decrease in stock (40,481) (41,133) 14,126(Increase)/decrease in debtors 225,360 (247,481) 19,721Increase/(decrease) increditors (26,287) (220,677) 104,745 __________ __________ __________Net cash outflow from operatingactivities (120,035) (212,933) (584,346) ========== ========== ========== This information is provided by RNS The company news service from the London Stock Exchange