Croma Security Regulatory News (CSSG)

15 Jan 2007 07:00

Croma Group PLC15 January 2007 15 JANUARY 2007 CROMA GROUP PLC ("Croma" or "the Group") Trading Update & Heads of Agreement for Acquisition In advance of the Group's Annual General Meeting (AGM) being held later today inHereford, the Board of Croma, the AIM listed surveillance security and homelanddefence specialist, is pleased to announce that it has signed Heads of Agreementto acquire the entire issued share capital of a leading privately ownedmanufacturer and distributor of CCTV products. The Board also takes this opportunity to provide shareholders with an update ontrading. KEY POINTS •Turnover for six months to December 2006 up 185.8% to £2,597,218; •Acquisition expected to be completed in February, around the time of the Group's Interim Results; •Proposed initial payment expected in Croma shares at 6.5p - a significant premium to current Croma share price; and •Acquisition expected to strengthen Croma's capabilities and geographic reach in the CCTV marketplace. Trading update Turnover for the six months to December 2006 was £2,597,218 (like for like 2005:£908,649) - an increase of 185.8% as a result of improved performance fromcore businesses, and recent acquisitions. The Board believes there willcontinue to be a steady increase in terms of turnover, as new business prospectsremain encouraging, and remain confident for the outcome for the year. The Board looks forward to providing a lengthier update on trading at the timeof the Group's Interim Results statement in February. Heads of Agreement The Board is also pleased to announce that it has today signed Heads ofAgreement to acquire the total issued share capital of a South Wales based CCTVmanufacturer and distributor. Under the terms of the contract, it is proposed that Croma makes an initialpayment comprising of new ordinary shares at 6.5p - a significant premium to thecurrent share price. The acquisition is subject to due diligence and signing, and the Board looksforward to updating shareholders further in due course. Commenting on today's news, John French, Chairman and Chief Executive of Cromasaid: "This acquisition would bring a number of benefits to our CCTV operationsin terms of technology and technical assistance. Furthermore it provides for anextended product range, together with a number of distribution opportunities forthe Group." ---ends--- Enquiries: Croma Group plcJohn French, Chairman & Chief Executive Mobile: 07836 722 482 Bishopsgate Communications Ltd. Tel: 020 7562 3350Dominic Barretto Mobile: 07930 450 156Jenni Herbert This information is provided by RNS The company news service from the London Stock Exchange