Croma Security Regulatory News (CSSG)

Croma Security Solutions Group plc

("Croma" or the "Group")

Trading Update

CROMA SECURITY SOLUTIONS GROUP PLC (AIM:CSSG) the AIM listed total security services provider provides an update on trading for the year ending 30 June 2013.

Operational update

Our businesses historically have been strong regionally focussed contractors. Following the transaction in April 2012 our aim was to integrate the capabilities of the regional businesses in order to cross sell services, and offer a UK wide total security solution.

The Odeon contract win, in particular, made clear to the Group the opportunities available to an integrated, national security solutions provider. In the second half of the year, the Group has continued to make progress both in this integration, and in expanding its geographical coverage.

Trading update

Investments have been made in people and products, training, equipment and vehicles in the second half of the present financial year in order to support the Group's development into a full service national security provider. In particular development costs for our collision avoidance and FastVein® products have been incurred in order to realise revenue in the forthcoming financial year.

These efforts have led to a certain number of contract wins that fall within the current financial year but are now expected to deliver fully only in the financial year 2013-14. Whilst the sales climate has been tough with clients reigning in spending and delaying orders, there are early signs that this may be easing.

Whilst we expect revenues for the current year to be only marginally below market expectations, the investments made in order to build our national service and product range, in addition to delays within the order pipeline have impacted profitability in the second half of the year, as a result of which the Group expects the profit for the year to be below current market expectations.

Outlook

Whilst the Board is confident of the Group's strategy, targeted cost reductions, including reduction in directors remuneration, are being made in order to better align the cost base with the present level of activity. The directors and management of the group own c. 30% of the issued shares, and are fully aligned with shareholders for the future.

The board and management have made considerable investment to develop a number of new clients who have indicated a willingness to spend, however the sales pipeline for the Group's larger customers can be a long process. The group looks forward to updating shareholders further as trading progresses.

For further information :

Croma Security Solutions Group plc

Sebastian Morley, Chairman Tel: +44 (0)7768 006 909

WH Ireland Ltd.

Adrian Hadden / Nick Field Tel: +44 (0)207 220 1666