Trading Update

7 Sep 2006 07:00

Croma Group PLC07 September 2006 7 SEPTEMBER 2006 CROMA GROUP PLC ("Croma" or "the Group") TRADING UPDATE The Board of Croma, the AIM listed surveillance security and homeland defencespecialist, today provides shareholders with a trading update, covering theimpact of the delays that affected the business in Q3 of last year and thesubsequent strong recovery in trading since the year end, an enhanced order bookand a new business wins. The Board believes it has now built a solid base from which to significantlydrive the business to its next stage and, with a number of potentialcomplementary businesses operating in Croma's marketplace, opens up an array ofstrategic opportunities - including potential relationships with organisationswith similar objectives. Croma looks to the next period with confidence. KEY POINTS • £1 million of new contracts secured in the last month • Issue of surveillance and homeland security never been bigger • Multiple contracts secured within each division • Quality customers, with repeat business • Strong recovery from the previously announced delays which impacted the 2005 results • Uplift in current order book • New acquisitions fully embedded and trading well In the opinion of the Board, Croma is a business of its time. Both surveillanceand homeland security are highly topical issues and Croma's products address theneeds of vulnerable commercial organisations, Government Agencies, LocalAuthorities, Police Forces and the Armed Forces - providing leading edgesecurity technology solutions and products. TRADING UPDATE Inevitably, the impact of the delays announced on 26 June 2006 in deliveringcertain contracts has had a negative impact on the financial results for theyear ended 30 June 2006. The Board anticipates that turnover for the year ended30 June 2006 will be approximately £2.8 million (2005: £1.9 million) with acorresponding loss before interest and amortisation of approximately £560,000(2005: £696,000). The Board is pleased to provide an insight to shareholders on the Company'sunaudited management accounts for the first two months of this financial year,which reflects a improvement in turnover of £821,669 (July - August 2005:£491,059) up 67%. NEW BUSINESS WINS Croma specialises in the design, development, production and marketing of overtand covert surveillance and defence related products, and comprises of fourdivisions, taking advantage of a clearly visible and hostile global securityarena. The Board is pleased to announce today a series of contract wins amongstits operating companies: • R&D Design Services Ltd is a leading innovator and manufacturer of surveillance monitors which utilises proprietary video image enhancement technology used by leading helicopter and fixed wing manufacturers worldwide. The division also offers a complete bespoke design and engineering service. The end user of the technology includes Government Agencies, the Police and the Military. The Board is pleased to announce that three sizeable new orders have been secured from Thales, Agusta and Telephonics - the latter representing a breakthrough into the robust North American defence sector, which could potentially lead to further business moving forward from both this customer and the North American sector in general. • Croma Shawley (a division of Croma Defence), is a leading brand in the field of specialist conventional and wireless CCTV monitoring systems that incorporates the latest technology. The division announces three new wins in the period which comprise of a contract with a major UK Northern Police Force - for the provision of a Pathfinder RVS system - a major Thailand CCTV distributor and an Israeli CCTV installation contract. • Croma Vigilant, a specialist security consultancy company dealing with asset protection in the industrial, commercial and public utilities market, has seen a 22% increase in its turnover since it was acquired into the Croma Group of companies. Today's contract wins are with Siemens and Ryden - the latter being a leading Scottish-based property management company. • Croma Photobase designs, installs, services and maintains biometric identification and access-control solutions at a wide range of locations. Croma Photobase has recently attracted new contracts, including an installation for a leading Police Authority, an order for a biometric attendance record for an international food manufacturer and an order for biometric visitor booking and ID systems at high security centres for a major UK bank. UPLIFT IN NEW BUSINESS ORDER BOOK Following the Company's trading update in June, where it was announced that thecurrent order book and contracts across the Group stood in excess of £2 million,the Board is delighted to report that this figure now stands at circa £2.5million - inclusive of £1 million worth of contracts secured in the last month -underpinning the fact that the Company is making inroads on new business - asmore fully described above. As both governments and private bodies bear responsibility for the protection ofindividuals and the community as a whole, safety and security is increasinglybecoming a high priority. Croma continues to provide innovative and qualitysolutions to meet this escalating demand with their existing surveillance &counter surveillance products, systems and services. The Group's current productportfolio covers Biometrics, CCTV solutions, surveillance monitoring and assetprotection. Executive Chairman, John French, commented: "The threat of terrorism and thegrowing issue surrounding 'Surveillance Security' and 'Homeland Security' is aglobal governmental concern. Croma is well placed to supply specialist servicesand products to those agencies and forces seeking sophisticated securitytechnology. The Board will continue to actively seek further acquisitionopportunities in pursuit of its policy of creating a Group with a fullyintegrated range of products and services to meet the demands of the expandingsurveillance, security and homeland defence sector." ---Ends---Enquiries: Croma Group plcJohn French, Executive Chairman Mobile: 07836 722 482 Bishopsgate Communications Ltd. Tel: 020 7430 1600Dominic Barretto This information is provided by RNS The company news service from the London Stock Exchange