26th Jun 2006 07:01
Croma Group PLC26 June 2006 26 JUNE 2006 CROMA GROUP PLC ("Croma" or "the Group") TRADING STATEMENT The Board of Croma, the specialist in design, development and production ofovert and covert surveillance, security and defence related products andservices, today provides a trading update post the Company's two recentacquisitions and its Interim Results announced on 31 March 2006. Although the Board is pleased to report that in the current year, the Group hasalready exceeded the total turnover for the year to June 2005, with a currentorder book and contracts across the Group standing in excess of £2 million, itstates however that in the third quarter, ended 31 March 2006, the Group didexperience short term difficulties as a result of technical issues at its CromaShawley CCTV division; linked to the introduction of a new product. The strongorder book at its R&D Design avionics division meant there were delays inrecruiting additional technical staff to meet increased demand. Although theBoard is pleased to report that these issues have now been resolved, with bothoperations aggressively tackling the backlog, the delays in the third quarterwill have an adverse effect on the expected full year performance of the Group. Croma Shawley is quickly becoming a leading brand in the field of specialistCCTV monitoring systems that incorporate the latest wireless technology. TheCompany has recently achieved its first installation of a new wirelesssurveillance system for a leading southern county-based Local Authority. TheCompany confidently expects this to lead to further orders from the samecustomer, together with the opportunity to role the system out to other localauthorities and Police Authorities. In addition, the Company recently took partin a major international IFSEC trade exhibition at the National ExhibitionCentre in Birmingham where new products were introduced to the market andreceived positive responses in terms of enquiries. R&D Design Services has an extensive order book of approximately £1 million andhas also recently secured new contracts, including a significant new order froma US defence related business. The Company is a leading innovator andmanufacturer of overt and covert monitoring systems in use with GovernmentAgencies, Police and the Military. It is involved in operations from Air SeaRescue to early warning systems and activities related to defence, immigrationand Customs & Excise. In essence, the system enables helicopters, fixed wingcraft and surface vessels to observe targets in adverse weather conditions suchas heavy sea mist. Update on recent acquisitions The two recent acquisitions have also prospered since joining the Group. CromaPhotobase, which designs, installs, services and maintains biometricidentification and access-control solutions at a wide range of locations, hasrecently attracted new contracts including an installation for a leading PoliceAuthority and from the commercial sector. Existing customers include HM Prisons. Croma Vigilant, a specialist company dealing with asset protection in theindustrial, commercial and public utilities market, has seen a significantuplift in new business through contracts recently acquired since February, witha value of £1 million on an annualised basis. Outlook Executive Chairman John French, together with newly appointed Group ManagingDirector, Sebastian Morley, has carried out a review of the future requirementsand opportunities for the expanded Group. As a result, a number of positivechanges are taking place to both accelerate and capitalise on growthopportunities, including the possibility of cross selling. A new sales andmarketing structure is being introduced to co-ordinate the sales effort of CromaPhotobase and Croma Shawley, where there are a number of immediate synergies interms of capitalising on the development of the compatible customer base. Croma will continue to actively seek further acquisition opportunities inpursuit of its policy of creating a Group with a fully integrated range ofproducts and services to meet the demands of the expanding surveillance andsecurity sector. Commenting on the performance of the Group John French, Executive Chairman said:"Whilst we are obviously disappointed at the issues that have affected our thirdquarter, we are pleased to see they have been dealt with satisfactorily. "During the current year the Group has already exceeded the total turnover forthe year to June 2005 and has a current order book and contracts across theGroup in excess of £2 million. The current structure of the Group has resultedin it being in a strong position to capitalise going forward on the increasingawareness and needs of the marketplace and the various aspects of surveillanceand security." ---Ends--- Enquiries: Croma Group plcJohn French, Executive Chairman Mobile: 07836 722 482 Bishopsgate Communications Ltd. Tel: 020 7430 1600Maxine BarnesScott Robertson Notes to Editors: Listed 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&D Design Services Ltd. On 3 February 2006, Croma acquired Vigilant Security (Scotland) Limited, aspecialist company dealing with asset protection in the industrial, commercialand public utilities market. On 13 February 2006, Croma acquired PhotobaseLimited, 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. These acquisitions will enable the Group to provide a more rounded securitysolution, and develop a totally integrated range of products and services todeal with the various aspects of the surveillance, security and defence relatedsector. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Croma Security