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Croma Security Solutions reports solid final results

By Josh White

Date: Monday 04 Nov 2024

Croma Security Solutions reports solid final results

(Sharecast News) - Croma Security Solutions Group reported solid financial results for the year ended 30 June on Monday, with group revenue rising 8.9% to £8.74m, after the first full year under its new strategic direction.
The AIM-traded firm said that on a like-for-like basis, revenue increased 6.3%, while EBITDA from continuing operations grew 12% to £1.06m, boosting the EBITDA margin to 12.1% from 11.6% in the 2023 financial year.

It expanded its footprint through the acquisition of two locksmith businesses in Peterborough and Worthing, increasing the total number of Croma security centres to 16.

Croma reported a strong cash position, maintaining £2.14m in cash and cash equivalents as of 30 June.

That was further strengthened by an additional £1.76m received in July and £0.45m in September, linked to the sale of its Vigilant business.

The company proposed a final dividend of 2.3p per share, up from 2.2p at the end of the 2023 period.

Looking ahead, Croma said it had seen a positive start to the 2025 financial year, with heightened demand from commercial clients and consumers increasingly focussed on security.

The firm said it expected to continue receiving proceeds from the Vigilant sale, with £3.6m received to date and the remainder due over the next seven quarters.

Croma said it was pursuing an acquisition strategy aimed at adding three to five security centres per year, targeting a return on investment of at least 15% per location.

"We have had a very successful twelve months, focusing on driving the Croma Locksmiths business and Fire and Security business forward through delivering high levels of innovation and service as well as seeking to increase our share of customer spend with a broader range of security services," said chairman Jo Haigh.

"We have considerable financial resources, and our acquisition pipeline is extremely promising."

Haigh said the company thus had a "significant opportunity" to add value to acquired business given its expertise and experience.#

"I have no doubt that the next 12 months will be pivotal in further transforming the group into an established and trusted name in security solutions."

At 0956 GMT, shares in Croma Security Solutions were up 17.93% at 79.6p.

Reporting by Josh White for Sharecast.com.

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