Croma Security Solutions Share Discussion Threads

[bookbroker] 10/11/2020 08:36

When you see the debacle that was the Manchester Arena, and the inability of the security personnel to react to what was a devastating attack on the British public, it’s time that companies such as CSSG were recognised for their expertise in employing ex-armed forces as security staff. Showsec is fine as an attendant at a football game or directing traffic, but you can see how insufficient their training is and the lack of experience their personnel have.

[rivaldo] 09/11/2020 11:50

Nice move on 11k of buys today. With a now historic £1.75m EBITA, plus £4.1m net cash, against a £9.3m m/cap, CSSG remains pretty cheap.

[dolittle1] 31/10/2020 17:23

Effortless, that is because i manage the share price in CSSG. Remember last time when i crashed the price after we had a short fight.

[effortless cool] 31/10/2020 12:44

Well dolittle1 was correct - it did fall below 60p in short order. I still see value here, however, and have updated the header with my latest forecasts.

[bookbroker] 23/10/2020 08:08

Read the RNS., it is quite clear why profits were reported at 87K, non-cash items, I’m more interested in the actual trading side of the business, strong cash flow is more important.

[buywell3] 22/10/2020 21:21

-- Reported profit before tax was reduced to GBP 87k (2019: GBP1.48m)

[dolittle1] 21/10/2020 22:50

What's your point, Battlebus?

[battlebus2] 21/10/2020 20:51

Found the missing Goodwill on their investors site

11. Goodwill
Cost
At 1 July 2019 & 30 June 2020
Accumulated impairment losses
At 1 July 2019
Arising in the year At 30 June 2020
Net book value
At 1 July 2019
At 30 June 2020
Impairment testing
£000's
7,311
-
857 857
7,311 6,454
During the year, goodwill was reviewed for impairment in accordance with IAS 36 "Impairment of Assets". An impairment charge of £857k (2019: £Nil) occurred as a result of this review. For this review goodwill was allocated to individual cash generating units (CGU) on the basis of the group's operations.
The carrying value of goodwill by each CGU is as follows:
Croma Security Systems Croma Locksmiths Croma Vigilant
2020 2019 £000's £000's
2,906 3,339 2,152 2,576 1,396 1,396 6,454

[dolittle1] 21/10/2020 15:07

Should move below 60p soon. Still NT to sell.

[dolittle1] 21/10/2020 14:32

NT to sell. About to crash.

[bookbroker] 21/10/2020 12:39

Need to see some director purchases once more, surprised this not moved higher, but then with the part-timers that are WHI doing little to act in the company’s interests it is hardly surprising. They really are a useless organisation, even their analysts seem to show a lack of understanding in the company’s results.

[rivaldo] 21/10/2020 09:09

WH Ireland today note that the £1.75m EBITDA was well ahead of their £1.6m expectations.

They also note that the £4.1m net cash is a very positive outcome given the pandemic, but that this may be partly due to the various pandemic support schemes.

In fact, CSSG state today explicitly that "the Group has not considered it necessary to avail itself of the various Coronavirus loan support initiatives available to it, including the Coronavirus Large Business Interruption Loan Scheme".

They conclude:

"WHI view: as previously flagged, the adoption of IFRS16 changed the face both of the P&L and Balance Sheet. From a trading perspective, and with 84% of its revenues on a 1 month-plus contracted basis, Vigilant remains a strong platform for future wins, and the development of the front of house service is an emerging business driver. New contracts during the period suggest that the model remains robust, and again the company highlights that the year has started well for this activity as well. In a consolidating industry, opportunities are highlighted arising from the pandemic, whose progress remains unpredictable – this seems plausible to us."

[dolittle1] 21/10/2020 08:41

Cheap but share price keeps falling and falling and falling

[bookbroker] 21/10/2020 08:36

This stock is cheap by most standards, if any normality returns you will see this easily return to pre-Covid levels. The underlying business is strong, and their services are more likely to see an uptick. It is in a strong position to expand the locksmith side of the business particularly, and we have already witnessed their ability to win large contracts.

[effortless cool] 21/10/2020 08:32

I will take a look.

[rivaldo] 21/10/2020 08:27

Good to see buying here at the full 70p offer - should move quickly on any buying interest at all.

Hi EC - as well as CSSG, REAT and PEG I also have some TRMR (I never post there as the thread is a waste of time), so today is even better :o))

PS : have you looked at CLX? It's a new IPO and I've just started a thread.

[dolittle1] 21/10/2020 08:10

Anyone buying now is donating their money to market makers. NT to sell.

[dolittle1] 21/10/2020 08:07

People paying 70p are trapped because it is NT to sell. More than 10% loss within minutes.

[dolittle1] 21/10/2020 08:03

NT to sell

[dolittle1] 21/10/2020 07:59

Doubt we will see many buyers here. Very illiquid stock.

[effortless cool] 21/10/2020 07:38

Nice morning for you, rivaldo; CSSG, REAT, PEG. Well done!

Just two from three for me.

[rivaldo] 21/10/2020 07:19

Very encouraging results out today - £1.75m EBITDA represents "an uplift on previous guidance representing a better than expected performance by the Group".

And CSSG have around £4m net cash to play with - not bad for a £9m m/cap.

The increased 1.95p dividend reflects the confidence going forward.

As does the outlook, particularly given the two large recent contract wins, stating that "Trading post the year end is progressing well".

Shame that the non-cash items (goodwill, depreciation) in the headline profit mask the true core business performance, but most should see through that.

The stress on "Potential new acquisition opportunities" hopefully indicates that the cash pile is about to be utilised....

[battlebus2] 21/10/2020 07:15

Happy with results, increased dividend and healthy cash balance. Looks like the pandemic may throw up some unusual areas of business. Outlook 👍