Croma Security Solutions Share Discussion Threads

[rivaldo] 22/10/2021 11:26

Good coverage of the results here - and still no update from WH Ireland.

With the results coming out early, plus the lack of follow-up from WHI, my suspicion that something - hopefully an acquisition - is in the wind is growing:

[rivaldo] 21/10/2021 10:57

The now historic 6.56p EPS is after intangible amortisation (and £565k depreciation), so I assume the adjusted EPS will be higher.

Unfortunately WH Ireland haven't yet produced an update today. They've managed to do so for four other companies, so hopefully CSSG will be up soon.

[masurenguy] 21/10/2021 07:28

Solid set of results with 13% increase in EBITDA, 31.7% in cash and a slight uplift in the dividend.

Positive Trading Performance despite Pandemic

Financial Highlights

-- 13% uplift in EBITDA to GBP1.98m (2020: GBP1.75m)
-- Generated revenue of GBP32.5m (2020: GBP32.3m) slightly above the prior year
-- Furlough and grant income of GBP0.76m (2020: GBP0.62m)
-- Increase in profit before tax to GBP1.21 m (2020: GBP0.09m)
-- Strong cash position of GBP5.4m as at 30 June 2021 (2020: GBP4.1m)
-- 2.6% increase in total dividend for the year to 2.0p (2020: 1.95p) reflecting confidence in the outlook for all Group businesses

Trading Highlights

-- Successfully navigated the challenges arising from the pandemic balancing fulfilling contractual obligations whilst also protecting staff and the general public

-- Consistent demand for the Group's security services from existing customer base augmented by new client wins

-- PROception has developed into a natural extension of man guarding services
-- Signed UK partnership with iLOQ, leading Finnish security firm
-- All retail stores now fully open with trading improving month on month

Trading Outlook

-- Strategy remains focused on creating a national network of Croma Security Centres alongside setting new standards in providing premium guarding services.

-- Recorded positive trading period since year end, positioning the business for a good first half performance in the Group's next financial year.

Outlook and future developments

With all operating divisions profitable, and central overheads holding steady, the increase in cash reserves to GBP5.4m, and with a GBP1m bank facility secured on the debtor book, the Board believes the Group is a good position to pursue acquisition opportunities, win new contracts and develop its iLOQ partnership, whilst expanding and improving existing refurbishing infrastructure as demand continues to return to pre-pandemic levels.

[rivaldo] 21/10/2021 07:23

Excellent results to 30th June announced today, especially considering the pandemic....

Against a £13.3m m/cap, CSSG now have a £5.4m and rising cash pile. EBITDA was lifted 13% to £1.98m and PBT was £1.21m, with 6.56p EPS, plus a 2p dividend.

Trading since the year end has been "positive", "positioning the business for a good first half performance in the Group's next financial year".

The EBITDA increase was due largely to overhead savings and job support scheme income, but overall this is still a highly creditable performance.

CSSG should be able to take advantage of the current environment to open new security centres very cheaply. The new ProCeption concept looks to be thriving. The partnership with iLOQ sounds intriguing, and it's highly likely there'll be earnings-enhancing acquisitions soon.

As an aside, the prelims have been announced 4 days early - why? Could CSSG be lining up acquisition or other news in the coming days which they didn't want to be overshadowed?

[rivaldo] 19/10/2021 15:43

Glad to see you so confident EC. I note the 17,500 buy at 90p just reported....I wonder if Francis Erard (whomever he may be) is letting a few more go which is aiding liquidity.

Ta for the reminder also - the prelims will be next Monday 25th October.

[effortless cool] 19/10/2021 13:40

There's an unusual amount of liquidity in CSSG today. I have added again, in anticipation of good results next week.

[ntv] 04/10/2021 16:33

I am happy I bought a few of these but sadly not many

[rivaldo] 04/10/2021 15:01

Breaking out chart-wise, with buying at the full 94p offer now.

Hopefully today's news will attract the attention of some of the smaller company commentators such as those at Master Investor or at the IC.

[effortless cool] 04/10/2021 10:51

They still look superb value to me, rivaldo, and the resilience of trading over the pandemic, combined with the high cash holding, suggests that downside risk is very well protected.

[rivaldo] 04/10/2021 10:31

WH Ireland's research update this morning adds nothing at all to what was in the RNS, other than to point out that CromaVigilant has actually grown in the pandemic. They conclude that there are:

"further opportunities for the company to attack in the local authority and other spaces. The ahead-of-expectation results draw a line under the pandemic, and we look forward to further underlying progress in the current year within the key businesses".

EDIT - good to see you adding more to your already substantial holding EC!

[effortless cool] 04/10/2021 10:30

I've added 7,500 this morning but it's impossible to trade in any volume, which must put off anyone without an existing holding.

[bookbroker] 04/10/2021 10:21

That is because the shares are pretty tightly held, and off course the size of the company being very small.

[masurenguy] 04/10/2021 09:36

Just goes to show how illiquid and far below the radar this stock still is. The response to a strong update is just 8 Buys, totalling circa 15,000 shares, in the first 90 minutes of trading !

[bookbroker] 04/10/2021 07:43

Still undervalued, suspect that cash pile even larger now, expect a special dividend or news on increasing prescence of security centres further north.

[rivaldo] 04/10/2021 07:15

Lovely trading update - results for the year to 30th June will be ahead of prior guidance....

Previous guidance was £1.85m EBITDA, so I assume we can expect the final result to be around £1.95m-£2m.

This for a company with a £12.5m m/cap and at least a £5.5m cash pile.

Plus CSSG have announced a new strategic partnership to sell, install and maintain a potentially revolutionary type of door lock, applicable "across multiple industries"....

[masurenguy] 28/9/2021 16:06

Over the past 3 years results were reported on the 21/22 October. Therefore, we should see the finals for the y/e June 2021 in circa 3 weeks time.

[rivaldo] 17/9/2021 16:11

Looking a very interesting chart now.....

[bookbroker] 17/9/2021 10:28

Still way undervalued on the basis of reputation and position in market.

[bookbroker] 17/9/2021 10:27

I expect demand for security services increasing with return of outdoor sport and festivals, only blip might be rising rates of pay, but hopefully these factored in to their tenders.

[rivaldo] 15/9/2021 12:58

Moving up once again, on no trades as yet so probably another larger buy will again be reported late.

[rivaldo] 14/9/2021 22:45

That's an unusually large Buy of 20,000 shares at the full 85p offer this afternoon....

[bookbroker] 14/9/2021 15:19

Starting to get some traction at these higher levels, should be over £1 with strength of balance sheet, and trading performance.

[rivaldo] 14/9/2021 12:02

Hello - a series of small buys, and now the share price has broken out to new 18-month highs.

Interesting :o))

[rivaldo] 09/9/2021 09:56

Good link, cheers. Interesting to see the repeated references to "continued growth".