It’s good to see a reassuring statement from CSSG., particularly in the cash pile. And hopefully the security centres will have an uninterrupted twelve months for the next financial year. This is the part of the business which could potentially show meaningful growth with regard to the top and bottom line. I hope the market will reflect that the valuation is too low with regard to the strength of the balance sheet. |
The year end trading statement is out - and it's excellent. Results are better than anticipated - and will be ahead of the prior year despite the pandemic.
There's a hint that the final dividend will be terrific, and there's confidence that the business will continue to grow..
The £10m m/cap is bonkers given £1.85m EBITDA - at minimum - and a £5.5m and fast rising net cash pile! |
 Good update and dividend - let's see what the market makes of it !
Pre- Close Trading Update
Croma Security Solutions Group is pleased to announce the following pre-close trading update for the 12 months to 30 June 2021.
Robust Trading
Since the beginning of our financial year, both divisions have traded robustly and where Covid-19 has restrained the business, this has been more than offset by strong performances from other parts of the Group. As a consequence, the Board is anticipating reporting a better result than management had expected for the full-year with EBITDA of at least £1.85 million (2020: £1.75 million). The restrictions placed upon the business due to Covid-19 particularly on the retail side of the business were in place for the majority of the year whereas in the prior year they only took effect for 4 months. Despite this, Croma Systems which includes our locksmith stores is expected to deliver increases in sales and profits against the prior year. Croma Vigilant, our largest division is also expected to perform well against the prior year. The division has benefitted from the increased need for manned guarding services for empty premises and its PROception service which integrates the provision of front of house services with premium security services for individual buildings or larger complexes.
Strong balance sheet
The Company has no borrowings (excluding lease liabilities) and has maintained a strong balance sheet which has strengthened further over the past 12 months. As at today's date, the Company has net cash of £5.5 million. The cash position underpins the Board's confidence in the business and its ability to take advantage of any opportunities which may arise.
Dividend
At the half-year, the Board decided not to pay an interim dividend as a precaution given the general market uncertainties and instead wait until the year to pay to shareholders a final dividend which reflects the strength of the full year performance once it has been delivered. It is clear, the Company will achieve results ahead of the previous year and the final dividend is expected to reflect this.
Sebastian Morley Chairman of CSSG said: "Our teams adapted quickly and efficiently to implementing Covid-19 security safe protocols across the hundreds of buildings we protect 365 days a year. This adaptability has been key to maintaining and winning new accounts and our trading performance reflects this. Consequently, we are confident in our ability to continue to navigate through the current trading restrictions and at the same time continue to grow our business." |
Guess the continuation of restrictions has not helped the valuation here, and the St James Quarter contract maybe being delayed the issues concerning the full opening of the redevelopment. |
Deal is share price is usually ramped up prior to a placing, not tickling down! Off course, in PTRO’s case the broker has let them down, particularly in light of all the positive news. |
Placing soon for acquisition? Maybe, around 58p. |
Would like other people’s perspective on this, no one, the directors, shareholders, not even myself seems to know what is happening within this company. Maybe no news is good news, but clearly a lack of it is weighing on the share price. Some sort of trading statement would be preferred once a quarter at least. But the management here seem to be disinterested in outside investors! |
For goodness sake bookbroker, all you seem to do is to attack the management here and also on another mutual stock, Pelatro. If you think that the management is so poor and/or underperforming why don't you just sell out and move on. That is what most investors would do, instead of just constantly carping about them ! |
WTF! This is supposed to going up, not down, Morley really needs to pull his socks up, shocking returns for shareholders, I thought he sounded positive last time he repeated himself, clearly market thinks otherwise! |
Not surprising when the company seems have so little to remark upon, a feature of their business, be nice to hear if they plan to expand security centre side of things. But a minnow in a big pond as regards the bourse. |
OMG !
😒 |
From excitement to misery - yesterday's 1p fall puts us on a "downwards weekly price breakout".
CSSG, the world's least thrilling rollercoaster. |
No chance of that here, Morley just intent on getting his 200K p.a. for minimal effort to create a growth stock. |
Yes, it's getting difficult to contain the excitement ! 😆 |
According to the ADVFN Follow Feed, CSSG has "hit an upwards monthly price breakout" today.
Not bad for a ha'penny rise! |
A £4k buy and a tick up :o))
A combination of an acquisition from that cash pile and organic expansion would be fine by me. |
That’d be the day, I’d rather see organic growth by expanding the security centres out of the south and up country! |
Nice move up after a 14k buy at 71.2p.
With all that net cash (£3.9m) I'm hoping for a highly earnings-enhancing acquisition to further enhance the positive trading. |
Well, inform me of something that is positive to the effect that a re-rating of this stock will reflect that view. |
I welcome contrarian views on shares that I hold, if they are informed and rational, since it helps to maintain perspective. However, there is a big difference between looking at a contrarian view from time to time, as distinct from being consistently negative. That is just the reverse of the cheerleader coin ! |
Just a contrarian, I hold the stock, all I wish to see is them to fulfil what they report in results. That is grow the business by landing and expanding, so far there is little evidence. They have a cash pile, security is a growth industry so where is the news to confirm the statements. |
I concur Riv. If you're so determined to be continually negative bookbroker, why do you still remain a shareholder? On the other hand, perhaps you have another agenda here ! |
There's definitely an opportunity to adapt the new PROception model to incorporate the COVID opportunity imo - as well as taking advantage of simply the need for additional numbers involved in responsible COVID pass/certificate checking.
Let's see if CSSG can take advantage. |
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