Croma Security Solutions Share Discussion Threads

[lovat scout] 11/12/2018 12:56

anley

I suspect PR may have limited effect as their m/c size means they will be below the radar of most investors. CSSG need to grow, possibly by acquisition (and organic growth will take time) but given their modus operandi that is no doubt easier said than done. Growing and retaining a staff roster of ex-services personnel is not a quick process either.

I like the company but remains on the watch list for now.

[anley] 11/12/2018 12:11

That is a good point but its PR is poor and in these markets its best to keep under the rader.

I wish them well for 2019.

[lovat scout] 11/12/2018 11:33

anley - I suspect CSSG is getting lumped with the same sentiment as the low margin high turnover outsourcing businesses such as Interserve etc. All CSSG can do is have a strong balance sheet to silence doubters. AIMHO etc

[anley] 10/12/2018 11:46

Down to 95p.......and no one knows anything.

[anley] 30/11/2018 10:43

Now what is the problem with the price after the AGM?????

[anley] 26/11/2018 09:50

Well the markets have dived BUT the share price has increased to 105p and that bodes well for the AGM and short term future...........

[anley] 05/11/2018 17:03

Well let us hope the AGM produces some news and a few of our questions are answered as well.

The share price has increased towards the 100p so on the assumption that the markets do not dive maybe we see a bullish future.

[lovat scout] 02/11/2018 07:24

Anley

The company does look interesting although I suspect they need to do an investor day of sorts to increase interest and answer questions. CSSG is just too small for nearly all IIs atm.

As you say credit control vital for this business as well as a healthy balance sheet and working capital requirements will increase in line with revenues.

Probably not much WHI can do atm other than spread the word with some decent information

[anley] 01/11/2018 10:35

Thank you LS for your comments.

Both of us have raised questions which do need an answer. Perhaps the way the stock price is reacting is a result of the wider market not fully understanding how this company can prosper and grow over the coming decade.

Take your comment on Bad Debts - if they are to be written off then that figure makes for a P/L Loss and raises further questions on credit control based in Scotland...............

Ask the broker and I suspect you will get a stare............ they were brokers to a company we both post on from time to time?

[lovat scout] 31/10/2018 10:13

Anley

Plc costs including directors just over GBP1m.

GBP4.6m in total across all businesses seems a lot but running staff intensive businesses must incur quite a lot of admin costs - notes 3 and 6 to the accounts.

Hitachi licence runs for another 4 years - no detail on exclusivity.

I suspect the bad debts of 60+ days are being rolled through the categories and will be written off.

I also can’t find any info about the quantum of the one off projects which doesn’t help.

CSSG on my watchlist - looks interesting and cash flow is the main risk with this type of business but I couldn’t access investor’s champion for some reason.

AIMHO DYOR etc

[anley] 30/10/2018 13:42

Had a quick look at the Accounts to find:

1 Large Administration cost of £4.6m for Head Office when only 6 people are involved........perhaps someone would comment

2 Bad Debts have gone from £68k to £263K (60 to over 90 days) ......why?

Otherwise my recent comments stand and I see that the AGM is at 1pm on 28 November in London. Unable to come but hope someone does and my questions answered.

I see the company has an indifferent broker in loss making WI Ireland but I don't surpose they will be of any help if you asked them a question.

If I were the pricipal shareholder I would be looking for a new broker to get my company known and build on what the current directors have completed so far.

[anley] 23/10/2018 10:51

Investors Champion throw a word of caution as they seem not to understand the workings of the business or its future.

NO 145p price forecast for the time being..................old poster so says.

[anley] 23/10/2018 08:58

Good point Mr10%.......

Would like to know more on the shops - are they in good condition......are the goods for sale well presented etc etc............

Thanks.

[mrtenpercent] 22/10/2018 21:31

Haven't studied this one before, I just saw the Investors Champion thing today, so I apologise if I am going over old ground here.

Locksmiths division - has anyone visited them? 7 outlets all quite close, plus online sales - £3.15m turnover = £450k p.a. per branch. Hoping to have a look at them soon myself, I often go to that area.

Fastvein... This is based on the (patented) Hitachi system. Croma seem to have a licence to use it for one application for which they have written their own software, so it's really their app they are selling, not the vein recognition biometrics technology. Hitachi own that. There was a crowdfunding thing on Crowdcube not long ago where someone had the European licence for the same technology to be used for payments systems. Not saying Croma can't make money out of Fastvein, just asking how much we know about their app and what sort of market it might eventually have. How long does Croma's licence from Hitachi run and what exclusivity have they got?

[anley] 22/10/2018 13:13

So how does FASTVEIN get going with the current management and who is the competition?

Has the board set the AGM date? Its important as I am going to go and see what this company is all about.

Good point on ex-military personnel although the company could start its own recruiting and training division for itself and other parties.

[superadams] 22/10/2018 08:38

Agree- really need Fastvein to gain traction because pool of ex military personnel is not indefinite.

[anley] 22/10/2018 08:16

From a quick scan this division is or will be a big problem to solve.

Croma Biometrics turnover fell slightly to GBP308k (2017: GBP346k) with an operating loss of GBP267k (2017: 186k).

See my post 521 warning............

[anley] 13/10/2018 10:00

Fast forward to mid October and the AIM market is now in disarray due to a number of high profile shares being hammered down due to market conditions.

In Croma's case sit it out and wait for the results and then we can all debate them and for some miss and others invest.................

[anley] 20/9/2018 12:52

and your forecast share price of 145p.........

I would like to see just how staff is controlled and the COSTS after all the principal director is ex Army. If the market likes the sums then your 145p is a goer........if not back to the starting line.

Then there is the BIO market. Need to know how this is developing as this has more promise than the costs of man power and how they are controlled in this IT world we now live in.

I like this company - its on AIM - is small and can be developed in a highly fragmated security industry. I hope this helps and the debate can continue.

[phoenixs] 20/9/2018 08:21

Investorschampion. Results last year were in 1st half October, I reckon £2.4m profit multiple 8-10 gives an share price of around £1.45. Looking forward to the accompanying statement.

[phoenixs] 13/9/2018 14:58

the "stale bulls" suit me perfectly. the RNS stating a EBITDA of not less than £2.4m and a company valuation of about £14m mans that he share price is at the incorrect level, so I have been buying. They have signed long term contracts and I would suggest that the shares are very undervalued.

[anley] 13/9/2018 12:41

I think there are stale bulls and even some throwing in the towel.

I am going to wait as I want to see the cash flow and go to the AGM to ask a number of questions - such as - what is the staff turnover - how long do these security people last and how easy/difficult is it to recruit them.

I once employed over 300 full and part time staff (the brewing/pub industry) and I saw for myself all the issues the human being brought to the business = difficulties.

I would also like to see the BIOMETRIC business story - is still under development - what competition is there and so forth.

In the meantime I shall sit on my position which stands me in at just over £1 per share.

[cfro] 13/9/2018 10:58

Disappointing share price action the last few weeks now with no real follow-through from the excellent trading update.

Nevertheless, the valuation is looking cheap with a forward per of nine and we know that the outlook is very positive. Very happy to sit on my holding here. Results due next month.