Croma Security Solutions Share Discussion Threads

[dolittle1] 21/8/2020 11:15

Sells well below the bid. Doee not bode well.

[bookbroker] 20/8/2020 08:11

Would rather see this company grow organically than go out and buy other companies, can easily grow their retail side, this is one sector that is recession proof as people become more paranoid about their personal sense of welfare. A lot of spiv outfits out there and reputation is paramount. This company has a strong presence in guarding large modern buildings for big organisations, they should stick to that, and carry on employing high quality staff, rather than the type of bruiser you see at the door of nightclubs, etc.

[rivaldo] 17/8/2020 08:45

Agreed, CSSG do have a strong brand and reputation to protect, but I suspect Morley and Fiorentino know their industry and competitors inside out and would be easily able to distinguish the good from the bad.

I'd rather the company was out there utilising its cash pile - in a prudent way of course. And I would rather forego the dividend to achieve higher growth given CSSG's microcap size, but I appreciate others would disagree.

[bookbroker] 17/8/2020 07:49

Do they need to make acquisitions, this is very much a personnel business, of which Croma has a very strong reputation, and very credible protocols relating to that. If they can simply win the right contracts they can then ensure that staff credibility is maintained to the very highest standard. Buying businesses may compromise that fact, as each security business likely has its own standards, albeit of a strong nature.

[rivaldo] 16/8/2020 22:44

As a newbie here I've gone back to the 15th June interview, which is the last one I can find unless someone else can correct me?

Encouraging stuff, including:

- CSSG have 25% of the FTSE 250 companies as clients
- 80% of turnover is recurring on long-term contracts
- there's the suggestion of acquisitions to take advantage of COVID-19's effect on competitors - the Chairman says they've "got a lot of cash"
- such activity would be opportunistic, to "really jump forward"

[grahamwales] 14/8/2020 14:15

Think they should do what Tesla done and split shares to make them more attractive to AIM investors imo

[rivaldo] 14/8/2020 13:32

Moving up nicely now after a 12k buy - perfect timing dolittle1 :o))

[dolittle1] 14/8/2020 12:54

Previous announcements tend to be followed by a retrace in the share price. Probably sell order being filled in the background.

[masurenguy] 14/8/2020 11:40

Eight small orders (all buys) so far this morning with a collective total of circa 25,000 shares - following yesterdays volume of just over 200,000. Poised to break north in my view but may be held back by negative sentiment on a down day in the overall market.

[rivaldo] 14/8/2020 11:07

A tick up on the bid - perhaps the seller is running out of stock.

[rivaldo] 14/8/2020 09:19

Indeed - though the £1.6m EBITDA is of course the minimum indicated, so hopefully we're looking at an actual result of say £1.65m EBITDA or more.

[effortless cool] 14/8/2020 08:56

Thanks, rivaldo. No forecasts, then, but at least a bit of coverage.

[masurenguy] 14/8/2020 08:55

Cheers Riv - perhaps this note will put CSSG onto some more peoples radar !

[rivaldo] 14/8/2020 08:45

My pleasure EC - note the £1.6m EBITDA indicated for the year just ended, and the record cash pile:

"Croma Security Solutions(CSSG)̵1;Corporate–

Impact from Covid only “slight”, DPS to be reinstated, a further contract win for VigilantMarket Cap £10.2mShare Price 77.5p

Yesterday’s update from CSSG reconfirms the positives highlighted in the company’s trading update on June 8th, notably the slight impact of Covid-19, the strong cash position, and the success of its premium guarding services. On the back of these drivers, the dividend is tobe reinstated at a 0.75p levelfor an interim DPS to be paid on September 4th, and this in itself should serve to reflect the company’s confidence in the outlook. In so doing, the Board is carrying through on its promise to review the original decision to suspend, taken early in lockdown, and paying tribute to the resilience of the business.

In addition to the comments on trading and the reinstatement of the dividend, the company has announced a new contract win today, worth £1.3mp.a. and starting ten months into the current financial year (year to end June ’21). The contract is to manage the security at the Edinburgh St James centre –a prestigious award which saw a high level of competition, according to the company, and which will include CSSG’sfront of house security service for offices which the company has developedin recent times.

WHI view: The typical H1 weighting of the business is present in 2019 / 20, in which the company has indicated that it expected to make £1.6m EBTIDA or more. With some one-off business concluding during the year, this remains a strong number, particularly against the Covid backdrop, which had some impact on CSSG’s retail businesses.The contract win is encouraging as displaying CSSG’s ability to win against strong competition, and the record levels of cash highlighted are also a real positive for the company in the current environment."

[effortless cool] 14/8/2020 08:28

Some broker research, finally. WH Ireland published something this morning; anyone have access?

[rivaldo] 14/8/2020 07:22

I added more yesterday afternoon too - pleased to be able to add again at just under 78p.

Hi Mas, good to join you again! There could be a quick re-rating here now.

[grahamwales] 13/8/2020 21:40

Thought the dividend would have been a little more bearing in mind previous was postponed. However better than nothing like most companies.

[effortless cool] 13/8/2020 15:02

I have added another 10k too.

[masurenguy] 13/8/2020 14:17

Good update & contract win plus the useful yield. Topped up today. Good to see you on board here Riv !

[basem1] 13/8/2020 13:19

Stonking value at these levels Any reason for the flatline in share price for 6 weeks ? I assume it is not well known and very few shares traded ?

[effortless cool] 13/8/2020 12:23

Glad you've joined us here, rivaldo. I bought some more in June and July, so have taken my average down to 98.9p. I do expect to make a decent profit eventually - today is a good start!

[rivaldo] 13/8/2020 12:13

Hi EC - just joined you here with a few buy trades at up to 78p.

CSSG have been on my watchlist for a while as looking very good value at these levels.

Now today we have confirmation that (1) COVID's impact on the company has only been "slight", (2) the dividend has been reinstated, (3) we have a new large contract win worth £1.3m annually for 3 years, and (4) that the year to 30th June has finished with "a good financial performance" and "record levels of cash".

It wouldn't surprise me to see the share price back up to your 108p average fairly quickly assuming there are no sellers around.

EDIT - apologies EC, our posts crossed!

[effortless cool] 13/8/2020 12:12

0.75p interim dividend reinstated and a new 3-year contract producing £1.3m p.a.

[effortless cool] 04/8/2020 09:26

Be patient, bookbroker. Unless they issue an unscheduled trading statement, there will be no news until the results in October, so it could conceivably flatline until then.

When it does move, however, I am confident it will be moving up.