Croma Security Solutions Share Discussion Threads

[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 👍

[masurenguy] 21/10/2020 07:14

Solid set of results !

Croma Security Solutions Group Plc
Final Results

Resilient Trading Performance: Croma Security Solutions Group plc, the AIM listed total security services provider, announces its final results for the year end ended 30 June 2020.

Financial Highlights

-- Positive operational and trading response to Covid-19 which has resulted in EBITDA of £1.75m (2019: £1.87m), an uplift on previous guidance representing a better than expected performance by the Group

-- Generated revenue of £32.3m (2019: £34.6m) reflecting the temporary retail closures during the period being partially offset by increased demand for manned guarding services

-- Reported profit before tax was reduced to £87k (2019: £1.48m) including two non-cash items, an increased depreciation charge of £0.57m under IFRS16 and an impairment charge of GBP0.86m primarily driven by an increase in the Group's cost of capital

-- Board's ongoing confidence reflected in an increased final dividend of 1.2p making a total dividend for the year of 1.95p (2019: 1.8p)

-- Excellent financial platform with net cash of £4.1m

Trading Highlights

-- Significant contract wins in the period

o £5 million per annum contract effective from June 2020 with leading owner and developer of central London property

o £3 million per annum contract commencing 2021, with Savills to manage the security for the Edinburgh St James Centre

-- PROception had another strong year and is now fully integrated into the Croma Vigilant offering

-- Retail network slowed in-line with Covid-19 restrictions but re-opened in July with trading moving back to normal levels

-- Successful execution of our business continuity strategy to manage the disruption caused by Covid-19

Trading Outlook

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

-- Trading post the year end is progressing well underlining the Group's ability to continue to operate successfully during the Covid-19 crisis

-- Potential new acquisition opportunities arising out of the pandemic

Sebastian Morley, Chairman of CSSG, said: "We are pleased with the way the Group has responded to the current crisis. The trading performance for the year was resilient and this has continued into the current financial year. Demand for our premium security services has been consistent and while the retail side of our business has naturally dipped this has been partially offset by an increase in manned guarding services. Looking ahead, the Group has high levels of cash reserves, no borrowings and remains well placed to expand its security network with interesting new opportunities arising in our markets as a result of the pandemic."

[bookbroker] 20/10/2020 13:08

I ask also whether it is wise to have NCO’s in important positions here, what this business needs is a more dynamic leadership, for too long has this company been trundling along at the behest of employees. For that reason would it not be better to be taken private?