Share Name Share Symbol Market Type Share ISIN Share Description
Croma Security Solutions Group Plc LSE:CSSG London Ordinary Share GB00B5MJV178 ORD 5P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 53.50 0.00 08:00:00
Bid Price Offer Price High Price Low Price Open Price
52.00 55.00 53.50 53.50 53.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 32.54 1.21 6.60 8.1 8
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 53.50 GBX

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Croma Security Solutions (CSSG) Discussions and Chat

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Date Time Title Posts
22/12/202209:24Croma Security Solutions - The Long Story356
07/11/201920:18Croma Group553

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Croma Security Solutions (CSSG) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2023-02-06 16:13:3853.0017190.63O
2023-02-06 14:37:2455.002,4501,347.50O
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Croma Security Solutions (CSSG) Top Chat Posts

Top Posts
Posted at 22/12/2022 09:24 by rivaldo
WH ireland's latest update is out, and once again includes no forecasts, but is at least a decent summary of where CSSG are at following the Safecell acquisition:

"Croma Security Solutions (CSSG) – Corporate – Complementary acquisition in security and locksmiths’s reflects significant m&a opportunities
Market Cap: £8.9m Share Price 55.5p

This morning’s RNS from CSSG provides further colour to the significant m&a /
consolidation opportunities in security systems and locksmith’s following the recent AGM update which outlined the potential divestment of CSSG’s specialist guarding services. A price of c.£0.75m for Safecell Security Group equates to a sub-4x historic PBT multiple based on the eleven months to November 2022, an undemanding multiple in our opinion.

Moreover, based in Manchester, the acquisition is highly complementary from a
geographical point of view, since the company already has activities in Bury, North of Manchester as well as the Safeguard business in Warrington which the company acquired last year.

We view the acquisition, although small, as very supportive of CSSG’s business going forward: (1) We note that experienced management at Safecell is staying with the business; (2) bringing the two Manchester operations together with this one is likely to create operational synergies, (3) cross-sells of the spread of services within the group are likely. Safecell is primarily a security systems business, with margins to match – typically these are 20% or more at an operating level, as reflected in CSSG’s own historic margins.

As a synergistic opportunity, Safecell is likely to enhance the overall margin while, as stated in the announcement, providing earnings enhancement.

WHI view: With significant change at group level waiting potentially in the wings (the disposal of Vigilant removes 83% of sales but less than half of operating profits), the company as a whole is becoming a higher margin business - respectively 14% and 19% at Locksmith’s and Systems in reported FY22A EBIT margins in the prior year, as opposed to the low single digit margins for Vigilant which are typical of a manned guarding business.

As the company has highlighted before, the consolidation opportunities continue to be strong as well as the prospect of building a national security centre. In relation to Vigilant, it is important to remember that disposal discussions are said to be at an early stage and that there is no inevitability to the proposed divestment either to members of the management team or anyone else. However, assuming that the divestment does occur, we read this morning’s announcement as helpful in further highlighting the close match of such opportunities as Safecell."

Posted at 20/12/2022 10:25 by rivaldo
Taking EC's forecast for this year, and pro-rating in six months of today's acquisition, CSSG would be forecast to make almost 6.5p EPS this year and around 9p EPS next year.

Plus CSSG are likely to have say a £1m-£1.5m cash pile against the £8.5m m/cap, so still headroom for further acquisitions (even before the Vigilant divestment sale proceeds, assuming this happens).

Posted at 07/12/2022 11:46 by rivaldo
Looking forwards, here's WH Ireland's initial view on the planned divestment - interesting point on the much higher margins in the retained businesses as opposed to the Vigilant guarding business being disposed of:


"Today’s AGM update from CSSG highlights (1) continued inline trading, (2) plans
to continue with the group’s strategy in recent years of consolidating the
locksmith’s market, and (3) potentially a significant divestment (and
accompanying Board changes) which would further that strategy.

The proposal to divest CSSG’s specialist guarding services, which accounted in FY22A for c.83% of sales and c.43% of operating profits (pre central costs) would significantly increase the focus on locksmiths (FY22A: 9% of revenues and 27% of EBIT) and electronic security (7% and 30%), and we note that the company has highlighted the ongoing “multiple̶1; consolidation opportunities, in addition to the success of the two acquisitions made in 11/21 and 07/22, suggesting that funds raised from divesting manned guarding could be deployed further to advance the consolidation process in line with this proposed renewed focus of the business as a whole."

"In terms of the underlying characteristics of the businesses, as the
data provided above makes clear, the proposed ongoing businesses are higher
margin – respectively 14% and 19% in FY22A, as opposed to the low single digit
margins for Vigilant which are typical of a manned guarding business."

Posted at 06/12/2022 15:11 by truffle
What I said as recently as 11th November

''I was a shareholder in Croma many years ago, met Sebastian Morley and said I was unhappy with the performance of the company.

The company's performance subsequently remained disappointing so sold out and nothing has happened in the intervening years to make me regret that decision. If you look back more than 7 years the share price graph tells you everything you need to know.''

Thank goodness Sebastian Morley is finally on his way out. Leaving a company worth 8/9 million after many, many years in charge and with little or nothing to show for it, no real or believable plan going forward, and effectively nothing for shareholders.

A truly dreadful performance.


Posted at 06/12/2022 08:35 by rivaldo
Up 10p now.

There was nothing in the share price for the security manning business anyway, so this will raise CSSG's profile and hopefully pinpoint a cash pile of anything from £8m-£10m.

Whilst also leaving in place a core business making almost £1m operating profit with growth prospects in terms of:

- further store acquisitions
- Fingo biometric partnership
- iLOQ distribution expansion

Posted at 06/12/2022 07:35 by rivaldo
The two remaining divisions made £0.9m operating profit between them last year. CSSG would also have post-disposal a cash pile of (say) £8m-£10m.

Which compares pretty well to the £8m m/cap at the current share price.

There's obviously been some hard talking about how to realise value for the PLC going forward, so not bothered if the manned security guys want to go on their own.

Posted at 14/11/2022 14:17 by rivaldo
The core numbers were pretty decent imo in the current climate (it was the headline numbers affected by reduced government pandemic support which perhaps prompted the selling).

The outlook in particular is very confident, as evidenced by the raised dividend and the narrative.

Once again WH Ireland has failed to produce specific forecasts for CSSG, even following the final results! Anyway, here's their summary FYI:

"WHI view:

Growing its contract portfolio, Vigilant has again provided evidence
of its ability to convert pipeline opportunities into contracts, notably with the
major £5m p.a. contract win awarded by a central London property owner and
developer, as well the prestigious Edinburgh St James centre win announced in
H1-21 (£1.3m).

Looking forward, we see a number of positive drivers for FY23E, notably the full year effect of the recent major contract win; the impact of a long list of contract awards secured, mainly within Vigilant, after the year end; the potential benefits of the newly acquired stores; and the potential impact of iLOQ.

We note the healthy level of contracted revenues of 1 month-plus (88%), and
while a significant proportion of sales will need to see contract renewals in the
New Year, CSSG’s track record has generally been very positive from this perspective. Regarding the iLOQ opportunity, group-wide training has now been
completed enabling CSSG’s employees to market and install this product country-
wide (so far one £0.3m contract gained), which we believe could present an
interesting area for growth moving forward."

Posted at 11/11/2022 10:39 by truffle
I was a shareholder in Croma many years ago, met Sebastian Morley and said I was unhappy with the performance of the company.

The company's performance subsequently remained disappointing so sold out and nothing has happened in the intervening years to make me regret that decision. If you look back more than 7 years the share price graph tells you everything you need to know.

Posted at 15/9/2022 13:23 by rivaldo
Agreed, certainly a canny move to announce the contract wins along with the update!

The useless brokers WH Ireland never had any forecasts out in the market AFAICS, so not really a "warning" per se. Nevertheless, CSSG made £0.87m EBITDA in H1, so H2 is likely to bring a drop to around £0.7m since the £1.5m EBITDA is a minimum.

The £6.1m per annum of new contract wins should have a lovely effect for the current year. It would also be nice to have an idea of what the cash pile is forecast to be - but unfortunately WH Ireland STILL haven't issued an update note even after today's news.

CSSG remains very good value imo also - let's see if this results in some broker forecasts at long last.

As an aside, given the mammoth requirement for security for the queue at the Queen's resting place - and at the various buildings commemorating her passing - I wonder whether CSSG have picked up any business? Perhaps this is not really the kind of work they go for.

Posted at 01/4/2022 12:58 by rivaldo
I suspect CSSG can go a long way themselves by consolidating a highly fragmented industry. I've seen it happen so many other times over the years. CSSG simply need to prove that they can do it effectively.

With a projected £4m-£5m cash pile at this year end (against an £11.7m m/cap) they certainly have the resources to do so.

Once CSSG have bulked up, then will be the time for predators to get interested.

The directors own over 30% of the shares, so their interests are aligned with the rest of us in wanting the share price to increase.

The top paid director recived £245k last year out of total directros' emols of £748k, which for six directors isn't an unreasonable total imo for a quoted stock of CSSG's size.

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