One to Watch: Croma Security Solutions Group

Thursday, Jun 12 2014 by
13

One stock that I have been following and recently added is the Southampton Headquartered Croma Security Solutions (LON:CSSG) an AIM listed security services provider.

Croma Security Solutions is split into four key operating divisions: Croma Vigilant, established in 1997 and provides guarding and asset protection; Croma Locksmiths, covering locks, safes and keys; Croma Security Systems for security and fire; and Croma Biometrics for identity management and access control.

For me, a big part of my investing strategy is questioning management and over the past few years I have uploaded a number of these onto Stockopedia including a recent Q&A with sector peer Westminster (LON:WSG).  Talking to management helps me as an investor to get a real feel for the company other than the website bumf and regulatory news that comes out.  To follow my management engagement style and after a small initial purchase of stock, I had a productive and very pleasant chat with the Chairman of Croma Security Solutions Group Mr Sebastian Morley a former Black Watch and Special Forces Officer.

Operating with a June financial year end, Croma Security will be hoping to better their like for like figures of full year revenue to June 2013 of £13.2M, with their EBITDA at £0.34M.At the 31 December 2013 half year stage, revenue was reported at £7.31M, up 7.7% and an EBITDA of £0.3M, with Cash at £0.8M and with no bank debt or loan notes.

The chat we had was a general one and we have agreed to follow up with a Q&A which I will upload here exclusively for Stockopedia users, the key feel I definately had following our conversation was that Croma Security Solutions management are not in the hype and jam tomorrow game but are looking to be reflected by the market on actual achieved results, which I admire.  Mr Morely pointed out, that Croma Security solutions is a cash positive, net profitable company with no bank debt, servicing predominantly the high end corporate UK market, with manpower security and technology systems.  Mr Morley pointed out that a large amount of the 14m shares in issue were tightly held with strong shareholder support for the strategy the company is following.

The potential as a shareholder with Croma Security Solutions does interest me, especially the opportunities that may open for the Croma Biometrics division…

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Disclaimer:  

This content has been created for information purposes only, and is NOT, in any way, a recommendation to invest.  This communication is a snapshot of a certain aspect of a discussed business at a moment in time, and is merely a basic starting point for research.  The article/thread has been created with honesty and integrity in mind and is based on publically available information sourced in relation to the title, such as from, RNS announcements, published reports, management comments, analyst reports, media coverage etc.  To this extent the author who has written the piece in good faith accepts no liability for the accuracy of the information and urges all readers to verify the content independently.  Please note that the value of investments may fall or rise and you may not get back the amount originally invested, or in some cases your investment may be wiped off altogether.  When investing, bear in mind that past performance is not a guide to future performance and that qualified independent financial advice should be sought before buying or selling shares.  The Author of this article may hold shares in the companies discussed.


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Croma Security Solutions Group PLC is engaged in the provision of manned guarding and asset protection services (Croma Vigilant); Closed Circuit Television (CCTV) security, fire and alarm systems (Croma Security Systems); Identity management and access control (Croma Biometrics), and Locksmithing Keys, Locks and Safes (Croma Locksmiths). The Company's segments include Croma Vigilant, which comprises the business of Vigilant Security (Scotland) Limited; Croma Security Systems, which comprises the business of a division of CSS Total Security Limited; Croma Locksmiths, which comprises the business of CSS Locksmiths Limited and Croma Locksmiths & Security Solutions Limited, and Croma Biometrics, which is a division of CSS Total Security Limited. Croma Vigilant operates in the manned guarding market with the delivery of its manned guarding, key holding and commissionaire services. Croma Security Systems provides a range of electronic security solutions for a range of clients. more »

LSE Price
82p
Change
-4.1%
Mkt Cap (£m)
12.2
P/E (fwd)
n/a
Yield (fwd)
n/a

Westminster Group PLC is a security and services company. The Company's principal activity is the design, supply and ongoing support of technology security solutions and the provision of long term managed services, consultancy and training services. It operates through two divisions, which include Managed Services and Technology. Its Managed Services division is focused on long term recurring revenue managed services contracts, such as the management and running of complete security solutions in airports, ports and other such facilities, together with the provision of ferry services, manpower, consultancy and training services. Its Technology division is focused on providing technology led security solutions encompassing a range of surveillance, detection, tracking, screening and interception technologies to governments and organizations across the world. The Company's subsidiaries include Westminster International Limited and Longmoor Security Limited. more »

LSE Price
9.35p
Change
-1.6%
Mkt Cap (£m)
13.6
P/E (fwd)
n/a
Yield (fwd)
n/a

APC Technology Group PLC is a United Kingdom-based company, which provides design, specification and distribution of electronic components and systems, lighting technologies and connectivity products. The Company's product ranges from critical components and Internet of Things (IoT) solutions to light emitting diode (LED) lighting. The Company's specialist electronic component distribution business, trading as Advanced Power Components (APC), is a distributor of specialized electronic components. APC Lighting Technologies trades as Minimise Energy Limited (MEL), which is engaged in the design, specification, supply and installation of individual LED projects. The Company, through Minimise Solutions Limited, offers advisory services to monitor, measure, analyze and verify energy and water usage. The Company, through EEVS Insight Limited, offers energy savings solutions. The Company provides services to the defense, aerospace, industrial, real estate, logistics and healthcare sectors. more »

LSE Price
8p
Change
 
Mkt Cap (£m)
14.6
P/E (fwd)
9.3
Yield (fwd)
n/a



  Is LON:CSSG fundamentally strong or weak? Find out More »


4 Comments on this Article show/hide all

ls2g08 15th Jun '14 1 of 4

Thanks for sharing, I will read your next post with interest.

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Elias Jones 26th Jun '14 2 of 4

Just had communication with Sebastian Morley, he feels my questions will be better suited after their end of year trading news circa September/October. Will get back to the company at that time.

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tjones180 30th Jun '14 3 of 4

Thanks for the information - a good read.

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Elias Jones 14th Dec '15 4 of 4

Croma Security Solutions is a company I have held for a while now and since the article nearly one and a half years ago the share price has risen from 34p to 50p.

In recent months Croma Security have announced lucrative new contracts and a recent acquisition of Access Locksmiths a profitable company. Croma Security is a profitable and debt free company, who are also paying a dividend this year. Sales could well be around the £20m mark with the acquisition.

The need for increased security solutions is unfortunately higher on the agenda now that it has ever been due the terror threats. The blue sky part of the business with huge potential is the Fastvein suite of products which Croma promote as the most advanced biometric system in the world beyond the fingerprint.

The Fastvein scanners supplied by Croma was featured by the Daily Mails today.

Top £34,000-a-year girls' boarding school uses finger vein scanners to check pupils in for lessons and even lunch
“According to a report by journalist Mark Hookham in The Sunday Times, the pioneering biometric technology is also being used by the super-rich to protect their homes and in hospitals and prisons.”
“It has been claimed that the ‘Fastvein’ scanners are more accurate than fingerprint and face-recognition technology, and could be used in future by the Home Office at the UK border.”

Full Daily Mail artilce here: http://www.dailymail.co.uk/news/article-3359140/Top-34-000-year-girls-boarding-school-uses-finger-vein-scanners-check-pupils-lessons-lunch.html


I have high hopes for this investment and at £7m cap I see plenty of upside over the next few years.

I will be conducting a management Q&A with Croma Security Solutions over the next few weeks and to this extent if someone has a question they would like to suggest please feel free to do so below or through stockopedia private message or via twitter @EliasJones1

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