One to Watch: Croma Security Solutions Group
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 in the future.
All in all and a small purchase in, Croma Security Solutions, certainly fits the type of stock that I like and reminds me a bit of my early entry into Apc Technology (LON:APC) a stock I have been a holder for years and still keep close contact, hence the Croma Security Solutions Group being a ‘One to Watch’.
Hopefully over the next few weeks onto Stockopedia, I will be in a position to upload a basic business overview management Q&A article covering Croma Security Solutions.
Ticker code: CSSR, Shares in issue: 14.87m, Current SP: 34p, Market Cap: £5.05m, 52 Wk Low: 16p, 52 Wk High: 37.75p.
Disclosure: The Author holds shares in Croma Security Solutions (LON:CSSG)
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4 comments
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
Thanks for the information - a good read.
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.
Thanks for sharing, I will read your next post with interest.