REG - Croma Sec. Sol. Grp - Acquisition of Safecell Security Group

Croma Security SolutionsAnnouncement

20/12/2022 07:00

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RNS Number : 2391K  Croma Security Solutions Group PLC  20 December 2022

20 December 2022

Croma Security Solutions Group Plc

("Croma", "the "Company" or the "Group")

Acquisition of Safecell Security Group

Croma Security Solutions Group plc (AIM:CSSG), the security services provider
is pleased to announce that its wholly owned subsidiary,  CSS Total Security
Limited ("Croma  Systems"), has acquired Manchester based Safecell Security
Group Limited  ("Safecell" or the "Acquisition") and its two 100% owned
subsidiaries for an initial consideration of £0.45m and deferred cash
consideration of c.£0.3m.

Highlights

·      Acquisition of Safecell expected to be immediately earnings
enhancing

·      Adds a further a security centre, expanding national footprint,
to 14 centres across the UK

·      Significantly strengthens North West presence and extends ability
to service nationwide security clients

·      Third acquisition completed in 2022

Acquisition consideration

The consideration comprises a cash payment of £0.45m payable on completion
plus a deferred consideration payable on or before 16 March 2023, to the
vendors Mr and Mrs Dunne. The deferred cash consideration is the amount equal
to the cash plus an amount equal to the debtors less an amount equal to the
indebtedness as of the date of completion, which is expected to be in the
region of £0.3m

Information on Safecell

Safecell is a well-known and long-standing security business based in
Manchester, providing a comprehensive range of services with a particular
focus on electronic and physical security together with fire systems, to
retail and commercial customers across the North of England.  Safecell's
locksmith business operates from premises in Bury (North Manchester).

For the period January to November 2022, Safecell recorded revenue of £0.85m
with full year projection of £0.93m (including re-occurring revenue of £0.4
million) and a profit before tax of £0.19m.

As of November 2022, Safecell had net assets of £0.39m.

Benefits of the Acquisition

Croma's strategy has been and remains to create a nationwide network of Croma
Security centres. The Acquisition will extend the geographic reach of the
Group and through its Bury site provide a base from which Croma can
better service, support and expand existing relationships with clients that
have operations in the area. The Bury systems business will operate alongside
our successful acquisition last year of Safeguard (N/W) Ltd in Warrington.

Croma will immediately benefit from being able to provide in-house services to
clients in the Manchester and surrounding areas, many of whom are part of
national security accounts, currently these services are outsourced to
sub-contractors. Going forward, these will now be serviced via the Safecell
team along with the potential expansion of products and services that Croma
will bring to the Safecell clients. Mr Mick Dunne the highly experienced
principal of the business will remain as part of the Croma team and operate as
area manager.

Commenting on the Acquisition, Roberto Fiorentino, CEO of Croma, said:
"Safecell is an excellent business and under Mick Dunne it has built a strong
reputation in the North West security market. I am delighted Mick will be
staying with the Group and I look forward to working alongside him, as we
build our presence further across this important region. As recently stated,
alongside the proposed sale of our manned guarding business, Vigilant, we are
re-focusing our Company on our higher margin security solutions businesses
alongside establishing a national network of security centres. After a slower
period during the pandemic, opportunities such as Safecell are emerging which
is a natural fit with our objectives, and we are hopeful of completing similar
earnings enhancing acquisitions in 2023."

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

For further information visit www.cssgplc.com or contact:

 

Croma Security Solutions Group Plc
                    Tel: +44 148 956 6100

Roberto Fiorentino (CEO)

 

WH Ireland
Limited
Tel: +44 (0)207 220 1666

(Nominated Adviser and Broker)

Mike Coe

Sarah Mather

 

Novella                                                                                                  Tel:
+44 (0)203 151 7008

Tim Robertson

Fergus Young

 

 

 

 

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