REG - Croma Sec. Sol. Grp - Half-year Financial Report
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RNS Number : 4437U Croma Security Solutions Group PLC 26 February 2026
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.
26 February 2026
Croma Security Solutions Group PLC
("CSSG", "Croma", the "Company", or the "Group")
Interim Results
'A Period of planned Investment and Reorganisation for Future Growth whilst
Remaining On-Track to Meet Full-Year Targets'
Croma (AIM:CSSG), the AIM listed innovation and service-focused security
solutions provider, is pleased to announce its unaudited interim results for
the six months to 31 December 2025 ("H1" or the "Period").
Commenting on the Half-Year trading performance, Croma Chief Executive,
Roberto Fiorentino said: "We recorded a 9% uplift in revenues, consolidated
our portfolio, reset our advertising strategy and invested in expanding our
management team to support our business as we scale-up. A very active period,
preparing the business for the integration of further acquisitions and whilst
we recorded a planned reduction in profit, we now have a better structured
portfolio and a stronger team with which to support the future growth of the
business. Entering the second half of this financial year, we completed the
acquisition of TLS Security Systems Limited in Taunton and remain on track to
meet full year targets."
Financial performance in H1
· Group revenue of £5.0 million (HY25: £4.6 million) up 9%
benefitting from acquisitions made in the prior financial year though held
back by planned security centre refurbishments and the strategic consolidation
of four branches into two, alongside customer caution in the lead up to the
2025 Autumn Budget. In addition, online sales were temporarily reduced
following a Google Ad strategy reset and a complete reindexing of online
stock, positioning the platform for significant online sales improvement
moving forward.
· Higher costs, primarily investment as planned into the business and
in key management hires to support future expansion led to:
o EBITDA of £0.436 million (HY25: £0.572 million)
o Profit before tax of £0.252 million (HY25: £0.456 million)
o Earnings per share of 1.35p (HY25: 2.25p)
· Financial position remains robust with no debt and cash at period
end of £4.4 million (HY25: £4.2 million) with a further £0.85 million due
from the disposal of Vigilant by June 2026
· Net asset value per share 113p (HY25: 111p)
Operational performance
· Despite a cautious market environment both the fire and security and
locksmith divisions delivered resilient trading performances
· Education, utilities, healthcare, and leisure remain the Group's
principal customer sectors
· Streamlined the portfolio through the merger of two security centres
in Peterborough and two in Southampton, with the merged locations refurbished,
alongside the refurbishment of a further store in Portsmouth.
· Good progress on expanding the pipeline of acquisition targets with
the expectation of completing further transactions in H2 2026
· Reset Google advertising strategy creating a better longer-term
balance between Google ad spend and online sales generation and profitability
· Significant investment in people across Operations, HR,
Engineering and Head Office
· Welcomed John Wakefield as Non-Executive Chair and Andy Wonnacott
as Non-Executive Director
Trading in H2
· Positive trading performance since the half-year with a strong new
business pipeline to support the Board's confidence in the outlook for the
full year
· On 2 January 2026, completed the acquisition of TLS Security Systems
for £0.47 million, and its freehold retail premises for £0.20 million
o An established locksmith business based in Taunton, Somerset taking
Croma's security centre network to 17 locations
o Annual revenues of £0.94 million and EBITDA of £0.11 million for 12
months to 31 March 2025
o Excellent market position in the healthcare sector with clear
opportunities to cross-sell additional Group services
· The Board intends to declare a single final progressive dividend
with the FY26 results
Video Q&A with CEO Roberto Fiorentino
For further information visit www.cssgplc.com or contact:
Croma Security Solutions Group Plc
Tel: +44 (0)1489 566 166
Roberto Fiorentino, CEO
Teo Andreeva, CFO
Zeus
Tel: +44 (0)203 829 5000
(Nominated Adviser and Broker)
Mike Coe
James Bavister
Novella
Tel: +44 (0)203 151 7008
Tim Robertson
Aeliya Bilgrami
Notes to editors:
Croma Security Solutions is an expanding technology led security solutions
provider with over 50 years of specialist experience, delivering high-quality
security solutions across locksmith, fire and security services for both
domestic and commercial environments. The Group's UK network currently stands
at 17 security centres, stretching from its headquarters in Southampton,
across the Midlands and up to the Northwest. Croma services a range of sectors
including health, education, leisure and entertainment, and utilities, and is
trusted by national brands, including multiple NHS Trusts with their demanding
and complex security needs.
Croma's growth strategy is focused on establishing a national security
network. In 2023, it sold its man-guarding business Vigilant for £6.5m, which
has provided the capital to fund the expansion of the business. Croma is a
proven acquirer of local, traditional locksmith businesses, which are
developed into its network of modern security centres, offering both total
security solutions and locksmith services to retail and commercial customers.
The new security centres benefit from extended product ranges, centralised
group services, and both a local and national customer base. Since the
Vigilant sale in 2023, Croma has added new businesses to its network, and has
a strong pipeline of further locksmith stores to be acquired into the network.
Croma is listed on the AIM market of the London Stock Exchange. Founded in
1970, it is headquartered in Southampton and has over 90 employees.
CEO Statement
Interim Results for the Six Months Ended 31 December 2025
Croma is a growth business, and we signalled in the early part of 2025 that
the Company needed to invest in key personnel and reorganise aspects of the
Company to ensure we have the necessary breadth of skills and structure to
facilitate the execution and integration of our acquisition pipeline. During
this six-month trading period we successfully reorganised key parts of the
business and welcomed a number of senior hires, establishing an improved base
from which to grow the Company.
These actions were absorbed into our trading performance holding back topline
sales growth to 9% and reducing profitability in the short term. However, the
actions to consolidate and refurbish the portfolio, and the resetting of the
Google Ad strategy are already increasing current profitability and are
expected to do so for the long-term.
Financially, the Company is in a strong position with no debt and cash of
£4.4 million; a position that will be further enhanced by £0.85 million due
by June 2026, relating to the final two payments owed from the sale of the
manned guarding business, Vigilant.
The second half of the current financial year started strongly with the
acquisition of TLS, a well-established locksmith in Somerset with a strong
presence in the healthcare sector. This acquisition, together with the post
Budget improvement in customer sentiment adding good visibility to expected
incoming orders, means the Board is confident of meeting market expectations
for the full year.
Financial Performance
For the six months ended 31 December 2025, the Group delivered revenue of
£5.0 million, representing a 9% increase compared with £4.6 million in the
same period last year. This growth includes contributions from the
acquisitions completed in Peterborough and Leeds.
As expected, profitability was lower during the period, primarily reflecting
the planned increased investment in our people and the wider business. EBITDA
for the period was £0.436 million (HY25: £0.572 million), while profit
before tax was £0.252 million (HY25: £0.456 million). Earnings per share for
the period were 1.35p (HY25: 2.25p).
The balance sheet remains strong, with no debt and cash of £4.4 million at
the period end with a further £0.85 million due to be received by June 2026
in respect of Vigilant.
Dividend
In line with last year, the Company is not proposing an interim dividend but
intends to declare a single final progressive dividend with the FY26 results.
Operational Progress
We are building a larger business with the objective of developing Croma into
a national security brand providing a leading range of security products and
services. This strategy is being delivered through an acquisition-led
expansion of the Group's security centre network, focused on acquiring
modestly valued, independent locksmith businesses.
Following acquisition, these businesses will be converted into full-service
security centres with a broader product and service offering, while benefiting
from Croma's inherent advantages in software, centralised purchasing and the
elimination of duplicated costs. The Group currently operates 17 security
centres and is targeting the addition of between three and five new centres in
each financial year.
The acquisition pipeline continues to be successfully progressed and the focus
in H1 was on investing in and reorganising parts of the business to better
support the next phase of growth. As previously indicated, this investment was
expected to reduce profit in the short term and will materially enhance the
Group's operational capability in the longer term. A key priority was the
expansion of the management team to ensure the business can operate
efficiently while simultaneously progressing and executing the acquisition
pipeline. As a result, the Group invested in additional resources across
Operations, HR, Engineering and Head Office functions.
During the period, we also reset our Google Ads strategy and online sales
platform. As the network has expanded through acquisitions, the Group's
digital advertising approach had become fragmented and online sales returns
were suboptimal. In response, we restructured our relationship with Google
Ads, re-indexed the full online product range and relaunched the Group's
online store on a new platform. While this reset led to a temporary reduction
in online sales, performance is now rebuilding and, importantly, doing so at
an improved profit margin.
An increasingly important growth area for the Group is the sale and
installation of security and fire doors. Demand has grown across
motor-operated hinged doors, sliding doors, roller shutters and fire curtains.
These premium products generate attractive margins, with orders received
particularly from the leisure and healthcare sectors. There is good visibility
on further orders during the current financial year.
In this area, we expect the Terrorism (Protection of Premises) Act 2025
(Martyn's Law / Protect Duty) may become an additional driver of growth.
This legislation requires publicly accessible premises - such as hospitals,
schools, theatres, and shopping centres - to implement proportionate security
measures without compromising fire safety. Croma is well positioned because we
understand both electronic security systems and compliant mechanical door
hardware. Many competitors cannot integrate both and the Group is already
engaging with clients through CPD-accredited events and requests for
guidance.
In January 2026, we completed the acquisition of TLS for £0.47 million, a
well-established locksmith business based in Taunton, Somerset, and its
freehold retail premises for a further £0.20 million. TLS generated revenues
of £0.94 million and EBITDA of £0.11 million for the 12 months to 31 March
2025. Founded in 1991 as locksmith and safe engineers, TLS has since expanded
into electronic access control, CCTV, door automation and UPVC door repairs.
The business is integrating well into the Group and is well positioned to
contribute meaningfully, supported by its strong orderbook.
We continued to optimise our network of security centres to drive efficiencies
and synergies. Following the acquisition of Ben Lock & Safe in
Peterborough, operations were successfully consolidated with Croma's existing
Peterborough branch into a single security centre. With no competing locations
in the town, the consolidated site is well placed to retain the full customer
base of both businesses. In Southampton, the Portswood security centre was
merged with our nearby Shirley centre, a natural consolidation given their
close proximity. This decision was accelerated by the landlord of Portswood,
unexpectedly terminating the lease after 25 years.
Our experience at Portswood reinforces the strategic value of operating from
freehold properties. Freehold ownership provides long-term control over
established locations, flexibility to upgrade sites into modern Croma security
centres, cost stability and enhanced financial predictability. In addition, it
offers optionality to raise capital by leveraging the Group's freehold
portfolio if required. Southsea (Portsmouth), one of the Group's
highest-turnover stores, is a freehold property and underwent a significant
refurbishment in October 26. While the refurbishment resulted in a short-term
loss of sales during closure, these are expected to be more than recouped
through increased trading levels going forward.
Outlook
We have good visibility over a very healthy pipeline of acquisitions which we
expect will make excellent contributions to expanding the Group driving both
future sales and profitability. The work we have completed in the first half
of this year was essential to positioning the Company correctly for the future
and we are confident of our ability to meet the targets for the current
financial year.
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
31-Dec-25 31-Dec-24 30-Jun-25
Unaudited Unaudited Audited
6 months 6 months 12 months
Notes £000s £000s £000s
Revenue 4,994 4,580 9,633
Cost of sales (2,917) (2,537) (5,453)
Gross profit 2,077 2,043 4,180
Administrative expenses (1,941) (1,716) (3,643)
Other operating income 32 6 59
Operating profit 168 333 596
Analysed by:
Earnings before interest, tax, depreciation, impairment and amortisation of 436 572 1,166
intangible assets (EBITDA)
Amortisation (2) (30) (85)
Depreciation (266) (209) (485)
Operating profit 168 333 596
Financial expenses (19) (12) (32)
Interest receivable 103 135 261
Profit before tax 252 456 825
Tax (65) (146) (39)
Profit and total comprehensive income for the period attributable to owners of 187 310 786
the parent
Earnings per share 3
Basic earnings per share (pence) 1.35 2.25 5.72
Diluted earnings per share (pence) 1.35 2.25 5.71
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2025
31-Dec-25 31-Dec-24 30-Jun-25
Unaudited Unaudited Audited
6 months 6 months 12 months
£000s £000s £000s
Assets
Non-current assets
Goodwill 5,274 5,042 5,274
Other intangible assets 21 55 -
Property, plant and equipment 3,800 2,846 3,582
Right-of-use assets 452 496 525
Other receivables - 1,651 -
Total non-current assets 9,547 10,090 9,381
Current assets
Inventories 1,589 1,230 1,551
Trade and other receivables 2,116 2,202 3,161
Cash and cash equivalents 4,361 4,174 4,328
8,066 7,606 9,040
Total assets 17,613 17,696 18,421
Liabilities
Current liabilities
Trade and other payables (1,249) (1,576) (1,840)
Borrowings and lease liabilities (151) (114) (149)
(1,400) (1,690) (1,989)
Non-current liabilities
Provisions (112) (151) (111)
Deferred tax (174) (217) (174)
Lease liabilities (342) (420) (419)
Total non-current liabilities (628) (788) (704)
Total liabilities (2,028) (2,478) (2,693)
Net assets 15,585 15,218 15,728
Equity attributable to owners of the parent
Share capital 794 794 794
Treasury shares (929) (946) (929)
Share premium 6,150 6,133 6,150
Merger reserve 2,139 2,139 2,139
Capital redemption reserve 51 51 51
Retained earnings 7,380 7,047 7,523
Total equity 15,585 15,218 15,728
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
31-Dec-25 31-Dec-24 30-Jun-25
Unaudited Unaudited Audited
6 months 6 months 12 months
Note £000s £000s £000s
Cash (used)/generated from operating activities 4 (38) 222 634
Cash flows from investing activities
Purchase of subsidiaries, net of cash acquired - - (336)
Purchase of property, plant and equipment and intangible assets (433) (479) (1,288)
Proceeds on disposal of discontinued operations 825 2,538 3,363
Net cash from investing activities 354 2,281 2,373
Cash flows from financing activities
Payments to reduce lease liabilities (75) (56) (134)
Dividends paid (330) (316) (316)
Interest paid (19) (12) (32)
Interest income 103 135 261
Treasury shares sale proceeds - - 34
Net cash used in financing activities (321) (249) (187)
Net increase in cash and cash equivalents 33 2,032 2,186
Cash and cash equivalents at beginning of period 4,328 2,142 2,142
Cash and cash equivalents at end of period 4,361 4,174 4,328
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
Share capital Treasury shares Share premium Merger reserve Capital redemption reserve Retained earnings Total
equity
£000s £000s £000s £000s £000s £000s £000s
Balance at 1 July 2025 794 (929) 6,150 2,139 51 7,523 15,728
Profit for the period - - - - - 187 187
Dividends paid - - - - - (330) (330)
Balance at 31 December 2025 794 (929) 6,150 2,139 51 7,380 15,585
Balance at 1 July 2024 794 (946) 6,133 2,139 51 7,053 15,224
Treasury shares acquired - - - - - -
Profit for the period - - - - - 310 310
Dividends paid - - - - - (316) (316)
Balance at 31 December 2024 794 (946) 6,133 2,139 51 7,047 15,218
Balance at 1 July 2024 794 (946) 6,133 2,139 51 7,053 15,224
Treasury shares sold - 17 17 - - - 34
Profit for the year - - - - - 786 786
Dividends paid - - - - - (316) (316)
Balance at 30 June 2025 794 (929) 6,150 2,139 51 7,523 15,728
CROMA SECURITY SOLUTIONS GROUP PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
1. Basis of preparation
The interim financial information in this report has been prepared using
accounting policies consistent with UK-adopted international accounting
standards ("IFRS"). IFRS is subject to amendment and interpretation by the
International Accounting Standards Board (IASB) and the IFRS Interpretations
Committee and there is an ongoing process of review and endorsement by the UK
Endorsement Board. The financial information has been prepared on the basis of
IFRS that the Directors expect to be adopted by the UK and applicable as at 30
June 2026. As permitted, the Group has chosen not to adopt IAS 34 "Interim
Financial Statements" in preparing the interim financial information.
Statutory accounts
Financial information contained in this document does not constitute statutory
accounts within the meaning of section 434 of the Companies Act 2006 ("the
Act"). The statutory accounts for the year ended 30 June 2025 have been
filed with the Registrar of Companies. The report of the auditors on those
statutory accounts was unqualified, did not draw attention to any matters by
way of emphasis and did not contain a statement under section 498(2) or (3) of
the Act. The financial information for the six months ended 31 December 2025
and 31 December 2024 is unaudited.
Going concern
The interim financial report has been prepared on a going concern basis. The
Group's activities are funded by long-term equity capital and by cash
generated from trading. In considering the ability of the Group to meet its
obligations as they fall due, the Board has considered the expected trading
and cash requirements of the Group until the end of February 2027. The Board
continues to be positive about the retention of customers and the outlook of
its trading operations. Profit and cash flow projections support the Board's
view that the Group will meet its obligations as they fall due with the use of
cash surpluses from trading.
2. Accounting policies
The accounting policies applied by the Group in this interim report are
consistent with those applied by the Group in the audited consolidated
financial statements for the year ended 30 June 2025.
3. Earnings per share
Earnings per share is based upon the profit for the period and the weighted
average number of shares in issue and ranking for dividend. The following
reflects the profit and shares data used in the basic and diluted EPS
computations:
31-Dec-25 31-Dec-24 30-Jun-25
Unaudited Unaudited Audited
6 months 6 months 12 months
£000s £000s £000s
Earnings
Earnings from total operations for the purposes of basic and diluted earnings 187 310 786
per share being net profit attributable to equity shareholders
Number of shares (thousands)
Weighted average number of shares used in basic Earnings per Share 13,768 13,730 13,739
Weighted average number of shares used in diluted Earnings per Share 13,781 13,748 13,754
The calculation of diluted earnings per share assumes conversion of all
potentially dilutive ordinary shares, all of which arise from share options. A
calculation is performed to determine the number of share options that are
potentially dilutive based on the number of shares that could have been
acquired at fair value, considering the monetary value of the subscription
rights attached to the outstanding share options.
4. Cash generated from continuing operations
31-Dec-25 31-Dec-24 30-Jun-25
Unaudited Unaudited Audited
6 months 6 months 12 months
£000s £000s £000s
Operating profit 168 333 596
Depreciation and amortisation 267 295 570
(Increase) in inventories (38) (27) (167)
Decrease in trade and other receivables 163 78 55
(Decrease) in trade and other payables (499) (348) (223)
Corporation tax paid (99) (109) (197)
Cash (used)/generated from operating activities (38) 222 634
5. Subsequent events
As part of the Group's ongoing strategy to expand its network of security
centres, on 2 January 2026 the Group acquired 100% of the share capital of TLS
Security Systems Limited. The business, which operates a security centre in
Taunton, Somerset, was acquired for a consideration of £0.47 million on a
cash-free, debt-free basis comprising an initial payment of £0.28 million and
a deferred balance of £0.19 million, payable subject to the achievement of
earnout targets over the 12 months following completion. In addition, the
Group purchased the associated freehold property from the vendor's pension
fund for a cash consideration of £0.2 million.
6. Financial information
The Board of Directors approved this interim report on 25 February 2026.
A copy of this report can be obtained by writing to the Chief Financial
Officer at our registered office; Unit 7 & 8, Fulcrum 4, Solent Way,
Whiteley, Hampshire PO15 7FT or from our website at www.cssgplc.com
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