REG - Croma Sec. Sol. Grp - Interim Results <Origin Href="QuoteRef">CSSG.L</Origin>

Croma Security SolutionsAnnouncement

26/02/2015 07:13

RNS Number : 9087F
Croma Security Solutions Group PLC
26 February 2015
CROMA SECURITY SOLUTIONS GROUP PLC
(LON:CSSG)
INTERIM RESULTS FOR SIX MONTHS TO 31 DECEMBER 2014
Croma Security Solutions Group plc (the "Group") the AIM listed total security services provider announces its unaudited interim results for the six months to 31 December 2014.
HIGHLIGHTS
 Revenue up 14% to 8.3M (six months to 31 December 2013: 7.3M)
 Gross Profit: 1.96M (six months to 31 December 2013: 1.82M)
 EBITDA* 0.42M (six months to 31 December 2013: 0.3M)
 Diluted EPS up by 92% to 1.44p (six months to 31 December 2013: 0.75p)
 Net Assets 9.1M (31 December 2013: 8.7M) 
 Cash 0.68M (31 December 2013: 0.84M)
 Maiden dividend declared of 0.3p per share
*Earnings before interest, tax, depreciation, amortisation and acquisition costs
For further information visit www.cssgroupplc.com or contact:
Croma Security Solutions Group PLC
Sebastian Morley, Chairman Tel: +44 (0)7768 006 909
WH Ireland Limited
Adrian Hadden / Mark LeonardTel: +44 (0)207 220 1666
Chairman's Statement
I am pleased to report the financial results for the six months to 31 December 2014 which demonstrate an increase in turnover and profitability for the Group.
During the period, turnover increased by 14% to 8.30M. We are reinforcing our message of quality of service across the Group and we are seeing excellent levels of customer retention as well as targeted new client wins. Profit Before Tax nearly doubled to 270,000 (H1 2013: 144,000) with EBITDA of 0.42M (H1 2013: 0.3M).
Our core activities are Premium ex-military manned guarding, CCTV, intruder systems, fire systems, biometric identification and access control. The focus of the Group is to deliver sustainable growth, from clients who recognise the value of coordinated high quality security services with the opportunities presented by our market leading technologies, Fastvein and Vehicle Impact Protection System (VIPS). We have strengthened our sales team, enhanced our on-line presence, and are looking to promote Croma Security to a wider market at home and abroad.
Financial Review
Turnover increased to 8.30M against 7.31M in H1 2013.
The group has seen continued pressure on margins but has held the line and kept Gross Profit broadly steady at 23.8% (H1 2013: 24.8%). Vigilant has been able to hold its margin at historic levels, however Systems and Locksmiths are still experiencing a very competitive marketplace.
Administrative expenses have been steady at 1.69M (H1 2013: 1.67M) and include the costs relating to the final stages of the development of FastVein. This system is being rolled out and further costs will be incurred relating to module developments and enhancements.
Debtor days at 31 December were steady at 51 (2013: 50). Credit control remains strong, and bad debt expense has been minimal, however the increase in trading has seen an increase in working capital, with net current assets rising to 2.10M (30 June 2014: 1.84M)
Outlook
The Group is now performing at the level it should be and has identified opportunities to increase its client base of blue chip businesses. The last few years of development and restructuring have been worthwhile, and put the Group in a position to maintain a steady push for organic growth.
The Directors are looking closely at opportunities to establish a presence overseas and take our integrated solutions, including VIPS and FastVein, where possible, into new markets.
The Board was pleased to be able to declare an interim dividend in December, and looks forward to be able to declare a final dividend later in the year on the back of continued good trading.
The Group's efforts in creating a stable platform for growth across the spectrum has enabled the Board to look at our future prospects with confidence.
Sebastian Morley
Chairman
25 February 2015


CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR 6 MONTHS ENDED 31 DECEMBER 2014


6 months ended

6 months ended

Year
Ended



31 December
2014

31 December 
2013

30 June
2014



unaudited 

unaudited 

audited


Notes










Revenue
1
8,299,906

7,307,794 

14,813,444 








Cost of sales

(6,334,021)

(5,492,511)

(11,150,460)








Gross profit

1,965,885

1,815,283 

3,662,984 








Administrative expenses

(1,692,346)

(1,666,518)

(3,347,618)
Other operating income

10,200

10,200 

21,453 
Operating profit

283,739

158,965 

336,819 

Analysed as:







Earnings before interest, tax, depreciation, and amortisation 

418,212

304,966 

620,863 

Depreciation

(49,525)

(53,565)

(99,172)

Amortisation

(84,948)

(92,436)

(184,872)

Operating profit

283,739

158,965

336,819 








Finance expense costs

(14,229)

(15,374)

(32,235)



 

 

 
Profit before tax

269,510

143,591

304,584 








Tax

(53,902)

(32,308)

15,973 
Profit for the year from continuing operations
215,608

111,283

320,557 
Profit and total comprehensive profit for the year attributable to owners of the parent

215,608

111,283

320,557 







Earnings per share
2





Basic earnings per share (pence)






- Earnings from continuing operations

1.45 

0.75 

2.16 
- (Loss)/earnings from discontinued operations
0.00 

0.00 

0.00 
- Total

1.45 

0.75 

2.16 
Diluted earnings per share (pence)






- Earnings from continuing operations

1.44 

0.75 

2.16 
- (Loss)/earnings from discontinued operations
0.00 

0.00 

0.00 
- Total

1.44 

0.75 

2.16 
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2014

31 December 2014
31 December 2013
30 June 2014

unaudited 
unaudited 
audited







Assets
Non-current assets






Goodwill

5,866,961

5,866,961 

5,866,961 
Other Intangible assets

1,056,342

1,233,726 

1,141,290
Property, plant and equipment

400,702

364,936 

329,356 


7,324,005

7,465,623 

7,337,607 
Current assets






Inventories
238,381

211,559 

222,958 

Trade and other receivables
2,850,751

2,431,326 

2,485,885 

Cash and cash equivalents
679,185
3,768,317
836,954 
3,479,839 
899,693 
3,608,536 







Total assets

11,092,322

10,945,462

10,946,143 
Liabilities






Non-current liabilities






Deferred tax
(299,474)

(314,708)

(299,474)

Trade and other payables
(29,025)

(19,822)

(5,263)

Provisions
-
(328,499)
(1,422)
(335,952)
-
(304,737)







Current liabilities






Trade and other payables
(535,098)

(487,658)

(378,172)

Other taxes & Social Security
(747,337)

(934,686)

(777,377)

Accruals and deferred income
(387,109)

(408,499)

(440,504)

Borrowings
-
(1,669,544)
(112,049)
(1,942,892)
(166,682)
(1,762,735)







Total liabilities

(1,998,043)

(2,278,844)

(2,067,472)
Net assets

9,094,279

8,666,618 

8,878,671 







Issued capital and reserves attributable to owners of the parent






Share capital

743,307 

743,307 

743,307 
Share premium

5,230,276 

5,230,276 

5,230,276 
Merger reserve

2,139,454 

2,139,454 

2,139,454 
Retained earnings

556,141

131,259 

340,533 
Undistributable Reserves

422,322

422,322 

422,322
Other reserves

2,779

- 

2,779
Total equity

9,094,279

8,666,618 

8,878,671 
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF CASHFLOWS FOR 6 MONTHS ENDED 31 DECEMBER 2014


6 months
ended

6 months
ended

Year
ended


31 December
2014

31 December
2013

30 June
2014









unaudited 

unaudited 

audited


 


Cash flows from operating activities






Profit/(loss) before taxation

269,510

143,591 

304,584 
Depreciation, and amortisation

134,473

146,001 

284,044 
(Profit)/loss on sale of plant and equipment

(194)

(2,887)

8,103
Movement on provisions

-

(2,697)

-
Net changes in working capital

(452,696)

324,881 

37,286
Financial expenses

14,229

15,374 

32,235 
Taxes paid



- 

-
Net cash generated/(used) from operations

(34,678)

624,263 

666,252 







Cash flows from Investing activities






Purchase of property, plant and equipment

(71,552)

(39,200)

(49,589)
Proceeds on disposal of property, plant and equipment

12,000

9,500 

14,100 
Net cash generated/(used) in investing activities

(59,552)

(29,700)

(35,489)







Cash flows from financing activities






Hire purchase payments

(4,294)

-

(23,742)
(Repayments)/advances on invoice discounting facility

(112,049)

(424,100)

(358,107)
Repayment of borrowings





-
Interest paid 

(9,935)

(11,368)

(27,079)
Net cash (used) in financing activities

(126,278)

(435,468)

(408,928)







Net (decrease)/increase in cash and cash equivalents

(220,508)

159,096 

221,835
Cash and cash equivalents at beginning of period

899,693

677,858 

677,858 
Cash and cash equivalents at end of the period

679,185

836,954 

899,693 
NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR 6 MONTHS TO 31 DECEMBER 2014
1. Basis of preparation
The financial information in the half yearly report has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union ("IFRS").
The principal accounting policies in this half yearly report are unchanged from those applied in the 2014 financial statements. The financial information for the six months ended 31 December 2014 and the six months ended 31 December 2013 are unaudited and have not been reviewed by the Group's auditor.
The financial statements for the year ended 30 June 2014, which were prepared in accordance with IFRS, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, have been delivered to the Registrar of Companies. The auditors' report on these accounts was unqualified and did not contain a statement under sections 498(2) and 498(3) of the Companies Act 2003.
While the financial information in this half yearly report is consistent with the recognition and measurement principles of adopted IFRS, it does not comply with the requirements of IAS34 Interim Financial Reporting nor does it constitute statutory accounts within the meaning of the Companies Act 2006.
2. 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 share data used in the basic and diluted EPS computations:

6 months ended

6 months ended

Year ended

31 December 2014

31 December 2013

30 June 2014

unaudited 

unaudited 

Audited



Numerator





Profit/(loss) for the year on continuing operations and used in basic EPS
215,608

111,283 

320,957 






Profit/(loss) used in diluted EPS on continuing operations
215,608 

111,283 

320,957 





Profit for the period on discontinued operations and used in basic and diluted EPS
- 

- 

- 
Denominator




Weighted average number of shares used in basic EPS
14,866,138 

14,866,138 

14,866,138 
Effects of:




- Company Share Option Scheme
64,000

- 

5,962 
Weighted average number of shares used in diluted EPS
14,930,138 

14,866,138 

14,872,100 
3. Taxation
Taxation has been provided for at 22.0%
4. Dividends
The Board approved an interim dividend for the year of 0.3 pence per share (2013: Nil).
This dividend was paid after the date of these statements, on 8 January 2015.
5. Financial Information
The Board of Directors approved this interim report on 25 February 2015.
A copy of this report can be obtained by writing to the Company Secretary at our registered office; Unit 6 Fulcrum 4, Solent Way, Whiteley, Hampshire PO15 7FT or from our website at www.cssgroupplc.com

This information is provided by RNS
The company news service from the London Stock Exchange
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