REG - Croma Sec. Sol. Grp - Interim Results to 31 December 2015 <Origin Href="QuoteRef">CSSG.L</Origin>
RNS Number : 0847QCroma Security Solutions Group PLC25 February 2016CROMA SECURITY SOLUTIONS GROUP PLC
(LON:CSSG)
INTERIM RESULTS FOR SIX MONTHS TO 31 DECEMBER 2015
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 2015.
HIGHLIGHTS
Revenue up 4% to 8.6M (six months to 31 December 2014: 8.3M)
Acquisition of Access Locksmiths Limited on 8 December 2015.
4m of new turnover from the acquisition and new contract wins.
Net Assets 10.3M (31 December 2014: 9.1M)
Gross Profit: 1.91M (six months to 31 December 2014: 1.96M)
EBITDA* 0.32M (six months to 31 December 2014 0.42M)
Dividend of 0.4p per share declared and paid in January 2016 (2104: 0.3p per share)
* Earnings before interest, tax, depreciation, and amortisation.
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
Paul Shackleton / Nick Prowting Tel: +44 (0)207 220 1666
Chairman's Statement
I am pleased to report the financial results for the six months to 31 December 2015 which demonstrate steady and consolidating performance for the Group, and a solid start to this financial year. Against a background of a significant acquisition, development costs and expansion we have generated good profits and are well set to meet our full year forecast.
During the period turnover increased by 4% to 8.62M. This is very pleasing as it is based on some very strong new client wins, and is measured against an exceptional first half of 2014 when we had 0.5M of revenue from the Commonwealth Games. Operating profit margin has returned to expected levels at 2.1%, with EBITDA of 0.32M (2014 H1 0.42M). We have experienced additional costs in the creation of our branch in Abu Dhabi, and also in the roll-out of FastVein Time and Attendance. We foresee an even stronger H2, based on the new contract wins that were announced in November.
These results do not however show our significant achievements this period; the 3M pa of new guarding contracts, 0.8M of new security installation contracts, and the 2M acquisition of Access Key and Lock of Fareham. This adds up to 4M to annual turnover and in excess of 0.5M of operating profit to our core business. The Group is absolutely focussed on delivering growth both organically and by acquisition. Our core activities are Premium ex-military manned guarding, CCTV, intruder systems, fire systems, biometric identification, access control and a now enlarged locksmiths operation. 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 8.62M against 8.31M in H1 2014.
The group has seen margins return to expected levels and has been able to hold its line on pricing in a very competitive market. Overheads have been broadly steady at 1.75M (2014 1.69M), with only a slight increase in salaries as the sales team has continued to be reinforced. Vigilant continues to find success in its pricing model, with turnover of 6.6M for the half year (2014: 6.4M). Systems has seen a return to growth after a slow summer, and Locksmiths has now joined with the Group's recent acquisition Access Key and Lock to form a new larger entity.
The principal movements on the balance sheet have been occasioned by the acquisition of Access Key and Lock Limited on 8th December. The purchase, for 1M in shares (2,027,027 shares at 49.3p) and 600,000 in cash, with up to 400,000 to follow, was for 100% of the share capital of the company and has resulted in Goodwill and Intangibles of 1.1M being recognised. The cash element of the consideration was funded from existing resources, and has led to a temporary erosion of the Group's cash position.
Outlook
This has been an excellent half year for the Group, delivering the acquisition of Access Key and Lock as the first stage in a vision to build a locksmith operation with genuine national coverage. We have also seen the roll out of FastVein Time and Attendance, which is gathering momentum in the marketplace, as well as increasing take-up of our bespoke schools package of FastVein for registration and access control.
We have opened our branch office in Abu Dhabi as Phase I of a push into the Gulf region, and have secured valuable new contracts with the NHS worth over 1m per annum.
The Group is now very well placed to build on a solid operational base, and we have the key people and assets in place to deliver continuing growth. Our dividend policy continues, and we remain committed to pursuing excellence in security provision in order to deliver value to shareholders.
Sebastian Morley
Chairman
24 February 2016
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR 6 MONTHS ENDED 31 DECEMBER 2015
6 months ended
6 months ended
Year
Ended
31 December
2015
31 December
2014
30 June
2015
unaudited
unaudited
audited
Notes
Revenue
1
8,614,249
8,299,906
15,829,689
Cost of sales
(6,706,099)
(6,334,021)
(12,218,705)
Gross profit
1,908,150
1,965,885
3,609,984
22.2%
23.7%
22.8%
Administrative expenses
(1,746,733)
(1,692,346)
(3,245,587)
Other operating income
12,140
10,200
26,578
Operating profit
173,557
283,739
390,975
Analysed as:
Earnings before interest, tax, depreciation, and amortisation
320,558
418,212
658,668
Depreciation
(46,074)
(49,525)
(80,821)
Amortisation
(100,927)
(84,948)
(184,872)
Operating profit
173,557
283,739
390,975
Finance expense costs
(13,853)
(14,229)
(32,138)
Profit before tax
159,704
269,510
358,837
Tax
(31,941)
(53,902)
(845)
Profit for the year from continuing operations
127,763
215,608
357,992
Profit and total comprehensive profit for the year attributable to owners of the parent
127,763
215,608
357,992
Earnings per share
2
Basic earnings per share (pence)
- Earnings from continuing operations
0.85
1.45
2.40
- (Loss)/earnings from discontinued operations
0
0.00
0.00
- Total
0.85
1.45
2.40
Diluted earnings per share (pence)
- Earnings from continuing operations
0.85
1.44
2.40
- (Loss)/earnings from discontinued operations
0
0.00
0.00
- Total
0.85
1.44
2.40
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2015
31 December 2015
31 December 2014
30 June 2015
unaudited
unaudited
audited
Assets
Non-current assets
Goodwill
6,705,759
5,866,961
5,866,961
Other Intangible assets
1,862,419
1,056,342
1,041,323
Property, plant and equipment
372,245
400,702
331,718
8,940,423
7,324,005
7,240,002
Current assets
Inventories
799,521
238,381
237,169
Trade and other receivables
3,240,447
2,850,751
2,420,729
Cash and cash equivalents
263,381
679,185
839,373
4,303,349
3,768,317
3,497,271
Total assets
13,243,772
11,092,322
10,737,273
Liabilities
Non-current liabilities
Deferred tax
(244,033)
(299,474)
(244,033)
Trade and other payables
(106,267)
(29,025)
(39,956)
(350,300)
(328,499)
(283,989)
Current liabilities
Trade and other payables
(737,773)
(535,098)
(330,904)
Other taxes & Social Security
(865,239)
(747,337)
(634,496)
Accruals and deferred income
(635,471)
(387,109)
(293,040)
Borrowings
(489,632)
-
-
(2,728,115)
(1,669,544)
(1,258,440)
Total liabilities
(3,078,415)
(1,998,043)
(1,542,429)
Net assets
10,165,357
9,094,279
9,194,844
Issued capital and reserves attributable to owners of the parent
Share capital
844,658
743,307
743,307
Share premium
6,128,925
5,230,276
5,230,276
Merger reserve
2,139,454
2,139,454
2,139,454
Retained earnings
624,440
556,141
653,927
Undistributable Reserves
422,322
422,322
422,322
Other reserves
5,558
2,779
5,558
Total equity
10,165,357
9,094,279
9,194,844
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR 6 MONTHS ENDED 31 DECEMBER 2015
6 months
ended
6 months
ended
Year
ended
31 December
2015
31 December
2014
30 June
2015
unaudited
unaudited
audited
Cash flows from operating activities
Profit/(loss) before taxation
159,704
269,510
358,837
Depreciation, and amortisation
147,001
134,473
265,693
(Profit)/loss on sale of plant and equipment
-
(194)
(2,119)
Net changes in working capital
(692,627)
(452,696)
(285,495)
Taxes paid
(83,460)
Financial expenses
13,853
14,229
32,138
Net cash generated/(used) from operations
(372,069)
(34,678)
285,594
Cash flows from Investing activities
Purchase of subsidiary net of cash acquired
(605,079)
Purchase of property, plant and equipment
(112,902)
(71,552)
(133,419)
Proceeds on disposal of property, plant and equipment
-
12,000
48,517
Net cash generated/(used) in investing activities
(717,981)
(59,552)
(84,902)
Cash flows from financing activities
Hire purchase payments
33,200
(4,294)
(34,645)
Advances/(repayments) on invoice discounting facility
489,632
(112,049)
(166,682)
Repayment of borrowings
-
(44,598)
Interest paid
(8,774)
(9,935)
(15,087)
Net cash (used) in financing activities
514,058
(126,278)
(261,012)
Net (decrease)/increase in cash and cash equivalents
(575,992)
(220,508)
(60,320)
Cash and cash equivalents at beginning of period
839,373
899,693
899,693
Cash and cash equivalents at end of the period
263,381
679,185
839,373
NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR 6 MONTHS TO 31 DECEMBER 2015
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 2015 financial statements. The financial information for the six months ended 31 December 2015 and the six months ended31 December 2014 are unaudited and have not been reviewed by the Group's auditor.
The financial statements for the year ended 30 June 2015, 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/(loss) 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 2015
31 December 2014
30 June 2015
unaudited
unaudited
Audited
Numerator
Profit/(loss) for the year on continuing operations and used in basic EPS
127,763
215,608
357,992
Profit for the period on discontinued operations and used in basic and diluted EPS
-
-
-
Denominator
Weighted average number of shares used in basic EPS
15,120,900
14,866,138
14,866,138
Effects of:
- Company Share Option Scheme
43,000
64,000
Weighted average number of shares used in diluted EPS
15,163,900
14,930,138
14,866,138
NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR 6 MONTHS TO 31 DECEMBER 2015
(Continued)
3. Taxation
Taxation has been provided for at 20.0%
4. Dividends
The Board approved an interim dividend for the year of 0.4 pence per share (2014: 0.3p).
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 24 February 2016.
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 RNSThe company news service from the London Stock ExchangeENDIR LFFEIFIISFIR
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