REG - Croma Sec. Sol. Grp - Interim Results to 31 December 2016 <Origin Href="QuoteRef">CSSG.L</Origin>

Croma Security SolutionsAnnouncement

01/03/2017 07:06

RNS Number : 1249Y
Croma Security Solutions Group PLC
01 March 2017
Croma Security Solutions Group Plc
("CSSG", the "Company" or the "Group")
Interim Results for the Six Months to 31 December 2016
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 2016.
HIGHLIGHTS
 Revenue up 29% to 11.2M (six months to 31 December 2015: 8.6M)
 Net Assets 10.2M (31 December 2015: 9.95M) 
 Gross Profit: 2.03M (six months to 31 December 2015: 1.72M) 
 EBITDA* 0.44M (six months to 31 December 2015 0.27M)
 Interim dividend of 0.5p per share (2015: 0.4p per share)
* Earnings before interest, tax, depreciation, and amortisation. 
For further information visit www.cssgroupplc.com or contact:
Croma Security Solutions Group Plc  07768 006 909
Sebastian Morley (Chairman)
WH Ireland Limited0207 220 1666
(Nominated Adviser and Broker)
Paul Shackleton
Nick Prowting
Chairman's Statement
I am pleased to report the financial results for the six months to 31 December 2016. These have seen a highly pleasing increase in turnover, gross profit and EBITDA.
The Group has gained new clients across all of its subsidiary divisions. The Croma Vigilant contract wins continue apace with clients giving a seal of approval to our ex-military approach to service delivery. The major utility company contract win for Croma Locksmiths is highly significant in its size and bearing on other utilities having to follow a new regulatory regime. Our FASTVEIN product in Croma Security is gaining traction and clients and we see it further developing in the coming months.
We are likewise pleased to maintain our progressive dividend policy.
The idea of a highly specialised total security group is forming up well, our brand is becoming recognised and clients are seeing the benefits of coming to a single service partner for all their needs. It has been a good six months for the Group.
Financial Review
Revenue increased by 2.6M against the first half of 2015, with pleasing growth across our three main operating divisions with Vigilant guarding at 8.3M (2015:6.7M), Croma Security Systems at 1.4M (2015:1.2M) and Croma Locksmiths at 1.5M (2015:0.8M).
The growth in our guarding division reflects growth from our existing client base but also from new contract wins particularly with the NHS, however we find gross margins have been squeezed in a continuingly competitive market for new tenders.
In our Security Systems division, the growth has been driven from our existing business of CCTV, intruder systems, fire systems, but we continue to develop our FASTVEIN offering with the possibility of further revenue growth in the second half.
In our Locksmiths division, we have seen revenue growth from the acquisition in December 2015, however on like-for-like basis revenue has fallen by 10%. In the second half, we expect to see an improvement as revenues from our recent water utility contract win develop.
The reduction in cash and cash equivalents by 96K is linked to revenue growth in Vigilant where we currently finance the payment of guard's wages before payment from customers, however this is as expected and has been funded out of our existing borrowing facilities.
Dividend
The Board is declaring an interim dividend of 0.5p (2015: 0.4p) per share, to be paid on 7 April 2017 to shareholders with an ex-dividend date of 9 March 2017 and an associated record date of 10 March 2017. 
Outlook
This has been a strong start to the year, we are building a momentum and look forward to updating shareholders in the coming period.
Sebastian Morley
Chairman
28 February 2017
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
FOR 6 MONTHS ENDED 31 DECEMBER 2016
6 months ended
6 months ended
Year
Ended
31-Dec-16
31-Dec-15
30-Jun-16
unaudited 
unaudited
restated
audited
Notes
000s
000s
000s
Revenue
1
11,154 
8,614 
19,031 
Cost of sales
(9,120)
(6,889)
(15,141)
Gross profit
2,034 
1,725 
3,890 
18.24%
20.03%
20.44%
Administrative expenses
(1,789)
(1,612)
(3,675)
Other operating income
6 
12 
23 
Operating profit
251 
125 
238 
Analysed as:
Earnings before interest, tax, depreciation, and amortisation 
436 
272 
588 
Depreciation
(64)
(46)
(109)
Amortisation
(121)
(101)
(241)
Operating profit
251 
125 
238 
Finance expense costs
(27)
(14)
(61)
Profit before tax
224 
111 
177 
Tax
(38)
(22)
(24)
Profit for the year from continuing operations
186 
89 
153 
Profit and total comprehensive profit for the period attributable to owners of the parent
186 
89 
153 
Earnings per share
2
Basic earnings per share (pence)
- Earnings from continuing operations
1.09
0.59
0.96
- (Loss)/earnings from discontinued operations
0
0
0
- Total
1.09
0.59
0.96
Diluted earnings per share (pence)
- Earnings from continuing operations
1.09
0.59
0.95
- (Loss)/earnings from discontinued operations
0
0
0
- Total
1.09
0.59
0.95
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
AT 31 DECEMBER 2016
31-Dec-16
31-Dec-15
30-Jun-16
unaudited 
unaudited
restated
audited
000s
000s
000s
Assets
Non-current assets
Goodwill
7,213 
7,213 
7,213 
Other Intangible assets
1,280 
1,541 
1,401 
Property, plant and equipment
429 
372 
442 
8,922 
9,126 
9,056 
Current assets
Inventories
684 
683 
643 
Trade and other receivables
3,936 
3,193 
3,446 
Cash and cash equivalents
296 
263 
392 
4,916 
4,139 
4,481 
Total assets
13,838 
13,265 
13,537 
Liabilities
Non-current liabilities
Deferred tax
(286)
(341)
(303)
Trade and other payables
(327)
(306)
(140)
(613)
(647)
(443)
Current liabilities
Trade and other payables
(2,261)
(2,173)
(2,435)
Borrowings
(759)
(490)
(639)
(3,020)
(2,663)
(3,074)
Total liabilities
(3,633)
(3,310)
(3,517)
Net assets
10,205 
9,955 
10,020 
Issued capital and reserves attributable to owners of the parent
Share capital
845 
845 
845 
Share premium
6,129 
6,129 
6,129 
Merger reserve
2,139 
2,139 
2,139 
Retained earnings
1,082 
836 
899 
Other reserves
10 
6 
8 
Total equity
10,205 
9,955 
10,020 
CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF CASHFLOWS 
FOR 6 MONTHS ENDED 31 DECEMBER 2016
6 months
6 months
Year
ended
ended
ended
31-Dec-16
31-Dec-15
30-Jun-16
unaudited 
unaudited
restated
audited
000s
000s
000s
Cash flows from operating activities
Profit/(loss) before taxation
224 
111 
177 
Depreciation, and amortisation
185 
147 
350 
(Profit)/loss on sale of plant and equipment
- 
- 
10 
Net changes in working capital
(640)
(644)
(672)
Taxes paid
- 
- 
(36)
Financial expenses
27 
14 
61 
Net cash generated/(used) from operations
(204)
(372)
(110)
Cash flows from Investing activities
Purchase of subsidiary net of cash acquired
-
(712)
(712)
Purchase of property, plant and equipment
(54)
(53)
(73)
Proceeds on disposal of property, plant and equipment
3 
47 
67 
Net cash generated/(used) in investing activities
(51)
(718)
(718)
Cash flows from financing activities
Hire purchase payments
(34)
33 
(38)
Advances/(repayments) on invoice discounting facility
220 
490 
539 
Repayment of borrowings
- 
- 
-
Dividends
(59)
Interest paid 
(27)
(9)
(61)
Net cash (used) in financing activities
159 
514 
381 
Net (decrease)/increase in cash and cash equivalents
(96)
(576)
(447)
Cash and cash equivalents at beginning of period
392 
839 
839 
Cash and cash equivalents at end of the period
296 
263 
392 
NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR 6 MONTHS TO 31 DECEMBER 2016
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 2016 financial statements. The financial information for the six months ended 31 December 2016 and the six months ended31 December 2015 are unaudited and have not been reviewed by the Group's auditor.
The financial information for the six month ended 31 December 2015 has been restated to reflect the correction of errors as described in note 28 of the 2016 financial statements.
The financial statements for the year ended 30 June 2016, 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 2016
31 December 2015
30 June 2016
unaudited 
unaudited
restated 
audited
Numerator
Profit/(loss) for the year on continuing operations and used in basic EPS
( thousands)
186
90
153
Profit for the period on discontinued operations and used in basic and diluted EPS ( thousands)
- 
- 
- 
Denominator
Number of shares (thousands)
Weighted average number of shares used in basic EPS
16,893
15,121 
16,005 
Weighted average number of shares used in diluted EPS
16,893
15,140
16,012 
3. Taxation
Taxation has been provided for at 20.0%
4. Dividends
The Board approved an interim dividend for the year of 0.5 pence per share (2015: 0.4p).
5. Financial Information
The Board of Directors approved this interim report on 28 February 2017.
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

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