REG - Croma Sec. Sol. Grp - Trading Statement

Croma Security SolutionsAnnouncement

09/07/2025 07:00

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RNS Number : 2581Q  Croma Security Solutions Group PLC  09 July 2025

 

9 July 2025

Croma Security Solutions Group Plc

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

Trading Statement

On Track and Investing in People and Security Centre Network

Croma Security Solutions Group plc (AIM:CSSG) is pleased to announce the
following update on trading for the twelve months to 30 June 2025 ("FY 2025").

FY 2025

Croma has completed a successful year, delivering meaningful growth driven by
organic sales across both divisions and the expansion of its security network.
The Group's trading performance for the year reflects this progress, and the
Group expects to report a 10% increase in revenues to £9.6 million compared
to the prior year and consequently the Company expects to meet market
expectations for FY 2025.

Following two acquisitions and the purchase of three freehold security
centres, the Group remains in a strong financial position with cash balances
of £4.3 million as of 30 June 2025 (31 December 2024: £4.2 million) and no
outstanding borrowings. In June 2023, the Group sold its manned guarding
division, Vigilant for £6.5 million. The consideration for the sale is
received in staged payments, to date Croma has received £4.9 million, with a
further £1.7 million to be received quarterly by June 2026.

Our strategy remains firmly focused on reinvesting the proceeds from the
Vigilant sale to establish a leading national security brand. This is being
achieved through an acquisition-led expansion of our security centre network.
We target modestly valued, independent locksmith stores, converting them into
comprehensive security centres with an enhanced product offering. This
approach drives cost efficiencies and significantly increases earnings
potential.

Acquisition-led Roll-Out

During FY 2025, the Group made two acquisitions, acquiring locksmith stores in
Leeds and Peterborough. Both are performing to plan since being acquired.
Going into FY 2026, the Company has a strong pipeline of potential
acquisitions lined up which has been expanded significantly over the last 6
months. The target is to acquire between 3-5 new stores per annum. To deliver
on this ambition, the Group is investing in expanding its senior leadership
team in operations and sales. While these additions may hold back Group
profitability in the short-term, they are essential to strengthening
operational management, providing critical support to the existing executive
team and enabling further acquisition-led growth in the business.

The Group is developing a balanced portfolio of security centres which
currently stands at a mix of 9 freehold and 8 leasehold properties. The
Company believes freeholds are beneficial as they ensure long-term control,
provide potential to generate rental income from residential space and give
the flexibility to upgrade the buildings to suit the business. In the year
under review, Croma acquired three freehold sites in Leeds as part of the
Meridian acquisition and two existing Group stores in Worthing and Shirley
(Southampton).

Outlook

Croma remains financially strong, with a clear growth strategy and a proven
track record of delivery. While market conditions remain challenging due to
broader consumer and government pressures, our solid proposition is
underpinned by loyal, long-term customer bases at each security centre and a
steadily expanding geographic presence.

 

 

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

 

Croma Security Solutions Group
Plc
Tel: +44 (0)1489 566 166

Roberto Fiorentino, CEO

Teo Andreeva, CFO

 

Zeus
 
              Tel: +44 (0)207 220 1666

(Nominated Adviser and Broker)

Mike Coe

James Bavister

 

Novella
 
          Tel: +44 (0)203 151 7008

Tim Robertson

Chris Marsh

Safia Colebrook

 

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 Groups 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 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 sale in
2023, Croma has added new businesses to its network, and has a strong pipeline
of further locksmiths 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.

 

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