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RNS Number : 7636F Croma Security Solutions Group PLC 03 November 2025
3 November 2025
Croma Security Solutions Group Plc
("CSSG", "Croma", "the "Company" or the "Group")
Final Results
Delivered on Target and Scaling the Company for the Future
Croma (AIM:CSSG), the AIM listed innovation and service-focused security
solutions provider, is pleased to announce its final results for the twelve
months to 30 June 2025 ("FY25" or the "Period").
Group Highlights
· Group revenue for the Period of £9.63 million, up 10% (FY24:
£8.74 million)
· EBITDA up 10% to £1.17 million (FY24: £1.06 million)
· EBITDA margin of 12.1% (FY24:12.1%)
· Acquired two locksmith and security businesses in Peterborough
and Leeds
· Strong balance sheet with no borrowings and cash of £4.3 million
as at 30 June 2025 (FY24: £2.14 million)
· Proposed final dividend of 2.4 p per share (FY24: 2.3 p)
Outlook
· Trading in FY26 is on track with the new stores performing well
· A further £1.24 million is due in staged payments by June 2026
as part of the consideration for the sale of Vigilant following the recent
£0.43 million payment in September 2025
· Expanded management team with key new hires to support
accelerated growth plan
· The pipeline of potential acquisitions had grown significantly,
positioning the Group well to meet its target of acquiring 3-5 stores per
annum
Q&A with CEO Roberto Fiorentino
Croma CEO, Roberto Fiorentino commented:
"I am pleased to report another successful year of growth for the Croma Group.
Our strategy of acquiring family-owned locksmith businesses and integrating
them into our network of security centres continues to drive profitability and
increase our scale. We have made, and will continue to make, significant
investments in expanding our management team, positioning the Company to
accelerate the pace of acquisitions and capitalise on the imminent pipeline of
opportunities. The next few months should see a run of acquisitions which
together with continued organic growth will deliver a step-up in turnover."
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)207 220 1666
(Nominated Adviser and Broker)
Mike Coe
James Bavister
Novella
Tel: +44 (0)203 151 7008
Tim Robertson
Chris Marsh
Safia Colebrook
CEO's Statement - "A year of steady growth"
Introduction
I am pleased to report another successful year for Croma Security Solutions,
with the Group delivering positive organic growth and a robust trading
performance, despite a challenging economic environment. This performance
underlines the resilience of our business model and the successful execution
of our strategy.
Security continues to be a priority for both businesses and consumers alike as
criminal activity remains an ongoing concern in daily life. Croma is
positioned to be part of the solution, focused on crime prevention, the
protection of individuals and property, and providing expert guidance on
security protocols and compliance with relevant laws. Reflecting this, our
total revenues grew by 10% with both our Fire & Security and Locksmiths
divisions contributing positively.
Strategy
Formulated two years ago following the divestment of Vigilant in 2023, we have
continued our growth strategy of establishing a national security network and
remained focused on strengthening our core operations and expanding our
network of Security Centres. Our balance sheet remains strong, with cash
proceeds from the sale of Vigilant being received steadily, supporting the
Group's ability to identify and acquire suitable locksmith stores for
conversion to becoming Croma security centres. The pipeline of potential
high-quality acquisition opportunities is expanding, driven by growing
recognition of the Croma brand as a credible acquirer within the locksmith
industry. This increased awareness has led to a rise in inbound enquiries. At
the same time, the executive team's ability to swiftly identify and evaluate
strategically aligned opportunities is further accelerating this growth.
The opportunity ahead lies in executing the stated strategy and scaling the
business to drive Group profitability. To realise this, it became evident that
the executive management team required additional support to capitalise on the
growing acquisition pipeline and deliver the targeted expansion rate of three
to five acquisitions per year. As a Board, we have committed to investing
further in talent, with additional senior hires in Operations, Sales, HR and
Administration.
Acquisitions
During the year under review, we completed two strategic acquisitions:
Meridian Security Systems Ltd in February 2025 for £150,000 and Benn Lock
& Safe in April 2025 for £200,000. In addition to the acquisition of
Meridian, we acquired the freehold retail property for a market value of
£275,000. Meridian is a well-established, family run locksmith business based
in Horsforth, Leeds, extending the Croma network presence in the North and is
in easy reach of the Group's security centre in Bury just 40 miles away. Benn
Lock & Safe, a well-established, Peterborough based locksmith and security
provider will be consolidated with our existing Croma Security Centre located
just two miles away, creating immediate cost savings and synergies. These
acquisitions not only expand our geographic reach but also enhance our service
capabilities and customer offering.
Following the acquisition of three freehold properties for £1.03 million, our
property portfolio now comprises of a positive balance of freehold and
leasehold properties. The Board believes that ownership of freehold properties
is a strategic advantage, providing long-term security, potential rental
income, and the flexibility to adapt premises to support the Group's evolving
operational needs. All freehold properties are currently unencumbered, which
gives us a valuable platform for raising investment capital, should future
opportunities require it.
The Croma model, which focuses on the integration of Locksmiths and Fire &
Security services through our network, is now firmly established across the
Group. With an aim of acquiring three to five locksmith businesses each year
and adding them into our network, we are moving into the next phase of growth.
The Board
I am also pleased to confirm the appointment of new Non-Executive Chairman,
John Wakefield, together with Andy Wonnacott as a Non-Executive Director. Both
John and Andy are highly experienced public company Board Directors and bring
considerable financial and commercial expertise to the business. Their
appointments will commence on 1 November 2025, following the decision by Jo
Haigh to step down from being the Chair and leave the Company in September and
Steve Naylor's decision to not seek re-election as a Non-Executive Director at
the upcoming AGM in December. We thank both Jo and Steve for their
contributions to the business and hope they have success in their future
endeavours. As part of their new roles John will also Chair the remuneration
committee and Andy will Chair the audit committee.
Dividend
Reflecting the ongoing strength of the business and our commitment to
delivering shareholder value, the Board will be proposing a dividend of 2.4p
for the year. Subject the approval of shareholders at the Annual General
Meeting to be held on 1 December 2025, the final dividend will be paid on 17
December 2025 to all shareholders on the register at the close of business on
5 December 2025. The shares will be marked ex-dividend on 4 December 2025.
Outlook
We have started the new financial year well, and with a very strong pipeline
of acquisition opportunities lined-up and close to completion, we expect these
new stores, as they are acquired and integrated into the business, will drive
a step-up in Group revenues.
Overall, I am excited about where we are as a business and, more importantly,
where we are heading. The next few months should see a run of acquisitions
which together with continued organic growth will deliver a step-up in
turnover. We have a proven strategy, a clear focus, and the resources in place
to deliver sustainable long-term growth.
Roberto Fiorentino - CEO
31 October 2025
Financial and Operational Review
The Directors present the Group Strategic Report for Croma Security Solutions
Group PLC and its subsidiary companies for the year ended 30 June 2025.
Group sales were up 10% to £9.63 million, (FY24 £8.74 million), reflecting
acquisitions made during the year as well as organic growth within the core
businesses of 5%.
Gross margin for the year was 43.4% (FY24: 45.8%). The reduction reflects a
stock adjustment for the acquired businesses to align with our existing
provision policy.
EBITDA on the trading businesses before central costs for the year was £1.92
million (FY24: £1.73 million), an increase of 11%. Adjusting for central
Group overheads, EBITDA was up 10.4% at £1.17 million (FY24: £1.06 million).
Group net profit from operations for the year was £0.79 million (FY24: £0.54
million), an increase of 46.3% and EPS increased by 44.8% to 5.72p (FY24:
3.95p).
The solid underlying cash generation enabled us to end the year with no
borrowings and cash and cash equivalents of £4.33 million (FY24: £2.14
million). Our cash position and no bank debt allow us to continue our stated
strategy of acquiring locksmiths and building out our security centres network
where there is scope to enhance the offering and deliver synergies.
Croma Locksmiths
Croma Locksmiths delivers comprehensive security solutions to both commercial
and residential customers. As of the financial year end, the business operated
18 centres. Following the addition of two new sites during the year, a
strategic post-year-end consolidation of the two Peterborough locations and
two of the three Southampton branches has since reduced the total number of
centres to 16. This streamlined footprint is expected to enhance operational
efficiency, reduce overheads, and improve service delivery across the network.
The division recorded a good trading period with sales up 10% to £5.62
million (FY24: £5.10 million, and EBITDA of £1.12 million also up 12% from
£1.00 million.
The security centres are all former locksmith stores and have been converted
into a network, servicing not only local communities but also national
accounts. Larger commercial customers within this division encompass a broad
range of industries including travel, leisure, utilities, housing
associations, student housing, healthcare and defence.
Demand continues to be driven by replacement and upgrade cycles, heightened
safety concerns, and innovation through technology partnerships such as
ASSA/Abloy electronic and mechanical locking solutions and ILOQ. The
day-to-day sales over the counter in the individual security centres are made
up of relatively low costs items such as locks, padlocks, key cutting services
and security fittings. Of the division's principal sectors, retail, FM,
housing associations, healthcare and utilities generated the most activity
during the year under review.
The innovative mobile phone powered door lock called ILOQ, is a popular choice
in the student accommodation market. Croma is a preferred supplier of ILOQ in
the UK and continues to develop this enterprising product across the UK.
Known for its well-established customer base built from decades of consistent
and high-quality service to individuals and businesses. The division acts as a
natural gateway to our Fire & Security services, providing an integrated
solution for our customers. Typically, corporate security spend allocates
around 20% to locksmith services and 80% to Fire & Security, a dynamic
that positions us well for cross-selling opportunities.
Croma Fire and Security
Croma Fire and Security provide a full range of electronic security solutions
and services to commercial and individual customers and has strong commercial
relationships across the public health and hospitality sectors.
Croma Fire and Security recorded sales for the year of £4.09 million (FY24:
£3.80 million) up 8%. EBITDA for the period was up 11% to £0.81 million
(FY24: £0.73 million).
Operating out of Southampton, Bury (Manchester), Peterborough and Leeds, an
experienced team of specialist engineers supports a range of commercial and
domestic customers.
The Fire & Security division delivered a solid performance this year, as
usual benefitting from the support and lead generation from our Locksmiths
network. The team continued to expand the products on offer, this year saw the
introduction of an Industrial doors division covering all types of doors and
motorised doors and shutters which has already generated a strong response
from key customers.
Similarly, the division expanded its working relationship with the market
leading AJAX intruder alarm business. The system is fast to install, provides
accurate external sensors able to differentiate between a human and another
object, and operates from a single app. Installation is also quicker making it
more cost efficient for the customer, a clear advantage in the current
environment. All these factors combine to make it a compelling offer for new
installations, and the Division has been collaborating successfully with AJAX
on further upgrades and developments to the system. Recently the addition of
fully compliant Fire systems that operate within the AJAX eco system complete
the already highly impressive AJAX offering.
In May 2024, Croma formed a partnership with bSafe the personal security App
which offers round the clock protection using voice activated technology. The
product is being made available widely through mobile device manufacturers at
source but provides a valuable addition for Croma clients where remote support
may be needed over and above the immediate panic facilities provided for
clients in properties.
A key progression during the year was the investment on the soon to be
completed software upgrade to the Division's computer systems. The new
platform being installed, like the one successfully installed for the
locksmith division, will drive efficiencies across the business, standardising
quotations, monitoring time on projects, collect and store sales data more
efficiently and support staff training.
Proceeds from Vigilant sale
In June 2023, the Group sold its manned guarding business Vigilant for £6.5
million, in order to focus on the Group's core businesses, Croma Locksmiths
and Croma Fire & Security. The proceeds from the Vigilant sale are
staggered over 10 quarterly instalments from 31 March 2024. As of the date of
these accounts, from the total £6.5 million consideration, £4.9 million has
been received with a further £1.7 million to be received quarterly by June
2026.
Group financials 2025 2024
The Group financials can be summarised as follows:
Revenue £9,633k £8,737k
Gross profit £4,180k £3,999k
Gross margin % 43.39% 45.77%
Administrative expenses £3,643k £3,395k
EBITDA £1,166k £1,061k
Operating profit £596k £607k
Profit for the year £786k £543k
Basic earnings per share 5.72p 3.95p
Net assets £15,728k £15,224k
Cash generated from operations £632k £723k
Cash and cash equivalents £4,328k £2,142k
Dividend per share in relation to the year 2.4p 2.3p
Croma Croma Fire & Central Total
Locksmiths
Security
£000s £000s £000s £000s
EBITDA 1,115 808 (757) 1,166
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE 2025
Notes 2025 2024
£000s £000s
Revenue 9,633 8,737
Cost of sales (5,453) (4,738)
Gross profit 4,180 3,999
Administrative expenses (3,643) (3,395)
Other operating income 59 3
Operating profit 596 607
Analysed by:
Earnings before interest, tax, depreciation, impairment and amortisation of 1,166 1,061
intangible assets (EBITDA)
Amortisation (85) (62)
Depreciation (485) (392)
Operating profit 596 607
Financial expenses (32) (27)
Financial income 261 217
Profit before tax 825 797
Tax 5 (39) (254)
Profit for the period 786 543
Profit and total comprehensive income for the period attributable to owners of 786 543
the parent
Earnings per share
Basic earnings per share (pence) from total operations 6 5.72 3.95
Diluted earnings per share (pence) from total operations 6 5.71 3.95
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2025
2025 2024
£000s £000s
Assets
Non current assets
Goodwill 5,274 5,042
Other intangible assets - 85
Property, plant and equipment 3,582 2,576
Right-of-use assets 525 552
Other receivables - 1,651
Total non current assets 9,381 9,906
Current assets
Inventories 1,551 1,203
Trade and other receivables 3,161 4,818
Cash and cash equivalents 4,328 2,142
9,040 8,163
Total assets 18,421 18,069
Liabilities
Current liabilities
Trade and other payables (1,840) (1,876)
Lease liabilities (149) (114)
(1,989) (1,990)
Non current liabilities
Provisions (111) (161)
Deferred tax (174) (217)
Lease liabilities (419) (477)
Total non current liabilities (704) (855)
Total liabilities (2,693) (2,845)
Net assets 15,728 15,224
Equity attributable to owners of the parent
Share capital 794 794
Treasury shares (929) (946)
Share premium 6,150 6,133
Merger reserve 2,139 2,139
Capital redemption reserve 51 51
Retained earnings 7,523 7,053
Total equity 15,728 15,224
CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2025
2025 2024
£000s £000s
Cash flows from operating activities
Profit before taxation 825 797
Depreciation, amortisation and impairment losses 570 454
(Profit) on sale of property, plant and equipment (2) -
Net changes in working capital (335) (136)
Interest payable 32 27
Interest receivable (261) (217)
Corporation tax paid (197) (202)
Net cash generated from operations 632 723
Cash flows from investing activities
Purchase of businesses net of cash acquired (336) (73)
Purchase of property, plant and equipment (1,288) (793)
Proceeds on disposal of discontinued operations 3,363 538
Proceeds on disposal of property, plant and equipment 2 -
Net cash from/(used) in investing activities 1,741 (328)
Cash flows from financing activities
Payments to reduce lease liabilities (134) (117)
Treasury shares sale proceeds/(acquired) 34 (168)
Financial income (net) 229 190
Dividends paid (316) (302)
Net cash used in financing activities (187) (397)
Increase/(decrease) in cash and cash equivalents 2,186 (2)
Cash and cash equivalents at beginning of period 2,142 2,144
Cash and cash equivalents at end of period 4,328 2,142
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2025
Share capital Capital redemption reserve Treasury shares Share premium Merger reserve Retained earnings Total
equity
£000s £000s £000s £000s £000s £000s £000s
Balance at 1 July 2023 794 51 (778) 6,133 2,139 6,812 15,151
Treasury shares acquired - - (168) - - - (168)
Profit for the year - - - - - 543 543
Dividends paid - - - - - (302) (302)
Balance at 30 June 2024 794 51 (946) 6,133 2,139 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 51 (929) 6,150 2,139 7,523 15,728
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 2025
1. Basis of preparation
The Group financial statements have been prepared under the historical cost
convention and approved by the Directors in accordance with UK-adopted
International Accounting Standards.
While the financial information included in this preliminary announcement has
been prepared in accordance with UK-adopted International Accounting
Standards, this announcement does not itself contain sufficient information to
comply with UK-adopted International Accounting Standards.
This announcement does not constitute statutory accounts of the Group for the
years ended 30 June 2024 or 30 June 2025.
The financial information has been extracted from the statutory accounts of
the Company for the year ended 30 June 2025. The auditors reported on those
accounts; their report was unqualified and did not include references to any
matters to which the auditors drew attention by way of emphasis without
qualifying their report and did not contain a statement under either Section
498 (2) or Section 498 (3) of the Companies Act 2006.
The accounts for the year ended 30 June 2024 have been delivered to the
Registrar of Companies, whereas those for the year ended 30 June 2025 will be
delivered to the Registrar of Companies following the Company's Annual General
Meeting.
The Annual Report will be posted to all shareholders who have requested a copy
on shortly and will be available on request from Unit 7 & 8 Fulcrum 4,
Solent Way, Whiteley, Hampshire PO15 7FT and on the Company website at
http://www.cssgplc.com/investors/. The Annual Report contains full details of
the principal accounting policies adopted in the preparation of these
financial statements.
2. Accounting policies
The accounting policies applied by the Group in this report are the same as
those applied by the Group in the consolidated financial statements for the
year ended 30 June 2025 and the year ended 30 June 2024. The directors expect
similar accounting policies for the year ended 30 June 2026.
3. Segmental reporting Croma Croma Locksmiths (Locks) Central Total
Fire and
Security
£000s £000s £000s £000s
2025 Business Segments
Segment revenues 4,087 5,615 - 9,702
Inter-segment revenue (22) (47) - (69)
Revenue from external customers 4,065 5,568 - 9,633
Gross profit 1,918 2,262 - 4,180
Administrative expenses (1,110) (1,208) (757) (3,075)
Amortisation - (85) - (85)
Depreciation (202) (283) - (485)
Other operating income - 59 - 59
Profit/(loss) on disposal - 2 - 2
Operating profit/(loss) 606 747 (757) 596
EBITDA 808 1,115 (757) 1,166
Segment assets 4,155 8,409 5,857 18,421
Segment (liabilities) (932) (920) (841) (2,693)
Segment net assets 3,223 7,489 5,016 15,728
Additions to non-current assets 155 1,199 - 1,354
The difference between the segments revenue and consolidated income revenue is
due to internal sales between the segments of £69k
2024 Business Segments
Segment revenues 3,799 5,095 - 8,894
Inter-segment revenue (81) (76) - (157)
Revenue from external customers 3,718 5,019 - 8,737
Gross profit 1,998 2,072 - 4,070
Administrative expenses (1,270) (1,076) (666) (3,012)
Amortisation - (60) (2) (62)
Depreciation (174) (218) - (392)
Other operating income - 3 - 3
Operating profit/(loss) 554 721 (668) 607
EBITDA 728 999 (666) 1,061
Segment assets 2,740 6,037 9,292 18,069
Segment (liabilities) (1,003) (1,131) (711) (2,845)
Segment net assets 1,737 4,906 8,580 15,224
Additions to non-current assets 239 668 7 914
The difference between the segments revenue and consolidated income revenue is
due to internal sales between the segments of £157k
4. Expenses 2025 2024
£000s £000s
Amount of inventory expensed as cost of sales 3,752 3,387
Depreciation - owned assets 348 239
Depreciation - right of use assets 137 153
Amortisation 85 62
Auditors' remuneration:
Audit of parent company and consolidated financial information 69 60
5. Taxation 2025 2024
£000s £000s
Analysis of the tax charge in the year
Current year tax charge
UK corporation tax charge on profit for the year 248 191
Adjustments for prior periods (166) -
Total current tax 82 191
Deferred tax (note 24)
Current year (32) 63
Adjustments for prior periods (11) -
Total deferred tax (43) 63
Tax on profit on ordinary activities 39 254
Factors affecting the tax charge for the year
2025 2024
£000s £000s
Profit before taxation 825 797
Profit multiplied by the standard rate of taxation in the UK of 25% 206 199
Effects of:
Expenses not deductible for tax purposes 10 55
Adjustments for prior years (177) -
Total tax charge for the year 39 254
6. Earnings per share
The calculation of basic earnings per share ("EPS") is based on the profit
attributable to ordinary shareholders, from continuing operations, divided by
the weighted average number of shares in issue during the year, calculated on
a daily basis.
The calculation of diluted EPS is based on the basic EPS adjusted to allow for
the issue of shares and the post-tax effect of dividends and interest on the
assumed conversion of all other dilutive options and other potential ordinary
shares.
2025 2024
£000s £000s
Numerator
Earnings for the year used in basic and diluted EPS 786 543
Denominator
Weighted average number of shares used in basic EPS (000s) 13,739 13,766
Weighted average number of shares used in diluted EPS (000s) 13,754 13,778
Pence Pence
Basic EPS 5.72 3.95
Diluted EPS 5.71 3.95
7. Business combinations (acquisitions)
As part of the Group's continuing strategy to expand the network of security
centres, on 3 February 2025 Croma Locksmiths and Security Solutions Limited
acquired a business comprising 100% of the share capital of Meridian
Securities System Limited ("Meridian"), a well-established, family run
locksmith business based in Horsforth, Leeds
The fair value of net assets acquired is set out below: £000's
Purchase consideration (satisfied entirely by cash) 150
Less: the fair value of assets acquired
Property, plant and equipment (26)
Inventory (105)
Trade and other receivables (28)
Cash and cash equivalents (7)
Add: the fair value of liabilities
Trade and other payables 155
Goodwill (139)
-
Transaction costs of 11k relating to the acquisition of Meridian have been
recognised as an expense and included within administrative expenses in the
statement of profit or loss.
Meridian contributed £328k to the Group's revenue and made a loss of £32k
for the period from the date of acquisition to the year-end date. The loss is
due to one-off accounting adjustment to stock provision of £54k. Without the
adjustment, Meridian would have delivered £22k profit before tax. If the
acquisition of Meridian had been completed on the first day of the financial
year, this would have added £784k to the Group's revenue and £33k to Group
profit before tax.
The book values of the assets and liabilities acquired at the acquisition date
were considered to be approximate of their fair values. In addition, the
property was acquired by the vendor's SIPP for a value of £275,000.
In addition to the above acquisition, on 1 April 2025, the Group acquired the
acquired a business comprising 100% of the share capital of Benn Lock and Safe
Limited ("Benn Lock & Safe"), a well-established, Peterborough based
locksmith and security provider.
The fair value of net assets acquired is set out below: £000's
Purchase consideration (satisfied by cash and shares) 200
Less: the fair value of assets acquired
Property, plant and equipment (40)
Inventory (76)
Trade and other receivables (82)
Cash and cash equivalents (7)
Add: the fair value of liabilities
Trade and other payables 98
Goodwill (93)
-
Transaction costs of £8.5k relating to the business purchase of Benn Lock
& Safe have been recognised as an expense and included within
administrative expenses in the statement of profit or loss.
This addition contributed £146k to the Group's revenue and made a loss of
£1k for the period from the date of acquisition to the year-end date. The
loss is due to one-off accounting adjustment to stock provision of £16k.
Without the adjustment, Benn Lock and Safe Limited would have delivered £14k
profit before tax. If the acquisition of Benn Lock & Safe had been
completed on the first day of the financial year, this would have added £680k
to the Group's revenue and £55k to Group profit before tax.
The book values of the assets and liabilities acquired at the acquisition date
were considered to be approximate of their fair values.
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