Croma Security posts solid set of interim numbers

21st Feb 2024 11:15

(Sharecast News) - Croma Security Solutions reported a solid set of interim results on Wednesday, with revenue rising 13% to £4.26m.

The AIM-traded company recorded an 11.9% rise in EBITDA year-on-year to £0.51m, maintaining an EBITDA margin of 12%.

Net profit surged 17.7% for the six months ended 31 December to £0.25m.

With a robust balance sheet boasting a net cash position of £1.73m, the company noted its repurchase of 400,000 shares into treasury at 45p apiece on 3 August 2023.

Operationally, Croma invested £80,000 during the period to enhance its infrastructure and central services, ensuring continued operational efficiency.

The group said it secured several new commercial orders, including further sales of iLOQ, underscoring its market competitiveness and growth potential.

Looking ahead, the company anticipated a promising start to the second half of the financial year, with a solid pipeline of opportunities.

Notably, Croma expanded its network by acquiring two profitable locksmith businesses in Peterborough and Worthing, contributing to a total of 16 security centres nationwide.

Furthermore, the re-award of a three-year maintenance contract by an NHS trust and the strategic sale of Vigilant, scheduled to yield £5.78m in stage payments from March 2024 to June 2026, added to its continued growth prospects.

With its strategy on track to enhance growth and profitability, the group said it intended to declare a single final progressive dividend with the 2024 results.

"I am delighted by our resilient performance to date, achieved in spite of a difficult macro backdrop," said chairman Jo Haigh.

"Our growth in profits is all the more impressive given the investment that we have made in the business over the period.

"This very much underlines that our decision to refocus the business is the right one."

Haigh said the company's acquisition strategy aimed to enhance sales growth as it expanded our security centres nationwide, and focussed on innovation to deliver cost synergies through shared expertise and services.

"I am confident in our ability to continue to drive sustainable growth both organically and through expanding our network and would like to thank the team for their unwavering determination to deliver."

At 1211 GMT, shares in Croma Security Solutions Group were up 8.82% at 72.91p.

Reporting by Josh White for Sharecast.com.