The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Could get quite decent quotes in the last couple of weeks but the MMs have put limited online quote to 6,000 shares under 44p, might start to trend back to 50p send over.
Could well see increased dividend payments now, outlook positive especially with the contribution from the acquisition and new orders to impact on H2.
Bottomed out by the looks of it, some news from the new Far East office could well come, must have been some good inclination of security orders to set up there.
Elias - thanks for the link and I remember reading it when first published. But the essence of Q6 is "Do you intend to keep paying dividends?" and the answer was "Yes" I was just trying to speculate on what a realistic divi could be with a profit of around 1Mil and what that would do to the Share Price. I see no reason why it could not double by the end of the 17/18 year bearing in mind it seems to be low at the moment.s
The Q&A with the Chief Officer sounds positive on dividends going forward. See Croma Security Q&A below http://www.stockopedia.com/content/ceo-interview-croma-security-solutions-117328/?submitted=2
The current MC is 50% of last years revenue. If that is maintained then in some 18 Months or so the share price will rise some 50%. However you would think that if the Dividend was raised this would raise the MC. I think the current Divi cost some 45K. So, with a profit approaching 1 Mill in the 17/18 financial year what might the Divi grow to. I think this is key to the MC. Thoughts anyone?
Combined annual around £20m turnover, £900k operating profit.
From the interims and NOT reflected in H1 (to come in the second half and beyond): "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."
Richard Juett appointed as Finance Director. Starting from a zero share holdign, might the new FD take a stake now for some skin in the game?
Excellent 6 months report. Take out last years 6% one-off Commonwealth games revenue and you have a 10% revenue growth for this years first half. The recent three contracts plus the acquisition will add to this years figures and even more so to next year. This means that the two organic growth areas, Abu Dhabi and fastvein, have a good 12 months to start producing in order to continue revenue growth into the 17/18 year. Access locksmiths, which will be acquisition growth, will be cash hungry but with no real debt - hey it's affordable. Show me the downside. The good times roll. I am in love.
disagrees.... ....when to add?
prospects..with ebita of over £1 post acquisition, I am jolly comfortable up to c60p/ev of 8-9* ...if steady growth visible to investors, my tp rises...80p and up to £1
There has been a barrage of new contract wins in H1, which I am sure going by the sound bites we are hearing will prove a very positive Interim report, with growing revenues and profits. Over the past two years the interim report has been this week in February (26 Feb & 27 Feb)
1 December 2015 Croma Security Solutions Group plc ("CSSG" or the "Company"), the AIM listed total security services provider, is pleased to announce that it has signed a framework agreement appointing the Company as a security systems supplier to Anesco Ltd ("Anesco"). Anesco is among the UK's leading energy efficiency solutions companies and has been recognised by the Sunday Times Fast Track as the country's fastest growing private company and by Global Cleantech as one of the top 100 cleantech companies in the world. Anesco requires innovative security solutions for its fast pace growth on sites throughout the UK. The annual spend on security under the framework agreement is anticipated to be c.£800,000. Commenting on these contract wins, Sebastian Morley, Chairman of CSSG, said: "We are delighted to win this business, which demonstrates confidence in CSSG when innovative, high end security solutions are required. This contract will add to our ongoing contract wins throughout the Group and will add to our ongoing profitability in the coming year." http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CSSG&ArticleCode=q55wj2eo&ArticleHeadline=New_Contract_Win 9 December 2015 The Managing Director and owner of Access Locksmiths Limited, Mr Mark Whettingsteel, has joined the board of CSSG plc and will run all locksmith operations for the Group. In the year to 28 February 2015, Access had sales of £2.44 million, profit before tax of £0.3 million and reported net assets of £0.74 million at that date. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CSSG&ArticleCode=12z6hgss&ArticleHeadline=Acquisition
14 September CSSG is pleased to announce that its Manned Guarding division, Croma Vigilant Security Services ("Croma Vigilant"), has recently won significant contracts with a Healthcare Institution and a major London based property group, worth £1.5m and £1m per annum respectively. The directors are increasingly confident about the prospect for Croma Vigilant in both the short and medium term. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CSSG&ArticleCode=e5solcqb&ArticleHeadline=New_Contract_Wins 19 November Croma Security Solutions Group plc ("CSSG" or the "Company"), the AIM listed total security services provider, is pleased to announce that it has entered into five new contracts, worth a total of £210,000 annually, with London based property management groups and a major online fashion retailer. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CSSG&ArticleCode=qs8tppea&ArticleHeadline=New_Contract_Wins
9 June 2015 Croma has signed a further three year contract with ODEON, one of the UK's Largest Cinema Chains, to provide planned maintenance, servicing, installation and upgrade works to its cinemas. The contract is expected to total between £1.1 and £1.2 million over the three year period. Croma signed a further five year contract with Global Hotelier Hilton Hotels, to continue routine maintenance of revenue parking systems & servicing, expected to total £0.9 million over the five year period, with the possibility of additional revenue for upgrade works over the tenure of the contract. The Company was also awarded the contract for the installation of an incredibly secure Fastvein biometric access control system into the second largest Bank in the UK, working in partnership with Hitachi, for an undisclosed value. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CSSG&ArticleCode=7pb0tc31&ArticleHeadline=New_Contract_Wins 1 July 2015 Croma Group is pleased to announce the delivery of an integrated security solution to a major industrial client in the Kingdom of Saudi Arabia. The solution involves CCTV, intruder alarms, locks, as well as access control based around the Group's Fastvein product. The contract value was in excess of £100,000. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CSSG&ArticleCode=zvhways0&ArticleHeadline=Contract_Win
like the acquisition and strengthening of management...the st outlook is still a little weak, but the medium term a lot more promising imv
I believe the share price could double in the next 2/3 years. The current Market Cap is some 50 % of the last full years figures. The 3 significant recent contracts plus the acquisition mean that revenue will increase by some 2/3 Mil this financial year and some 5 mil next year. Add in some organic growth and a full year next year could see around 22 Mil. This is a 50% increase. Profits should also increase towards 1 Mil in the next full year. last year the dividend cost about 45K. Which means that that divi will be covered some 20 times by the next full year. With no debt to repay I would hope the divi increase will be substantial. Should this all come to pass then the company only has to have a Market Cap of 15 Mil for the SP to double. I can but hope!
1st half of Nov 2015 the SP sat on a support of 44/45p before moving up on a healthy rise of around +22%. Following that rise, have we slipped back to support at around 47p, can I expect a repeat rise. Anyone agree/disagree?
Adding the Croma and Access figures for their last reported year, turnover stands at around £18.2m and operating profit £690k. Turnover at CSSG has increased 19% last 2 years and 7% last year. The communications coming out of the company suggest new orders, biometric / FASTVEIN interest, international expansion, acquisition savings, increased profits, turnover growth. Taking growth into account at the same rate turnover going forward near term will be very close to £20m and quite possibly operating profit around £1m. SP wise, as we currently stand with last reported combined figures £18.2/690k, and taking into account potential for growth 9c.£20/£1m, I am personally targeting the sp over the next 12 months to be on a p/e of 15 between 63p-91p. Obviously room to adapt should fastvein biometrics gain more traction.
The acquisition of Access Locksmiths Limited an award winning company looks very astute and offers good opportunity for profitable growth as per Q5 of the Q&A. I am not sure the market has actually priced in the additional profitable numbers that come with this well established business. “In the year to 28 February 2015, Access had sales of £2.44 million, profit before tax of £0.3 million and reported net assets of £0.74 million at that date.”
Q8. In summary, what can Croma Security Solutions shareholders look forward to over the next 12 to 18 months? Improved profits and continued Growth and the expectation that FastVein will grow rapidly once clients learn to trust it as the Biometric technology of choice for most applications. - See more at: http://www.stockopedia.com/content/ceo-interview-croma-security-solutions-117328/#sthash.3VmaySMB.dpuf
Q7. What do you make of the market sentiment relating to Croma Security Solutions and do you feel the current market capitalisation is a fair reflection of where the company is at and compare to industry peers? We feel that the sentiment is misunderstood. Perhaps it is our mission statement that isn’t clear enough. We aren’t expecting our share price to rocket, nor should an investor presume that. We are a rock-steady, debt free, no nonsense service provider. Comparing to industry peers we do feel that we are undervalued; every RNS that is sent out is 100% the truth, no premature or unfounded stirrings, no ‘filler’– simply what is going on within Croma. - See more at: http://www.stockopedia.com/content/ceo-interview-croma-security-solutions-117328/#sthash.3VmaySMB.dpuf
Q6. Croma recently announced that in light of the results for the last financial year, and the positive start to the current year the Company will continue the dividend policy introduced last year, is this dividend policy something you hope to continue in the future? That is the plan. We have a bright future with some fantastic opportunities, backed by an excellent team of committed and knowledgeable employees. As long as there is headroom for it, of course we would want to offer shareholders a return wherever possible. - See more at: http://www.stockopedia.com/content/ceo-interview-croma-security-solutions-117328/#sthash.3VmaySMB.dpuf