Croma Security Share Price (CSSG)

Another bolt-on acquisition, which looks very good value with £0.46m plus a little earn-out consideration buying £1m revenues, £0.13m EBITDA and £0.43m net assets.

This acquisition brings in specialist electronic security expertise in particular, which from the sound of it will achieve material synergies etc.

This is the second acquisition already this year - looks like the pace of acquisitions is picking up as promised:

Https://uk.advfn.com/stock-market/london/croma-security-solutions-CSSG/share-news/Croma-Security-Solutions-Group-PLC-Acquisition/98055100

Dibbs99, I don't know who Russell Long is, but with over 8% here now he's evidently a man of taste and distinction!

Who's Russell Long?

A late RNS last night - Russell Long has bought another 1% (127,000 shares) and is now up to 8.4%, with 1.15m shares:

Https://uk.advfn.com/stock-market/london/croma-security-solutions-CSSG/share-news/Croma-Security-Solutions-Group-PLC-Holdings-in-Com/97893077

For reference the H1 results will be on 27th Feb (or before!).

Hybridan last week had this to say:

"Croma Security Solutions Group 71.50p £10.12m (CSSG.L)

Financial Calendar: Year End June, Reported 3 November, Interims December, Reporting 27 February

Top Three Shareholders: Roberto Michele Fiorentino 28.46%, Liontrust Investment Partners LLP 9.90%, Russell Long 7.44

Key Investment Points: Proven Concept, Synergies in Scale, Cash for Expansion

Croma the acquisitive security solutions provider is to report Interims on 27 February. The finals to June 2025 were announced on 3 November showing that revenue had improved 10% to £9.63m along with a 10% improvement in EBITDA to £1.17m, while the Operating profit was little changed at £0.6m. The Gross margins of 43% declined from 46%. 20% of the turnover is from the locksmith division, which typically comes from the retail market, while the remaining 80% is generated from commercial and institutional customers.

The strategy is one of to ‘Buy and Build’, to become a branded national network of full-service Security Centres. This will be by acquiring modestly valued, independent locksmith stores and converting or assimilating them into comprehensive security centres with an enhanced product offering.

Croma designs, installs, and maintains a wide range of security systems and fire services such as Intruder Alarms, CCTV, and Access Control systems, as well as Biometrics, Door Entry, and Automatic Door systems, and offers 24/7 Remote Monitoring and bespoke systems for high-risk buildings. This contracted commercial work is primarily for local authorities and healthcare providers.

The net cash was £4.3m and the FY dividend was increased to 2.4p from 2.3p at the FY numbers in November.

To prove the concept, three acquisitions have been made, which shows encouraging investment into expanding the core operational functions to be able to accelerate the pace of acquisitions. On 5 January 2026, TLS Security Systems was acquired for £0.47m and is a family owned and operated business, located in Taunton, providing specialist locksmith and access control services and an additional £0.2m was paid for a freehold property. The growth model should over time drive cost efficiencies and significantly increase the acquisition earnings potential.

The FY June 2026 forecast on Alpha Terminal is a PBT of £0.73m on £10.2m of Turnover, which we calculate gives a prospective P/E of 18x, and the dividend yield is 3.4%. We calculate that the EV/ EBITDA multiple would be 7.8x. According to Company announcements, there is a pipeline of potential acquisitions and the Company expects to acquire 3-5 stores per annum and to increase the margins as they become Security Centres and accelerate future growth.

Hybridan Comment: The opportunity should start to be unlocked as there is the cash and an enlarged acquisition team to open up the Buy & Build strategy."

Good news, starting 2026 with an acquisition for a maximum £0.47m on a multiple of only 4 times EBITDA:

Https://uk.advfn.com/stock-market/london/croma-security-solutions-CSSG/share-news/Croma-Security-Solutions-Group-PLC-Acquisition/97546877

This is already a business specialising in CCTV, electronic security and access etc, so should be integrated easily and "creates natural operational synergies" which should increase profitability.

Hopefully this signals a faster pace of acquisitions with more to come from the large cash pile - today's RNS notes that CSSG have now received a further £0.43m cash from the sale of Vigilant.

I assume CSSG now have around £4.5m net cash, plus the previously flagged £3m+ of properties and the additional £0.2m freehold property acquired today.