Croma Security Share Price (CSSG)

Fantastic company, personel in City shops are always very helpful. I assume it is due to the UK economy being trashed after Brexit that CSSG find it hard to do battle. We used to have millions of people from Europe visiting our cities and spending money in our shops, now they think we are just greedy FX&kOrrs not wanting to be part of the friendly EU so they go to other countries where their money helps the greater European motherland.

Think Iceland that cold country to the North of us has the same problem with EU nationals spending money in their country.

Hybridan yesterday issued their inaugural sector report on "Undervalued, Under Researched Small Caps".

They picked out five examples, one of which is CSSG (another is RUA, which I also hold).

Each company gets a one page summary. They note the £4.3m and rising cash pile, and that:

"The strategy is to acquire traditional locksmith stores at moderate valuations and transform them into modern Security Centres. These will have a wide in-store product range and a broader range of services with much greater profit potential. The target is to acquire 3-5 shops per year with a target ROI of at least 15% as they become Security Centres. So far this year, two acquisitions have been made although progress was reported in expanding the pipeline of acquisition targets."

They conclude:

"Hybridan Comment: The valuation seems to ignore the profit potential from the successful roll-out of a branded national network of security centres."

Encouraging news - the CEO has transferred almost £50,000 of shares held by him into his and his wife's ISAs at 82p. A sensible move to protect future gains from CGT.

He did the same thing last October - on a much larger scale for £332,000 - at 67.5p, so that was a good precursor of things to come for the now 83p share price:

Https://uk.advfn.com/stock-market/london/croma-security-solutions-CSSG/share-news/Croma-Security-Solutions-Group-PLC-Director-PCA-Dealings/96016618

Martyn's Law has now come into force, and its enactment "is expected to have significant implications for public safety in the UK, with businesses and event organizers now legally required to actively engage in counterterrorism efforts".

This should be nicely positive for CSSG given the need to buy/upgrade CCTV systems, screening equipment, communications, locks etc.

The obvious effect is on big venues like the 02 arenas, but this legislation goes far beyond that, i.e schools:

Https://www.cromalocksmiths.co.uk/post/incoming-security-changes-for-uk-schools-required-by-martyn-s-law

And sports grounds:

Https://www.facebook.com/story.php?story_fbid=1109985334468116&id=100063699786119

And theatres:

Https://www.facebook.com/photo?fbid=1118634366936546&set=a.125698169563509

To name just a few opportunities.

Another acquisition - good value if small at first look, given £40k PBT on £200k consideration. But (a) with £675k revenues there's room for improvement on margins and (2) the closure of the existing Peterborough store will bring synergies and savings.

Owning the major security centre in Cambridgeshire looks like a good strategic move:

Https://uk.advfn.com/stock-market/london/croma-security-solutions-CSSG/share-news/Croma-Security-Solutions-Group-PLC-Acquisition/95749498