Member Info for EliasJones

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

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?

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

As speculated in the article the appointment of Harry Stratford as FAST NED was a telling hint as to what was to come. FAST announced today that it is in very advanced discussions with Amryt Pharmaceuticals. If the Acquisition proceeds, the enlarged group will become a late stage, specialty biopharmaceutical company and will constitute a reverse takeover. http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FAST/12706969.html

Fastnet Equity – Changing focus to Healthcare Fastnet Equity (LON:FAST) is a casualty of the tiddler O&G exploration sector and had the courage to wisely change its focus and adopt an investing policy. The Celtic Sea and Morrocco Oil and Gas interests have been hived into a new company named Fastnet Hydrocarbons, this was a key move which allows the new Fastnet to focus on the Company's strategy of pursuing acquisition opportunities within the healthcare sector. Value may come from these assets in the future through disposal but the key for now is Fasnet Equity will no longer have any ongoing interest or further cost exposure to O&G. Now, what caught my interest with Fasnet is their cashpile which was noted at US$15.5m in their interims at 30 September 2015, this on my entry was below the current market capitalisation. Obviously the cashpile alone although very chunky is not enough and it’s the moves they are making to enter the healthcare sector which is of interest. The most noticeable recent piece of new is the appointment of Mr Harry Stratford as a Non-Executive Director. This NED appointment for an AIM minnow may be seen as telling of the ambition and possibly what’s to come. Mr Harry Stratford has racked up over 40 years' experience in the pharmaceutical industry and has built two successful publicly listed pharmaceutical companies, he founded Shire Plc in 1986 and was CEO for almost a decade and later the founder, CEO and Executive Chairman of Prostrakan Plc. Cathal Friel, Non-Executive Chairman, commented: "We are delighted to welcome Harry to the Board as a Non-executive Director. We look forward to working with him as we investigate potential acquisition opportunities within the healthcare sector, where we expect his extensive knowledge and experience of the specialty and orphan drug pharmaceutical industry will be of particular value." - See more at: http://www.stockopedia.com/content/four-shares-to-watch-in-2016-vela-croma-fastnet-and-new-116298/#sthash.B7BSMdYv.dpuf

Four Shares to Watch in 2016: Vela, Croma, Fastnet and New http://www.stockopedia.com/content/four-shares-to-watch-in-2016-vela-croma-fastnet-and-new-116298/

I have held back quietly on APC since the new CEO took over, I have today sent the company my final email. I sincerely wish everyone who holds all the best. Elias ------------------------- Dear Mr Hodgson, This will be my final email to you and APC. I have been a staunch supporter of the company for around 8 years now and have covered with around 12 articles many of those CEO Q&A articles. I have written emails for your attention since November, with the latest being 7 February. Unfortunately I have not even been shown the slightest bit of respect by not even receiving a mere acknowledgement. It has always been my strategy when CEO’s try to alienate the retail investor, it’s no longer an investment for me, no matter how much blue sky on the way. Since the start of your tenure with APC as CFO and now CEO the company has tapped the market for around £4.8m, over this time net debt has increased considerably and the 6m invoice facility in place. The full Chairman and CEO review has not materialised with many unanswered questions still lingering for loyal holders. For me it’s over and out. Regards, Elias

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

Q5. Croma have recently acquired Access Locksmiths for £2 million through shares and cash now and later, can you please explain the rationale behind this acquisition and is this a way you will fund future acquisitions? 1. Our existing locksmith staff require a succession and a leader with time to lead them and develop the business. 2. Opens up skilled engineering base across the South Coast reinforcing our current position. 3. Croma Locksmiths become the largest supplier of Key cutting and Locksmith services on the South Coast and potentially the UK other than another major high-street key cutting operation (we remain and will become a larger concern for this company as they try to develop Locksmith services within their Group since they are limited to mainly basic key-cutting) 4. Preferential deals with manufacturers where we will command the best buying rates. 5. Access Locksmiths already have a 10% purchasing advantage on a range of products that we use currently and we will command the best discounts from our current principle supplier as we become their number 1 account. 6. Locksmith retail outlets will develop to sell commoditised electronic systems such as intruder, access, CCTV and intercoms which are currently not offered. 7. Cross selling opportunities for further security services / products to Access’ current customers. 8. Croma Security Systems can then become the specialist security provider instead of one organisation dealing with domestic alarms through to high end Government/commercial systems. (Allows us to specialise) 9. Mark Whettingsteel brings a hard work ethic to the table, he was trained by our Locksmiths originally. 10. Consolidation savings (Marketing, Insurances, Telephones etc.) This deal was concluded with cash and paper however it should not set an expectation for future acquisitions which will all be judged on individual merit. In this transaction it was important to bring in a new executive Director with adequate shareholding in the ongoing business to ensure alignment with other Directors to build a stronger board sharing the same desire to grow and develop the Group. - See more at: http://www.stockopedia.com/content/ceo-interview-croma-security-solutions-117328/#sthash.3VmaySMB.dpuf

Q4. Are Croma Security Solutions seeing interest in the FastVein™ suite of products? Incrementally. The Brits have never been as open to new concepts as other nations are known to be. We are a reserved and calculated nation and like to see things in action elsewhere before committing to them. This coupled with the natural social stigmas behind biometrics as a whole has made FastVein initially slow to grow. People are however at last warming to the concept and early adopters are showing a great deal of interest. Those who have placed orders or already have systems are very much impressed by it and have now seen a biometric technology that clearly works well in practice and not just on paper. Enquiries are growing and we expect to see further high end projects delivered in 2016. - See more at: http://www.stockopedia.com/content/ceo-interview-croma-security-solutions-117328/#sthash.3VmaySMB.dpuf

Q3. Croma Security Solutions have recently announced a number of new contract wins, how significant will these be for the business? The significance of many of these deals is not necessarily the face value of the turnover or profit that they generate; rather the fact that the market is changing, and we are making an impression. Certain contracts were won in the face of adversity - we are not the cheapest in the market, and we never will be. The market is realising the difference between cost and value. The difference in service that we can deliver is hitting home. Further to this we are securing more high profile contracts with major national and international companies, as well as high profile individuals. This is testament to our tenacious, resilient and dedicated approach to delivering not only what we say we will, but sometimes a little more. Our strapline ‘The stand out security group’ fits the bill. The guarding contract wins give year on year growth as almost all clients once placing business with Croma Vigilant appreciate the service provided to the point that they will continue to renew year on year. This provides a huge level of stability to the group overall. In respect of the systems announcements they allow Croma to spread service a little further around the UK. Each new major account assists in this growth and of course increase in profits. - See more at: http://www.stockopedia.com/content/ceo-interview-croma-security-solutions-117328/#sthash.3VmaySMB.dpuf