The following amendment has been made to the 'INTERIM RESULTS' announcement released on 27 February 2014 at 07:00 under RNS No 0464B.

The first sentence has been amended to read 'six months to 31 December 2013' rather than 'six months to 31 December 2012'

All other details remain unchanged.

The full amended text is shown below. 

CROMA SECURITY SOLUTIONS GROUP PLC

(LON:CSSG)

INTERIM RESULTS

FOR SIX MONTHS TO 31 DECEMBER 2013

Croma Security Solutions Group plc ("The Group") the AIM listed total security services provider announces its interim results for the six months to 31 December 2013.

HIGHLIGHTS

-  Revenue  up 7.7%  to B#7.31M (H1 2012: B#6.78M)

- Gross Profit B#1.82M  (H1 2012:  B#1.75M)

- EBITDA B#0.3M (H1 2012 B#0.28M)

- Net Assets B#8.67m, cash B#0.8M

 

For further information visit www.cssgroupplc.com or contact: 

Croma Security Solutions Group PLC

Sebastian Morley, Chairman                                             Tel: +44(0)7768 006 909

WH Ireland Limited

Adrian Hadden / Nick Field                                              Tel: +44 (0)207 220 1666

 

Chairman's Statement

I am pleased to report the financial results for the six months to 31 December 2013 which demonstrate an increase in turnover and profitability for the new Group. 

During the six months, Group turnover increased by 7.7% to B#7.31m and we continue to target and win high value security projects in the face of reduced corporate spending. PBT grew to B#144,000 (2012 H1: B#90,000) with EBITDA of B#0.3M (2012 H1 B#0.28M).

The aim of the Group is to offer total security services to high grade, stable clients who demand a premium service. Premium ex-military manned guarding, CCTV, intruder systems, fire systems, biometric identification and access control are our core activities. We are further concentrating our fire on to our Fastvein and Vehicle Impact Protection System (VIPS) which are unique to the Group. 

The Group is committed to selling intelligently to clients who demand a premium service where our core and specialist services create a differentiated offering. 

Financial Review

Turnover increased to B#7.31M against B#6.79M in H1 2012.   Vigilant and CSS Locksmiths grew their turnover by 5%,  and Croma Security by 27%.

The group has seen continued pressure on margins, but has held Gross Profit at 24.8% (H1 2012: 25.8%). In spite of a broad based improvement in economic activity, Vigilant's market remains quite competitive.  The group recognises the need to maintain and improve margin through added-value services and cost monitoring. 

Administrative expenses have been held broadly steady at B#1.67M (2012 B#1.64M) 

Borrowing costs have greatly reduced as the group builds up and retains positive cash balances, and invoice discounting has been required less often than in 2012.  As such, the group's cash position is strong.

Debtor days at 31 December were down to 50 (2012: 51). Credit control remains strong, and bad debt expense has been minimal.

The board is grateful to Richard Juett for his work for the group over the last eighteen months, and for implementing the new financial management systems which have greatly assisted the group's growth.  Alex Tetley has taken over as Finance Director and the Board is pleased to welcome him to the Group.

Outlook

The Board considers that the recent investment in new products, management systems and the identification of operational efficiencies have positioned the Group very well for the coming year.

In particular the roll-out of Fastvein and VIPS, both in the UK and abroad, provide real opportunities for growth, and the Board will continue to look for appropriate acquisitions to increase the Group's geographical coverage and service offering.

The board are encouraged by the 6 month's results and outlook for the remainder of the year.  With continued trading present level through the second half of the year, the board would expect to declare a dividend on the full year results.

Sebastian Morley
Chairman
26 February 2014