Post on 26-Apr-2018
corporate highlights
• Transformational reverse takeover and £5m Placing successfully completed – business rebranded
as croma security solutions group plc (croma security solutions)
• Acquisition creates a security services specialist operating across four key divisions
• Vertically integrated offering, providing a more streamlined and cost-efficient service, opens up
significant national client opportunities seeking a one-stop shop
• Major contract wins in 12 months with Odeon, Colas, NHS, UK Land Plc
• FastVein®, a complete biometrics system, deployed at London 2012 Olympics
• Strengthened Board with Sebastian Morley and Roberto Fiorentino assuming Chairman and CEO
responsibilities respectively, with new FD Richard Juett joining in June
• New Southampton headquarters ideally placed for gaining new business throughout London and
the South East
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FY2012 FY2011
Revenue £9.90m £8.46m
Gross profit £1.76m £1.62m
Adjusted EBITDA1 £0.10m £0.32m
Admin expenses £(1.7)m £(1.2)m
Operating Profit / (Loss) £(0.41)m £0.51m
Profit / (Loss) Before Tax £(0.49)m £0.14m
Earnings per share (4.59)p (16.53)p
Net Debt2 £(0.08)m £(1.68)m
Notes : 1) EBITDA adjusted to exclude non-recurring acquisition costs
2) Cash, cash equivalents and borrowings 4
financial highlights
croma vigilant – guarding & asset protection
• High grade professionals providing manned guarding and asset protection
for individuals and companies. USP is the specific provision of ex-military
personnel
• Provides a vital part of croma security solutions’ integrated offering
• Blue chip client base including Halliburton, ArcelorMittal and MoD. Broad
range of historical clients provides for immediate cross selling opportunities
across the group
• Contract wins in period with Great Portland Estates, NHS, UK Land Plc
• Financial numbers for the period reflect investment made in growing
business expansion into a national business and infrastructure
• croma vigilant clients starting to adopt services from croma security
systems division
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croma biometrics – identity management
• Over 20 years experience in biometrics and identity management. State of
the art identity management control systems. Available as a stand alone
product or integrated with existing security systems. Military and
commercial specifications both available
• Pioneers of FastVein® biometric system - a finger vein identification
technology and the most advanced biometric system available. FastVein®
ISO verification certainty of one million to one. FastVein® now moving from
investment phase towards being a net contributor
• FastVein® adopted by 18 HM Prisons and Immigration Removal Centres,
and successfully trialled by Southampton Hospital’s Intensive Care Unit.
FastVein® successfully used by Dorset Police Special Events Control
Centre for London 2012 Olympic sailing
• Other croma biometrics services include Armoury Quartermaster, Bail
Manager and Bio ID
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croma security systems – security & fire
• Professional security consultants, designers, suppliers, installers and maintainers
of all aspects of electronic security and fire systems
• Services incorporate design and integration of systems for intruder alarms, fire
alarms, CCTV, access control, car park barriers, turn-styles, perimeter detection
systems, fencing and security systems management and training
• Combining electronic security systems and specialist ex-military trained officers to
provide a more comprehensive integrated solutions service
• Redirection of sales effort on new national accounts where expertise applies
(i.e. UK Land Plc contract)
• Partnered with Odeon Cinemas for all aspects of security, including CCTV
maintenance. 40 new builds planned over next four years
• First contract order delivered to Colas reaffirming croma security solutions’
departure from traditional security services using technical capabilities to deliver
intelligent CCTV cameras to traffic management. Significant investment made to
date to help drive future contracts
• UK Land Plc contract demonstrates large client opportunities which require the
complementary provision of manpower and electronic systems
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croma locksmiths – locks, safes and keys
• Over 40 years experience in the design, supply, installation and
maintenance of master key systems and all aspects of locks, keys and
safes
• Master Locksmiths accreditation delivers clients with the assurance of
quality services
• Increasing sales throughout the south east driven by national accounts
including Odeon against backdrop of tough economic climate and over-
saturated local market
• Specialist training investment in the design and installation of automatic
door operator applications to meet an increased and growing pipeline of
new orders
• Contract signed with Carnival Cruises for the provision of mechanical
security locksmithing services
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summary profit & loss
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FY2012 FY2011 Commentary
£000's £000's
Revenue 9,894 8,458 Revenue has increased due to organic growth in Vigilant and the inclusion of the
turnover of the businesses of the CSS companies
Cost of sales (8,138) (6,840) 2012 saw a similar increase in costs of sales
Gross profit 1,756 1,617 The gross profit percentage dipped slightly with sales mix and continued margin
pressure across the group
Administrative expenses (1,661) (1,163) Administrative expenses increased on acquisition and also and reflect organic growth
in Vigilant
Depreciation and amortisation (133) (133) Included in the 2012 is £52k of amortisation costs charged against intangible assets
acquired with the CSS companies which are required to written off over their useful
lifesOperating (loss)/profit from trading activities (38) 322
Costs of borrowing (78) (179) Reduced borrowing costs mostly reflect the repayment and conversion of loan notes
(Loss)/Profit before tax and non- recurring items (116) 143
Corporation tax 68 (26)
Non-reoccurring items
Costs of acquiring the CSS companies (370) - This is the costs of professional fees incurred in acquiring the CSS companies
Profit/(loss) on discontinued operations 115 (743) £115k is the deferred income element from disposal of RDDS in 2011
Retained loss for the Year (303) (626)
summary balance sheet
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FY2012 FY2011 Commentary
£000's £000's
Goodwill & Intangibles 7,488 1,396 Goodwill of £4,470K arose on the acquisition of CSS group along with intangible assets
including brands and customer relationships of £1,674
Tangible fixed assets 402 183 Most significantly £257K, of tangible fixed assets were acquired with the CCS Group
Inventories 180 - This is the electronic components etc… of Croma Security and Locksmiths
Trade debtors & Other Receivables 2,706 2,232 There has been no significant increase in debtor days nor in bad debts
Cash & Equivalents 693 597 The CSS companies have zero external borrowings, this has helped bolster the cash
position at the year end
Total Assets 11,469 4,408
Trade payables (454) (360)
Other payables (698) (164) Other payables include £401K of deferred consideration in acquiring the CSS companies.
Of this, £152K is estimated to be satisfied with new equity
Current income tax liabilities (689) (385) The increase in tax liabilities is reflective of the size of the businesses as a whole including
staff numbers (PAYE and NI) and customers (VAT)
Provisions (including deferred tax) (453) (30) Included here is a deferred tax provision of £401K which is connected with the intangible
assets acquire with the CSS Companies
Convertible loan notes (240) (1,398) The final tranche of loan notes is due for repayment in 2012/13
Invoice discounting & overdrafts (532) (884) The group as an invoice discounting facility being 85% of book debts subject to a maximum
of £2M
Total liabilities (3,065) (3,222)
Total net assets attributable to the shareholders 8,404 1,186 This is reflective of the new equity placing in March 2012
13
• Foundations now being laid to support the move to providing national services and new employees
have been recruited. These efforts are essential to enable the business to develop as a national
organisation
• Expansion of service offering to core client relationships including Odeon and Colas through
vertically integrated approach
• Necessary investment to improve IT infrastructure and general infrastructure in order to support and
drive new client remits
• International opportunities opening up within territories including Pakistan
• Market opening up with police cut backs and growing concern over safety and protection
• Stronger management team. Fully integrated service offering. Clear and coherent corporate
strategy. Opportune marketplace. Ready to move…
croma security solutions – strategy & outlook
croma security solutions – a strong professional partner
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croma security solutions – shareholder data
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Shareholder Total holding as
at 05.11.12
% of share
register
Total director holding 4,078,447 28.12%
Roberto Fiorentino 1,468,074 10.12%
Liontrust 1,200,000 8.27&
W H Ireland 1,127,333 7.77%
Oceanwood 800,000 5.52%
Blackrock 600,000 4.14%
Brewin Dolphin 576,000 3.97%
Artemis 573,333 3.95%
CQS 533,333 3.68%
Key
information
As at 05.11.12
Market Cap
£6.3m
Share price
43.5p
Market AIM
Ticker
CSSG
croma security solutions – management team
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Sebastian Morley – Chairman, croma security solutions
Mr Morley is the former Group CEO of croma, and joined the company in 2006. He was
formerly a Captain in The Black Watch, and has held the rank of Major for the United
Kingdom Special Forces. Mr Morley was educated at Eton and Sandhurst.
Roberto Fiorentino – CEO, croma security solutions
Mr Fiorentino is the former CEO of CSS Locksmiths and CSS Total Security. He has over
30 years experience in the security industry, and has a proven track record for developing
ground-breaking security technology, including Video Analytics.
Richard Juett – Finance Director, croma security solutions
Mr Juett joined croma security in June 2012 from CQFD where he was Director of
Finance. During his career he has been Financial Controller of Greatstar, Tax and
Treasury Manager at Kia Motors, and Corporate Tax Manager at BDO Stoy Hayward. He
is a qualified Chartered Accountant.
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Charles Neil McMicking - Non Executive, croma security solutions
Mr McMicking is currently Chairman of RailSimulator.com and director of Coburg Capital
and F4G Software. Mr McMicking has specialised in financing and developing dynamic
fast-growth companies for the last 16 years, and was previously Head of Private Equity at
Noble Group. Mr McMicking joined the Board of the Enlarged Group with effect from
Admission and is chairman of the remuneration committee.
Lord James William Eustace Percy - Non-Executive Director, croma security solutions
Lord James Percy is Colonel of the 5th Battalion Royal Regiment of Fusiliers and a member
of the Moorland Association, as well as former Chairman of the Countryside Foundation for
Education. Lord James Percy joined the Board of the Enlarged Group with effect from
Admission.
Andrew Nicholas Hewson - Non-Executive Director, croma security solutions
Mr Hewson has been an investor in Croma since 1998, joining the Board in 2005 as a non-
executive director; taking over as non-executive Chairman in 2008 and encouraging the
Group to sell loss-making businesses and make its maiden profits, and in 2009
reorganising its capital base so as to be in a position to pay a dividend. Mr Hewson is
chairman of the audit committee.
croma security solutions – management team
contact
coma security solutions group plc
Unit 6, Fulcrum 4
Solent Way, Whiteley
Hampshire PO15 7FT
Tel: 01489 566101
Fax: 01489 565375
Web: www.cssgroupplc.com
Email: info@cssgroupplc.com