Croma rises on contract wins, but full year losses widen

Shares in Croma Security Solutions Group (CSSG) got a boost on Monday morning after announcing two contract wins, which helped soften the blow of an increased loss for the full year ended June 30th.

For the year to June 30th, revenue grew 17% from £8.5m to £9.9m, but pre-tax losses increased to £0.5m from £0.1m in 2011.

This was partly because the cost of sales climbed from £6.8m to £8.1m, while the firm also paid out £0.37m in acquisition costs, having paid none the previous year.

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Gross profit for the year was at £1.76m, compared to £1.62m the previous year.

During the period it also placed £5.0m of shares and had a share consolidation. Its net asset value per share was 57.9p at the end of the period.

Post year-end the firm announced two contract wins; one with UK Land worth £250,000 and another with Odeon Cinemas worth £70,000.

Under the UK Land contract CSSG will provide security officers to work alongside CSSG's range of enhanced integrated systems in order to secure a number of commercial office premises.

Odeon Cinemas has given the company a three-year contract to install and maintain CCTV systems across the ODEON Cinemas estate, in excess of 100 sites.

The newly enlarged group appears to be making progress in recasting itself as a security specialist, from just being a manned guarding business, following its reverse takeover of CSS on March 27th, 2012.

With the acquisition of the CSS Companies the group now comprises four key operating divisions: Croma Vigilant (guarding and asset protection); Croma Locksmiths (locks, safes and keys); Croma Security Systems (security and fire); and Croma Biometrics (identity management and access control).

The Liontrust fund, which has a good track record of spotting investment opportunities, has an 8.27% stake in the company, while 22.91% is closely held by Chief Executive Officer Roberto Fiorentino.

CM