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Croma Security Solutions Group PLC (CSSG)

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WickedLester
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Croma Security Solutions Group PLC (CSSG)

#431492

Postby WickedLester » July 30th, 2021, 2:40 pm

This is yet another small cap from me so be prepared for poor liquidity and a horrendous spread.

I have bought a small shareholding in this company because it looks cheap to me.

https://www.cssgplc.com/

The market cap at the current price is about £11m. The company's main areas of business are providing security guards and front of house staff for commercial premises and they also have a locksmith business which is much smaller. The security business specialises in supplying ex armed forces personnel as a differentiator to normal security where virtually any Tom, Dick and Harriet is employed.

https://www.investegate.co.uk/croma-sec ... 00075739Q/

The balance sheet is very strong and at the last reporting date they had net assets of £11.8m and net tangible assets of around £5m including a substantial net cash pile which has grown to around £5.5m according to the latest trading statement. The latest trading statement also says they expect to make an EBITDA of £1.85m, ahead of management forecasts. It is this that makes me feel the shares are cheap; with the cash stripped out they are on a multiple of just 3*EBITDA or so.

There was no dividend but in the latest trading statement they say:

https://www.investegate.co.uk/croma-sec ... 00112227D/

At the half-year, the Board decided not to pay an interim dividend as a precaution given the general market uncertainties and instead wait until the year to pay to shareholders a final dividend which reflects the strength of the full year performance once it has been delivered. It is clear, the Company will achieve results ahead of the previous year and the final dividend is expected to reflect this.

This gives me hope that there will be a healthy dividend with the finals later this year.

The Directors have been buying shares, although not huge amounts but have at least a reasonable amount of skin in the game. There is also a major shareholder with over 26% of the shares. He may decide to bid for the rest at some point.

All in all it looks like a safe home for some cash in a company with a very strong balance sheet making a healthy profit and that should return to paying a decent dividend for a low price. If they can grow the business too then that will be the icing on the cake.

Any views?

WickedLester
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Re: Croma Security Solutions Group PLC (CSSG)

#447632

Postby WickedLester » October 4th, 2021, 8:11 am

There's a rather pleasing trading statement from these today.

https://www.investegate.co.uk/croma-sec ... 00078266N/

The Board is pleased to confirm that demand for its security services has been high and as a result expects to deliver a strong set of results with EBITDA for the 12 months to 30 June 2021 ahead of the guidance given in June 2021 of £1.85 million. The improved trading performance has come from across all areas of the Company's operations.

WickedLester
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Re: Croma Security Solutions Group PLC (CSSG)

#451917

Postby WickedLester » October 21st, 2021, 10:22 am

The final results are out today and they appear very good, i'm quite surprised to see the price fall.

https://www.investegate.co.uk/croma-sec ... 00027255P/

Financial Highlights

· 13% uplift in EBITDA to £1.98m (2020: £1.75m)

· Generated revenue of £32.5m (2020: £32.3m) slightly above the prior year

· Furlough and grant income of £0.76m (2020: £0.62m)

· Increase in profit before tax to £1.21 m (2020: £0.09m)

· Strong cash position of £5.4m as at 30 June 2021 (2020: £4.1m)

· 2.6% increase in total dividend for the year to 2.0p (2020: 1.95p) reflecting confidence in the outlook for all Group businesses


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