CROMA SECURITY SOLUTIONS GROUP PLC — Interim / Quarterly Report 2014

Feb 27, 2014

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RNS Number : 0464B

Croma Security Solutions Group PLC

27 February 2014

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 2012.

HIGHLIGHTS

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

- Gross Profit £1.82M  (H1 2012:  £1.75M)

- EBITDA £0.3M (H1 2012 £0.28M)

- Net Assets £8.67m, cash £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 £7.31m and we continue to target and win high value security projects in the face of reduced corporate spending. PBT grew to £144,000 (2012 H1: £90,000) with EBITDA of £0.3M (2012 H1 £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 £7.31M against £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 £1.67M (2012 £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

CROMA SECURITY SOLUTIONS GROUP PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR 6 MONTHS ENDED 31 DECEMBER 2013

			6 months ended		6 months ended		Year Ended
			31 December 2013		31 December 2012		30 June 2013
			unaudited & unreviewed		unaudited & unreviewed		audited
		Notes	£		£		£
Revenue		1	7,307,794		6,787,667		13,250,699
Cost of sales			(5,492,511)		(5,039,094)		(9,981,692)
Gross profit			1,815,283		1,748,573		3,269,007
Administrative expenses			(1,666,518)		(1,640,060)		(3,195,790)
Other operating income			10,200		10,200		20,400
Operating profit/(loss)			158,965		118,712		93,617
	Analysed as:
	Earnings before interest, tax, depreciation, amortisation and acquisition costs		304,966		279,418		339,518
	Depreciation		(53,565)		(55,316)		(108,491)
	Amortisation		(92,436)		(105,390)		(210,780)
	Impairment of Intangible assets						(84,362)
	Reduction in contingent consideration				-		157,732
	Operating (loss)/profit		158,965		118,712		93,617
Finance expense costs			(15,374)		(28,674)		(50,241)
Profit/(loss) before tax			143,591		90,039		43,376
Tax			(32,308)		(21,118)		36,420
Profit/(loss) for the year from continuing operations			111,283		68,921		79,796
Profit from discontinued operations			-		-		-
(Loss)/profit and total comprehensive (loss)/profit for the year attributable to owners of the parent			111,283		68,921		79,796
Earnings per share		2
Basic earnings per share (pence)
- Earnings from continuing operations			0.75		0.48		0.55
- (Loss)/earnings from discontinued operations			0.00		0.00		0.00
- Total			0.75		0.48		0.55
Diluted earnings per share (pence)
- Earnings from continuing operations			0.75		0.46		0.55
- (Loss)/earnings from discontinued operations			0.00		0.00		0.00
- Total			0.75		0.46		0.55

CROMA SECURITY SOLUTIONS GROUP PLC

CONSOLIDATED  STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2013

	31 December 2013		31 December 2012		30 June 2013
	unaudited & unreviewed		unaudited & unreviewed		audited
Assets	£	£	£	£	£	£
Non-current assets
Goodwill		5,866,961		5,866,961		5,866,961
Other Intangible assets		1,233,726		1,515,914		1,326,162
Property, plant and equipment		364,936		412,165		385,915
		7,465,623		7,795,040		7,579,038
Current assets
Inventories	211,559		212,263		220,202
Trade and other receivables	2,431,326		2,717,568		2,651,009
Cash and cash equivalents	836,954	3,479,839	360,757	3,290,588	677,858	3,549,069
Total assets		10,945,462		11,085,629		11,128,107
Liabilities
Non-current liabilities
Deferred tax	(314,708)		(418,154)		(368,447)
Trade and other payables	(19,822)		(21,564)		(27,091)
Provisions	(1,422)	(335,952)	(6,762)	(446,480)	(4,119)	(399,657)
Current liabilities
Convertible loan notes	-		(243,710)		-
Trade and other payables	(487,658)		(831,978)		(475,325)
Other taxes & Social Security	(934,686)		(625,980)		(844,042)
Accruals and deferred income	(408,499)		(262,894)		(328,959)
Borrowings	(112,049)	(1,942,892)	(201,937)	(2,166,499)	(524,789)	(2,173,115)
Total liabilities		(2,278,844)		(2,612,979)		(2,572,772)
Net assets		8,666,618		8,472,650		8,555,335
Issued capital and reserves attributable to owners of the parent
Share capital		743,307		725,127		743,307
Share premium		5,230,276		5,176,644		5,230,276
Merger reserve		2,139,454		2,139,454		2,139,454
Retained earnings		131,259		(9,682)		19,976
Undistributable Reserves		422,322		422,322		422,322
Other reserves		-		18,785		-
Total equity		8,666,618		8,472,650		8,555,335

CROMA SECURITY SOLUTIONS GROUP PLC

CONSOLIDATED SATATEMENT OF CASHFLOWS FOR 6 MONTHS ENDED 31 DECEMBER 2013

		6 months ended		6 months ended		Year ended
		31 December 2013		31 December 2012		30 June 2013
		unaudited & unreviewed		unaudited & unreviewed		audited
		£		£		£
Cash flows from operating activities
Profit/(loss) before taxation		143,591		68,921		43,376
Depreciation, and amortisation		146,001		108,904		403,633
(Profit)/loss on sale of plant and equipment		(2,887)				(1,432)
Movement on provisions		(2,697)				(5,350)
Net changes in working capital		324,881		(295,336)		(95,751)
Financial expenses		15,374				50,241
Taxes paid		-		-		(2,718)
Net cash generated/(used) from operations		624,263		(117,511)		391,999
Cash flows from Investing activities
Acquisition of subsidiaries net of cash						-
Purchase of property, plant and equipment		(39,200)		(63,914)		(85,097)
Proceeds on disposal of property, plant and equipment		9,500		-		26,163
Cash proceeds from disposal of subsidiary net of cash disposed				207,903		-
Net cash generated/(used) in investing activities		(29,700)		143,989		(58,934)
Cash flows from financing activities
Hire purchase payments				(4,857)		(43,722)
(Repayments)/advances on invoice discounting facility		(424,100)		158,878		(7,264)
Repayment of borrowings				(600,000)		(243,710)
Issue of share capital - cash issue				-		-
Interest paid		(11,368)		(63,957)		(46,235)
Net cash (used) in financing activities		(435,468)		(509,936)		(340,931)
Net increase/(decrease) in cash and cash equivalents		159,096		(483,458)		(7,866)
Cash and cash equivalents at beginning of period		677,858		511,344		685,724
Cash and cash equivalents at end of the period		836,954		27,886		677,858

NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR 6 MONTHS TO 31 DECEMBER 2013

1.  Basis of preparation

The financial information in the half yearly report has been prepared using the recognition and measurement principles of International Accounting Standards, Intrernational Financial Reporting Standards and Interpretations adopted for use in the European Union ("IFRS").

The principal accounting policies in this half yearly report are unchanged from those applied in the

2013 financial statements. The financial information for the six months ended 31 Decenber 2013 and the six months ended 31 December 2012 are unaudited and unreviewed.

The financial statements for the year ended 30 June 2013, which were prepared in accordance wirth IFRS, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, have been delivered to the Registrar of Companies.

The auditors' report on these accounts was unqualified and did not contain a statement under sections 498(2) and 498(3) of the Companies Act 2003.

While the financial information in this half yearly report is consistent with the recognition and meaasurement principles of adopted IFRS, it does not comply with the requirements of IAS34 Interim Financial Reporting nor does it constitute statutory accounts within the meaning of the Companies Act 2006.

2.  Earnings per share

Earnings per share is based upon the profit/(loss) for the period and the weighted average number of shares in issue and ranking for dividend

The following reflects the profit and share data used in the basic and diluted EPS computations:

	6 months ended		6 months ended		Year ended
	31 December 2013		31 December 2012		30 June 2013
	unaudited & unreviewed		unaudited & unreviewed		audited
	£		£		£
Numerator
Profit/(loss) for the year on continuing operations and used in basic EPS	111,283		68,921		79,796
	-		-		-
Profit/(loss) used in diluted EPS on continuing operations	111,283		68,921		79,796
Profit for the period on discontinued operations and used in basic and diluted EPS	-		-		-
Denominator
Weighted average number of shares used in basic EPS	14,866,138		14,502,532		14,556,326
Effects of:
-   Convertible debt *	-		-		-
-  Deferred consideration to be satisfied with shares	-		363,606		-
Weighted average number of shares used in diluted EPS	14,866,138		14,866,138		14,556,326

3.  Taxation

Taxation has been provided for at 23.75%

4.  Financial Information

The Board of Directors approved this interim report on 26 February 2014.

A copy of this report can be obtained by writing to the Company Secretary at our registered office; Unit 6 Fulcrum 4, Solent Way, Whiteley, Hampshire PO15 7FT or from our website at www.cssgroupplc.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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