INTERIM RESULTS

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
 
 
IR LFFFFFDIRFIS
UK 100

Latest directors dealings