Half-year Financial Report

Croma Security Solutions Group PLC

26 February 2026

 

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

                                                                                                26 February 2026

Croma Security Solutions Group PLC

("CSSG", "Croma", the "Company", or the "Group")

Interim Results

'A Period of planned Investment and Reorganisation for Future Growth whilst

Remaining On-Track to Meet Full-Year Targets'

Croma (AIM:CSSG), the AIM listed innovation and service-focused security solutions provider, is pleased to announce its unaudited interim results for the six months to 31 December 2025 ("H1" or the "Period").

Commenting on the Half-Year trading performance, Croma Chief Executive, Roberto Fiorentino said: "We recorded a 9% uplift in revenues, consolidated our portfolio, reset our advertising strategy and invested in expanding our management team to support our business as we scale-up. A very active period, preparing the business for the integration of further acquisitions and whilst we recorded a planned reduction in profit, we now have a better structured portfolio and a stronger team with which to support the future growth of the business. Entering the second half of this financial year, we completed the acquisition of TLS Security Systems Limited in Taunton and remain on track to meet full year targets."

Financial performance in H1

·    Group revenue of £5.0 million (HY25: £4.6 million) up 9% benefitting from acquisitions made in the prior financial year though held back by planned security centre refurbishments and the strategic consolidation of four branches into two, alongside customer caution in the lead up to the 2025 Autumn Budget. In addition, online sales were temporarily reduced following a Google Ad strategy reset and a complete reindexing of online stock, positioning the platform for significant online sales improvement moving forward.

·     Higher costs, primarily investment as planned into the business and in key management hires to support future expansion led to:

o  EBITDA of £0.436 million (HY25: £0.572 million)

o  Profit before tax of £0.252 million (HY25: £0.456 million)

o  Earnings per share of 1.35p (HY25: 2.25p)

·     Financial position remains robust with no debt and cash at period end of £4.4 million (HY25: £4.2 million) with a further £0.85 million due from the disposal of Vigilant by June 2026

·      Net asset value per share 113p (HY25: 111p)

Operational performance

·     Despite a cautious market environment both the fire and security and locksmith divisions delivered resilient trading performances

·      Education, utilities, healthcare, and leisure remain the Group's principal customer sectors

·     Streamlined the portfolio through the merger of two security centres in Peterborough and two in Southampton, with the merged locations refurbished, alongside the refurbishment of a further store in Portsmouth.

·   Good progress on expanding the pipeline of acquisition targets with the expectation of completing further transactions in H2 2026

·      Reset Google advertising strategy creating a better longer-term balance between Google ad spend and online sales generation and profitability

·      Significant investment in people across Operations, HR, Engineering and Head Office

·      Welcomed John Wakefield as Non-Executive Chair and Andy Wonnacott as Non-Executive Director

Trading in H2

·   Positive trading performance since the half-year with a strong new business pipeline to support the Board's confidence in the outlook for the full year

·    On 2 January 2026, completed the acquisition of TLS Security Systems for £0.47 million, and its freehold retail premises for £0.20 million

o  An established locksmith business based in Taunton, Somerset taking Croma's security centre network to 17 locations

o  Annual revenues of £0.94 million and EBITDA of £0.11 million for 12 months to 31 March 2025

o  Excellent market position in the healthcare sector with clear opportunities to cross-sell additional Group services 

·      The Board intends to declare a single final progressive dividend with the FY26 results

Video Q&A with CEO Roberto Fiorentino

For further information visit www.cssgplc.com or contact:

Croma Security Solutions Group Plc                                               Tel: [phone]

Roberto Fiorentino, CEO

Teo Andreeva, CFO

Zeus                                                                                                     Tel: [phone]

(Nominated Adviser and Broker)

Mike Coe

James Bavister

Novella                                                                                                 Tel: [phone]

Tim Robertson

Aeliya Bilgrami

Notes to editors:

Croma Security Solutions is an expanding technology led security solutions provider with over 50 years of specialist experience, delivering high-quality security solutions across locksmith, fire and security services for both domestic and commercial environments. The Group's UK network currently stands at 17 security centres, stretching from its headquarters in Southampton, across the Midlands and up to the Northwest. Croma services a range of sectors including health, education, leisure and entertainment, and utilities, and is trusted by national brands, including multiple NHS Trusts with their demanding and complex security needs.

Croma's growth strategy is focused on establishing a national security network. In 2023, it sold its man-guarding business Vigilant for £6.5m, which has provided the capital to fund the expansion of the business. Croma is a proven acquirer of local, traditional locksmith businesses, which are developed into its network of modern security centres, offering both total security solutions and locksmith services to retail and commercial customers. The new security centres benefit from extended product ranges, centralised group services, and both a local and national customer base. Since the Vigilant sale in 2023, Croma has added new businesses to its network, and has a strong pipeline of further locksmith stores to be acquired into the network.

Croma is listed on the AIM market of the London Stock Exchange. Founded in 1970, it is headquartered in Southampton and has over 90 employees.

CEO Statement

Interim Results for the Six Months Ended 31 December 2025

Croma is a growth business, and we signalled in the early part of 2025 that the Company needed to invest in key personnel and reorganise aspects of the Company to ensure we have the necessary breadth of skills and structure to facilitate the execution and integration of our acquisition pipeline. During this six-month trading period we successfully reorganised key parts of the business and welcomed a number of senior hires, establishing an improved base from which to grow the Company.

These actions were absorbed into our trading performance holding back topline sales growth to 9% and reducing profitability in the short term. However, the actions to consolidate and refurbish the portfolio, and the resetting of the Google Ad strategy are already increasing current profitability and are expected to do so for the long-term.

Financially, the Company is in a strong position with no debt and cash of £4.4 million; a position that will be further enhanced by £0.85 million due by June 2026, relating to the final two payments owed from the sale of the manned guarding business, Vigilant.

The second half of the current financial year started strongly with the acquisition of TLS, a well-established locksmith in Somerset with a strong presence in the healthcare sector. This acquisition, together with the post Budget improvement in customer sentiment adding good visibility to expected incoming orders, means the Board is confident of meeting market expectations for the full year.

Financial Performance
For the six months ended 31 December 2025, the Group delivered revenue of £5.0 million, representing a 9% increase compared with £4.6 million in the same period last year. This growth includes contributions from the acquisitions completed in Peterborough and Leeds.

As expected, profitability was lower during the period, primarily reflecting the planned increased investment in our people and the wider business. EBITDA for the period was £0.436 million (HY25: £0.572 million), while profit before tax was £0.252 million (HY25: £0.456 million). Earnings per share for the period were 1.35p (HY25: 2.25p).

The balance sheet remains strong, with no debt and cash of £4.4 million at the period end with a further £0.85 million due to be received by June 2026 in respect of Vigilant.

Dividend

In line with last year, the Company is not proposing an interim dividend but intends to declare a single final progressive dividend with the FY26 results.

Operational Progress

We are building a larger business with the objective of developing Croma into a national security brand providing a leading range of security products and services. This strategy is being delivered through an acquisition-led expansion of the Group's security centre network, focused on acquiring modestly valued, independent locksmith businesses.

Following acquisition, these businesses will be converted into full-service security centres with a broader product and service offering, while benefiting from Croma's inherent advantages in software, centralised purchasing and the elimination of duplicated costs. The Group currently operates 17 security centres and is targeting the addition of between three and five new centres in each financial year.

The acquisition pipeline continues to be successfully progressed and the focus in H1 was on investing in and reorganising parts of the business to better support the next phase of growth. As previously indicated, this investment was expected to reduce profit in the short term and will materially enhance the Group's operational capability in the longer term. A key priority was the expansion of the management team to ensure the business can operate efficiently while simultaneously progressing and executing the acquisition pipeline. As a result, the Group invested in additional resources across Operations, HR, Engineering and Head Office functions.

During the period, we also reset our Google Ads strategy and online sales platform. As the network has expanded through acquisitions, the Group's digital advertising approach had become fragmented and online sales returns were suboptimal. In response, we restructured our relationship with Google Ads, re-indexed the full online product range and relaunched the Group's online store on a new platform. While this reset led to a temporary reduction in online sales, performance is now rebuilding and, importantly, doing so at an improved profit margin.

An increasingly important growth area for the Group is the sale and installation of security and fire doors. Demand has grown across motor-operated hinged doors, sliding doors, roller shutters and fire curtains. These premium products generate attractive margins, with orders received particularly from the leisure and healthcare sectors. There is good visibility on further orders during the current financial year.

In this area, we expect the Terrorism (Protection of Premises) Act 2025 (Martyn's Law / Protect Duty) may become an additional driver of growth. This legislation requires publicly accessible premises - such as hospitals, schools, theatres, and shopping centres - to implement proportionate security measures without compromising fire safety. Croma is well positioned because we understand both electronic security systems and compliant mechanical door hardware. Many competitors cannot integrate both and the Group is already engaging with clients through CPD-accredited events and requests for guidance. 

In January 2026, we completed the acquisition of TLS for £0.47 million, a well-established locksmith business based in Taunton, Somerset, and its freehold retail premises for a further £0.20 million. TLS generated revenues of £0.94 million and EBITDA of £0.11 million for the 12 months to 31 March 2025. Founded in 1991 as locksmith and safe engineers, TLS has since expanded into electronic access control, CCTV, door automation and UPVC door repairs. The business is integrating well into the Group and is well positioned to contribute meaningfully, supported by its strong orderbook.

We continued to optimise our network of security centres to drive efficiencies and synergies. Following the acquisition of Ben Lock & Safe in Peterborough, operations were successfully consolidated with Croma's existing Peterborough branch into a single security centre. With no competing locations in the town, the consolidated site is well placed to retain the full customer base of both businesses. In Southampton, the Portswood security centre was merged with our nearby Shirley centre, a natural consolidation given their close proximity. This decision was accelerated by the landlord of Portswood, unexpectedly terminating the lease after 25 years.

Our experience at Portswood reinforces the strategic value of operating from freehold properties. Freehold ownership provides long-term control over established locations, flexibility to upgrade sites into modern Croma security centres, cost stability and enhanced financial predictability. In addition, it offers optionality to raise capital by leveraging the Group's freehold portfolio if required. Southsea (Portsmouth), one of the Group's highest-turnover stores, is a freehold property and underwent a significant refurbishment in October 26. While the refurbishment resulted in a short-term loss of sales during closure, these are expected to be more than recouped through increased trading levels going forward.

Outlook

We have good visibility over a very healthy pipeline of acquisitions which we expect will make excellent contributions to expanding the Group driving both future sales and profitability. The work we have completed in the first half of this year was essential to positioning the Company correctly for the future and we are confident of our ability to meet the targets for the current financial year.

CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
			31-Dec-25		31-Dec-24		30-Jun-25
			Unaudited		Unaudited		Audited
			6 months		6 months		12 months
	Notes		£000s		£000s		£000s
	Revenue		4,994		4,580		9,633
	Cost of sales		(2,917)		(2,537)		(5,453)
	Gross profit		2,077		2,043		4,180
	Administrative expenses		(1,941)		(1,716)		(3,643)
	Other operating income		32		6		59
	Operating profit		168		333		596
	Analysed by:
	Earnings before interest, tax, depreciation, impairment and amortisation of intangible assets (EBITDA)		436		572		1,166
	Amortisation		(2)		(30)		(85)
	Depreciation		(266)		(209)		(485)
	Operating profit		168		333		596
	Financial expenses		(19)		(12)		(32)
	Interest receivable		103		135		261
	Profit before tax		252		456		825
	Tax		(65)		(146)		(39)
	Profit and total comprehensive income for the period attributable to owners of the parent		187		310		786
	Earnings per share	3
	Basic earnings per share (pence)		1.35		2.25		5.72
	Diluted earnings per share (pence)		1.35		2.25		5.71

CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2025
	31-Dec-25		31-Dec-24		30-Jun-25
	Unaudited		Unaudited		Audited
	6 months		6 months		12 months
	£000s		£000s		£000s
Assets
Non-current assets
Goodwill	5,274		5,042		5,274
Other intangible assets	21		55		-
Property, plant and equipment	3,800		2,846		3,582
Right-of-use assets	452		496		525
Other receivables	-		1,651		-
Total non-current assets	9,547		10,090		9,381
Current assets
Inventories	1,589		1,230		1,551
Trade and other receivables	2,116		2,202		3,161
Cash and cash equivalents	4,361		4,174		4,328
	8,066		7,606		9,040
Total assets	17,613		17,696		18,421
Liabilities
Current liabilities
Trade and other payables	(1,249)		(1,576)		(1,840)
Borrowings and lease liabilities	(151)		(114)		(149)
	(1,400)		(1,690)		(1,989)
Non-current liabilities
Provisions	(112)		(151)		(111)
Deferred tax	(174)		(217)		(174)
Lease liabilities	(342)		(420)		(419)
Total non-current liabilities	(628)		(788)		(704)
Total liabilities	(2,028)		(2,478)		(2,693)
Net assets	15,585		15,218		15,728
Equity attributable to owners of the parent
Share capital	794		794		794
Treasury shares	(929)		(946)		(929)
Share premium	6,150		6,133		6,150
Merger reserve	2,139		2,139		2,139
Capital redemption reserve	51		51		51
Retained earnings	7,380		7,047		7,523
Total equity	15,585		15,218		15,728

CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
		31-Dec-25		31-Dec-24		30-Jun-25
		Unaudited		Unaudited		Audited
		6 months		6 months		12 months
	Note	£000s		£000s		£000s
Cash (used)/generated from operating activities	4	(38)		222		634
Cash flows from investing activities
Purchase of subsidiaries, net of cash acquired		-		-		(336)
Purchase of property, plant and equipment and intangible assets		(433)		(479)		(1,288)
Proceeds on disposal of discontinued operations		825		2,538		3,363
Net cash from investing activities		354		2,281		2,373
Cash flows from financing activities
Payments to reduce lease liabilities		(75)		(56)		(134)
Dividends paid		(330)		(316)		(316)
Interest paid		(19)		(12)		(32)
Interest income		103		135		261
Treasury shares sale proceeds		-		-		34
Net cash used in financing activities		(321)		(249)		(187)
Net increase in cash and cash equivalents		33		2,032		2,186
Cash and cash equivalents at beginning of period		4,328		2,142		2,142
Cash and cash equivalents at end of period		4,361		4,174		4,328

CROMA SECURITY SOLUTIONS GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
	Share capital		Treasury shares		Share premium		Merger reserve		Capital redemption reserve		Retained earnings		Total equity
	£000s		£000s		£000s		£000s		£000s		£000s		£000s
Balance at 1 July 2025	794		(929)		6,150		2,139		51		7,523		15,728
Profit for the period	-		-		-		-		-		187		187
Dividends paid	-		-		-		-		-		(330)		(330)
Balance at 31 December 2025	794		(929)		6,150		2,139		51		7,380		15,585
Balance at 1 July 2024	794		(946)		6,133		2,139		51		7,053		15,224
Treasury shares acquired	-		-		-		-		-		-
Profit for the period	-		-		-		-		-		310		310
Dividends paid	-		-		-		-		-		(316)		(316)
Balance at 31 December 2024	794		(946)		6,133		2,139		51		7,047		15,218
Balance at 1 July 2024	794		(946)		6,133		2,139		51		7,053		15,224
Treasury shares sold	-		17		17		-		-		-		34
Profit for the year	-		-		-		-		-		786		786
Dividends paid	-		-		-		-		-		(316)		(316)
Balance at 30 June 2025	794		(929)		6,150		2,139		51		7,523		15,728

CROMA SECURITY SOLUTIONS GROUP PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2025

1.   Basis of preparation

The interim financial information in this report has been prepared using accounting policies consistent with UK-adopted international accounting standards ("IFRS"). IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the UK Endorsement Board. The financial information has been prepared on the basis of IFRS that the Directors expect to be adopted by the UK and applicable as at 30 June 2026. As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing the interim financial information. 

Statutory accounts

Financial information contained in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 ("the Act").  The statutory accounts for the year ended 30 June 2025 have been filed with the Registrar of Companies.  The report of the auditors on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Act.  The financial information for the six months ended 31 December 2025 and 31 December 2024 is unaudited.

Going concern

The interim financial report has been prepared on a going concern basis. The Group's activities are funded by long-term equity capital and by cash generated from trading. In considering the ability of the Group to meet its obligations as they fall due, the Board has considered the expected trading and cash requirements of the Group until the end of February 2027. The Board continues to be positive about the retention of customers and the outlook of its trading operations. Profit and cash flow projections support the Board's view that the Group will meet its obligations as they fall due with the use of cash surpluses from trading.

2.   Accounting policies

The accounting policies applied by the Group in this interim report are consistent with those applied by the Group in the audited consolidated financial statements for the year ended 30 June 2025.

3.   Earnings per share

Earnings per share is based upon the profit for the period and the weighted average number of shares in issue and ranking for dividend. The following reflects the profit and shares data used in the basic and diluted EPS computations:

		31-Dec-25		31-Dec-24		30-Jun-25
		Unaudited		Unaudited		Audited
		6 months		6 months		12 months
		£000s		£000s		£000s
Earnings
Earnings from total operations for the purposes of basic and diluted earnings per share being net profit attributable to equity shareholders		187		310		786
Number of shares (thousands)
Weighted average number of shares used in basic Earnings per Share		13,768		13,730		13,739
Weighted average number of shares used in diluted Earnings per Share		13,781		13,748		13,754

The calculation of diluted earnings per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options. A calculation is performed to determine the number of share options that are potentially dilutive based on the number of shares that could have been acquired at fair value, considering the monetary value of the subscription rights attached to the outstanding share options.

4.   Cash generated from continuing operations

		31-Dec-25		31-Dec-24		30-Jun-25
		Unaudited		Unaudited		Audited
		6 months		6 months		12 months
		£000s		£000s		£000s
Operating profit		168		333		596
Depreciation and amortisation		267		295		570
(Increase) in inventories		(38)		(27)		(167)
Decrease in trade and other receivables		163		78		55
(Decrease) in trade and other payables		(499)		(348)		(223)
Corporation tax paid		(99)		(109)		(197)
Cash (used)/generated from operating activities		(38)		222		634

5.   Subsequent events

As part of the Group's ongoing strategy to expand its network of security centres, on 2 January 2026 the Group acquired 100% of the share capital of TLS Security Systems Limited. The business, which operates a security centre in Taunton, Somerset, was acquired for a consideration of £0.47 million on a cash-free, debt-free basis comprising an initial payment of £0.28 million and a deferred balance of £0.19 million, payable subject to the achievement of earnout targets over the 12 months following completion.  In addition, the Group purchased the associated freehold property from the vendor's pension fund for a cash consideration of £0.2 million.

6.   Financial information

The Board of Directors approved this interim report on 25 February 2026. 

A copy of this report can be obtained by writing to the Chief Financial Officer at our registered office; Unit 7 & 8, Fulcrum 4, Solent Way, Whiteley, Hampshire PO15 7FT or from our website at www.cssgplc.com

 

END