20th Dec 2022 14:59
(Alliance News) - Croma Security Solutions Group PLC on Tuesday said its subsidiary CSS Total Security Ltd acquired Safecell Security Group Ltd and its two subsidiaries.
The Hampshire, England-based security services provider acquired the Manchester, England-based security business and its two wholly-owned subsidiaries for an initial consideration of GBP450,000, and a deferred cash consideration of around GBP300,000 by March.
The news comes after Croma announced two weeks ago that it planned to divest its manned guarding business Croma Vigilant. Its future strategy is now "re-focused" around the development of the Croma Security Systems Ltd and Croma Locksmiths Ltd businesses, it said.
Despite Vigilant securing a number of contract wins in the current financial year, the strategy of combining Vigilant with the Croma Locksmiths and Croma Security Systems businesses has "not generated" the opportunities for cross marketing and cross sales it expected, the company explained.
The acquisition of Safecell adds another security centre to Croma Security's portfolio, expanding its UK footprint to 14 centres, and Croma said it is expected to be immediately earnings enhancing.
Between January to November 2022, Safecell recorded revenue of GBP850,000, with full year projection of GBP930,000, including reoccurring revenue of GBP400,000 and pretax profit GBP190,000. In the year that ended June 30, Croma reported an 8% increase in revenue to GBP35.2 million, although pretax profit declined 84% to GBP200,000 from GBP1.2 million.
Croma expects to immediately benefit from providing in-house services to clients in Manchester and surrounding areas. Going forward, these will now be serviced via the Safecell team.
"We are re-focusing our company on our higher margin security solutions businesses alongside establishing a national network of security centres. After a slower period during the pandemic, opportunities such as Safecell are emerging which are a natural fit with our objectives, and we are hopeful of completing similar earnings enhancing acquisitions in 2023," Croma Chief Executive Roberto Fiorentino said.
Previously, Croma said its Vigilant's management team expressed interest in acquiring Vigilant from the group. Vigilant is led by Croma's Executive Director & Vigilant's Operations Director Paul Williamson, and is supported by Executive Chair & Managing Director Sebastian Morley. Both Morley and Williamson stepped down from Croma Security Solutions on December 6 to pursue the acquisition.
Shares in Croma Security were up 1.8% to 58.00 pence on Tuesday afternoon in London.
By Jaskeet Briah, Alliance News reporter
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