15th Sep 2022 10:30
(Alliance News) - Croma Security Solutions Group PLC shares jumped on Thursday as it said it has won four new contracts worth GBP6.1 million.
Shares in the Hampshire, England-based security services provider were up 7.8% to 69.00 pence each in London on Thursday morning.
Croma Vigilant, the manned guarding division, said it has won a three-year contract with a London property manager worth GBP5.0 million per year. Under the agreement, Croma Vigilant will provide manned guarding services across a portfolio of commercial properties in central and greater London.
The same London property manager also has awarded Croma Vigilant's PROception business a three-year contract, worth GBP500,000 per annum, to provide its front of house services which incorporates the buildings reception into the overall security strategy.
Both contracts have the option to be extended for another two years.
The third contract, also won by Croma Vigilant, is a three year security contract to provide manned guarding services for a large retail space in north east England. It is worth GBP400,000 per year.
The final agreement signed is for the iLOQ product and worth GBP300,000 annually, together with ongoing maintenance support fees. The customer is a "well-known UK company in the education sector", Croma noted. It also expects this order to be the first of an expected series of orders.
"iLOQ, is a battery free digital door lock opened by smartphone and also powered by the mobile phone opening it," Croma explained.
In October last year, Croma entered a strategic partnership with Finish company iLOQ to be the principal distributor and service operator of the iLOQ product in the UK.
Together the contracts are worth GBP6.1 million and are equivalent to 17% of total sales.
Turning to trading, Croma said it estimates that it will deliver at least GBP1.5 million of earnings before interest, tax, depreciation and amortisation in its financial year to June 30, 2022. In financial year 2021, the company reported Ebitda of GBP2.0 million.
Croma explained that profitability has been hit by investment; however it added that the investments have positioned the business well for the future.
"The year has been a period of investment in technology and new service offerings with a focus on training, in particular, for the installation of the iLOQ product, and retention of key staff," Croma added.
Croma expects to announce its financial year 2022 results in late October.
Chair Sebastian Morley said: "These contracts taken together are substantial for our business and reflect the significant investment that has gone into ensuring the company is well positioned to win such awards. The perceived additional value of PROception's services by customers is amply demonstrated with this combined win and the iLOQ win is perhaps a signal of further contracts to come now we have a trained team in place, to support customers on a national basis."
By Sophie Rose; [email protected]
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