14th Nov 2013 10:48
LONDON (Alliance News) - Croma Security Solutions Group PLC Thursday said it swung to an operating profit in its last financial year as revenues grew, but it said investments it made in revamping the business and some delays to orders meant its profit had fallen short of expectations.
Still, the security company was more positive about its outlook, saying profits in the current year will grow.
The company merged with CSS Companies in 2012 and has been reshaping the company since, renegotiating a costly contract, sub-contracting out some work, enhancing its sales team and improving and optimising its product portfolio.
"This year we have noticed that the decline in underlying sales from our traditional day to day operations has not only halted but in the case of maintenance revenue we have seen steady growth. In addition, we have seen certain niche market applications coming to fruition. These indicators lead us to be optimistic for the year ahead and indeed this is supported by our results for the first quarter 2014," the company said in a statement.
It reported an operating profit of GBP93,617 for the year to June 30, compared with a loss of GBP407,762 a year earlier, although the profit was below its hopes. Revenues rose strongly to GBP13.3 million from GBP9.9 million. Its net profit was GBP79,796 compared with the previous year's loss of GBP302,952.
"The board remain optimistic that we will see a continued improvement in operating profits for the coming year," it said.
Still, Croma Security Solutions shares were down 19% at 16.20 pence Thursday morning, the biggest decline on AIM.
By Steve McGrath; [email protected]; @stevemcgrath1
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