27th Feb 2014 07:00
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 monthsended | YearEnded | ||||
31 December2013 | 31 December2012 | 30 June2013 | |||||
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 monthsended | 6 monthsended | Yearended | ||||
31 December2013 | 31 December2012 | 30 June2013 | ||||
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 the2013 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
Related Shares:
Croma Security