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.
15 September 2022
CROMA SECURITY SOLUTIONS GROUP PLC
("CSSG" or the "Company")
Major Contract Wins & Trading Update
Croma Security Solutions Group Plc, the total security services provider, is very pleased to announce four new contract wins worth £6.1 million in annual revenue (equivalent to 17% of Group total sales) and confirmation that the Group expects to announce Final Results for the 12 months to 30 June 2022 in late October and deliver EBITDA of at least £1.5 million.
Contract Wins
Croma Vigilant, the manned guarding division, has won a competitive three year contract with a major London property manager worth £5.0 million per annum. A substantial contract under which Croma Vigilant will provide manned guarding services across a portfolio of commercial properties in central and greater London. In addition, the same London property manager has awarded Croma Vigilant's PROception business a three year contract, worth £0.5 million per annum, to provide its front of house services which incorporates the buildings reception into the overall security strategy. The contracts together are worth £5.5 million per annum and both have the option to be extended for another 2 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 the North East of England worth £0.4 million per annum.
The fourth contract is for the innovative iLOQ product and worth £0.3 million per annum together with ongoing maintenance support fees. The customer is a well-known UK company in the education sector and this order is 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. In October 2021, Croma formed a strategic partnership with iLOQ, a Finnish company, to be the principal distributor and service operator of the iLOQ product in the UK. This is the first major installation in the UK. iLOQ being batteryless, totally secure, with excellent data collection and centralised control features is expected to continue to generate commercial interest.
Trading Update
The Company will announce results for the 12 months to 30 June 2022 in late October and expects to deliver EBITDA of at least £1.5 million. 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. This investment naturally impacted profitability in the short term but it has also positioned the business to be able to anticipate the needs of our customers in this post pandemic market, as shown by the recent contract wins.
In addition, the FY 2022 results will include a provision for £0.1m against a possible bad debt, which may prove to be overly prudent.
Sebastian Morley Chairman of CSSG 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. Overall, the business remains financially robust with a strong balance sheet and is well placed to continue to move forward in this post pandemic market."
For further information visit www.cssgroupplc.com or contact:
Croma Security Solutions Group Plc Tel: +44 (0)7768 006 909
Sebastian Morley (Chairman)
WH Ireland Limited Tel: +44 (0)207 220 1666
(Nominated Adviser and Broker)
Mike Coe
Sarah Mather
Novella Tel: +44 (0)203 151 7008
Tim Robertson
Safia Colebrook
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