Croma security solutions shares up after promising half-year results

Shares in Croma security solutions (LON:CSSG) ticked up on Wednesday, after a promising set of half-year results.

The security services provider posted a record financial performance for the six months to December-end, with a 55 percent increase in revenues from a year previously.

Moreover, the company revealed that a ‘significant rise’ in EBITDA to £1.2 million, up from £0.44 million in 2016. Pre-tax profits hit £1 million, compared to £0.22 million in 2016.

Earnings per share more than quadrupled to 4.92p, alongside a 20 percent increase in H1 dividend to 0.6p.

The company attributed the strong performance to high demand for security services in both the public and private sector.

The firm’s Croma Vigilant and Croma Systems also proved successful in securing new and maintaining existing contracts, including ‘the largest manned guarding contract’ in the company’s history, valued at £27 million over a six-year period.

Sebastian Morley, Chairman of CSSG, said:

“Profits for H1 are well in excess of the whole of last year so we are on track for this to be a record year for the business. While there have been some premium one-off contracts within the H1 trading performance, this has been combined with long-term contract wins which will commence in the second half.

Moreover, we believe security will continue to be an increasing priority for government and the commercial world and that Croma’s combination of technically innovative security solutions delivered with an ex-military ethos differentiates us and makes us well placed to continue to gain market share.”

Looking ahead, the company said it was ‘ideally placed’ to deliver a record full-year performance and continue to maintain its dividend.

The security services provider was founded back in 1970, and is listed on the London stock exchange.

Its main offices are based in Hampshire, but it also operates in London, Dumfries and Abu Dhabi.

Shares in Croma security solutions are currently trading up 16.57 percent as of 12.37PM (GMT).