Acquisition

RNS Number : 4263R

Croma Security Solutions Group PLC

06 July 2022

 

6 July 2022

Croma Security Solutions Group Plc

("Croma", "the "Company" or the "Group")

Acquisition

Croma Security Solutions Group plc (AIM:CSSG), the security services provider is pleased to announce that it wholly owned subsidiary, Croma Locksmiths and Security Solutions Limited ("Croma Locksmiths"), has acquired Southern Stronghold Limited  ("Stronghold" or the "Acquisition") for a consideration of £964,569.10.

Acquisition consideration

Croma Locksmiths has acquired the entire issued share capital of Stronghold from its family owned parent company, Stronghold Trading Group Limited for a consideration of £964,569.10. The consideration comprises a cash payment of £700,000 payable on completion plus deferred consideration of £264,569.10 payable on or before 4 September 2022. The deferred consideration reflects the cash in Stronghold at completion of £124,569.10 plus additional consideration of £140,000.

Information on the Acquisition

Stronghold is a long-standing locksmith business that operates from two freehold premises, one in Coventry and a second near Southampton in Totton. Coventry is the larger of the operations and is a main Assa/Abloy service centre and provides a large number of  Master Key systems to local businesses. Stronghold also has an on-line business "Stronghold Direct".

For its year ended 31 March 2022 Stronghold recorded revenue of £0.5 million and a profit before tax of £39,000. Adjusting for non-recurring items the Directors believe the profits were £108,000. As of 30 June 2022, Stronghold had net assets of £0.926 million.

Benefits of the Acquisition

C roma's strategy has been and remains to create a nationwide network of Croma Security centres. The Acquisition will extend the geographic reach of the Group and through its Coventry site provide a base from which Croma can better service, support and expand existing client relationships with those that have operations in the Midlands. The Coventry Master key systems capability and its many clients provides access to long term client relationships and reoccurring revenue.

The Totton site provides a locksmithing service to the local community and is well known in the area. Established with local authorities and some clients further afield that place their trust in Southern Strongholds long standing reputation for products and services.

"Stronghold Direct" will help the Group and Croma Locksmiths to market and sell products under a different trading name on-line, an increasingly essential option for clients. 

Commenting on the Acquisition, Roberto Fiorentino, CEO of Croma, said: This is another important acquisition in our drive to improve coverage of the Croma Security Centres services. Coventry will certainly bridge a gap between the previous acquisition of Safeguard near Manchester and our other branches in the South. The business has been known to us for many years with a solid reputation that matches the Croma ethos. 

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 .

For further information visit www.cssgroupplc.com or contact:

Croma Security Solutions Group Plc    Tel: [phone]

Roberto Fiorentino (CEO)

WH Ireland Limited  Tel: [phone]

(Nominated Adviser and Broker)

Mike Coe

Jessica Cave

Sarah Mather

Novella  Tel: [phone]

Tim Robertson

Fergus Young

 

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