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.
3 February
2025
Croma Security Solutions Group
Plc
("CSSG", "Croma", "the "Company" or the "Group")
Acquisition of Leeds
Locksmith
Croma Security Solutions Group plc
(AIM:CSSG) is pleased to announce that it has completed the
acquisition of Meridian Securities System Limited ("Meridian"), a
well-established, family run locksmith business based in Horsforth,
Leeds for a total cash consideration of £150,000, of which
c.£135,000 is payable immediately, with a deferred element of
c.£15,000 payable over the first 9 months. In a separate
transaction, the Company acquired a freehold retail property for a
total cash consideration of £275,000 from the vendor's pension
fund.
Founded and owned by John and Kim
Taylor in 2004, Meridian has been providing locksmith services and
electronic security systems to the local resident and business
community for over 20 years. Operating from a single store, as well
as providing a successful online service, Meridian has 6 employees
of whom 3, are part of the Taylor family, and all of whom will
remain with the business.
For the 12 months to 31 December
2023, Meridian generated revenues of £836,000 and profit before tax
of £46,000. The net asset value of the assets acquired from the
Meridian is £15,000.
Located in Horsforth, Leeds the store
extends the Croma network northwards and is in easy reach of the
Group's security centre in Bury just 40 miles away. Meridian enjoys
a high level of electronic security sales which is part of Bury's
core expertise and so the two sites should combine well and have
already begun to collaborate.
The acquisition of Meridian is part
of the Group's broader strategic plan to build a national network
of modern security centres. As with previous acquisitions, Meridian
will be incorporated into the business, benefiting from a broader
product range and centralised services. The store will continue to
service the local existing customer base, as well as the wider
Croma network of commercial clients.
John
Taylor, Managing Director of Meridian,
said: "We have been looking to
balance our desire to realise the value in our business whilst also
continuing to work. Croma is therefore an ideal partner for us,
they have a strong track record of incorporating similar businesses
to ours into the Group and they have the skills and expertise to
grow Meridian, especially in the commercial market where
historically we have struggled to meet demand. As the founder of
the business and having grown it from scratch, I'm excited to
continue my career as part of the Croma team."
Roberto Fiorentino, Chief Executive Officer,
commented: "We are delighted to
welcome Meridian into the Group. The business meets all our
criteria and is therefore a strong fit. We anticipate being able to
increase the profitability of the business ensuring it quickly
becomes earnings accretive and extends our geographic reach. As
importantly, we have a good pipeline of further transactions which
we are looking forward to bringing to completion."
For
further information visit www.cssgroupplc.com or
contact:
Croma Security Solutions Group Plc
Tel: +44 44 (0)1489 566 166
Roberto Fiorentino, CEO
Teo Andreeva, CFO
Zeus
Tel: +44 (0)207 220 1666
(Nominated Adviser and
Broker)
Mike Coe
James Bavister
Novella
Tel: +44 (0)203 151 7008
Tim Robertson
Claire de Groot
Safia Colebrook
Notes to editors:
Croma Security Solutions is an
expanding technology led security solutions provider with over 50
years of specialist experience, delivering high-quality security
solutions across locksmith, fire and security services for both
domestic and commercial environments. The Groups network currently
stands at 17 security centres, stretching from its headquarters in
Southampton, across the Midlands and up to the Northwest. Croma
services a range of sectors including health, education, leisure
and entertainment, and utilities, and is trusted by national
brands, including multiple NHS Trusts, with their complex security
needs.
Croma's growth strategy is focused
on establishing a national security network. In 2023, it sold its
man-guarding business Vigilant for £6.5m, which has provided the
capital to fund the expansion of the business. Croma is a proven
acquirer of local, traditional locksmith businesses, which are
developed into its network of modern security centres, offering
both total security solutions and locksmith services to retail and
commercial customers. The new security centres benefit from
extended product ranges, centralised group services, and both a
local and national customer base. Since the sale in 2023, Croma has
added new businesses to its network, and has a strong pipeline of
further locksmiths stores to be acquired into the
network.
Croma is listed on the AIM market of
the London Stock Exchange. Founded in 1970, it is headquartered in
Southampton and has over 90 employees.
