Business
Acquisition of Safecell Security Group
Acquisition of Safecell Security Group.
About this update from Croma Security Solutions Group Plc
[{"type":"text","content":"\n \n \n 20 December 2022\n \n \n \n Croma Security Solutions Group Plc\n \n \n \n (\"Croma\", \"the \"Company\" or the \"Group\")\n \n \n \n Acquisition of Safecell Security Group\n \n \n \n Croma Security Solutions Group plc (AIM:CSSG),\n the security services provider is pleased to announce that its wholly owned subsidiary, CSS Total Security Limited (\"Croma Systems\"), has acquired Manchester based Safecell Security Group Limited (\"Safecell\" or the \"Acquisition\") and its two 100% owned subsidiaries for an initial consideration of £0.45m and deferred cash consideration of c.£0.3m.\n \n \n \n Highlights\n \n \n \n ·\n \n Acquisition of Safecell expected to be immediately earnings enhancing\n \n \n \n ·\n \n Adds a further a security centre, expanding national footprint, to 14 centres across the UK\n \n \n \n ·\n \n Significantly strengthens North West presence and extends ability to service nationwide security clients\n \n \n \n ·\n \n Third acquisition completed in 2022\n \n \n \n \n Acquisition consideration\n \n \n \n The consideration comprises a cash payment of £0.45m payable on completion plus a deferred consideration payable on or before 16 March 2023, to the vendors Mr and Mrs Dunne. The deferred cash consideration is the amount equal to the cash plus an amount equal to the debtors less an amount equal to the indebtedness as of the date of completion, which is expected to be in the region of £0.3m\n \n \n \n Information on Safecell\n \n \n \n Safecell is a well-known and long-standing security business based in Manchester, providing a comprehensive range of services with a particular focus on electronic and physical security together with fire systems, to retail and commercial customers across the North of England. Safecell's locksmith business operates from premises in Bury (North Manchester).\n \n \n For the period January to November 2022, Safecell recorded revenue of £0.85m with full year projection of £0.93m (including re-occurring revenue of £0.4 million) and a profit before tax of £0.19m.\n \n \n As of November 2022, Safecell had net assets of £0.39m.\n \n \n \n Benefits of the Acquisition\n \n \n \n C\n 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 Bury site...