Business
Proposed Disposal of Vigilant for £6.5 million
Proposed Disposal of Vigilant for £6.5 million.
About this update from Croma Security Solutions Group Plc
[{"type":"text","content":"\n\n\nCroma Security Solutions Group Plc\n(\"CSSG\", \"Croma\", \"the \"Company\" or the \"Group\")\nProposed Disposal of Vigilant for £6.5 million\n \nCroma Security Solutions Group plc (AIM:CSSG) is pleased to announce it has entered into a conditional agreement to sell the entire issued share capital of its subsidiary Vigilant Security (Scotland) Limited (\"Vigilant\") to M&W Security Limited for a total consideration of £6.5 million plus inter-company balances of £1.07 million repayable to the Company.\nHighlights\n· Sale of Vigilant follows the Company's strategy to focus on its higher margin Croma Locksmiths and Croma Security Systems businesses.\n· Proceeds from the sale will be used to support the successful nationwide roll-out of the Company's retail chain of modern security centres.\n· Vigilant is being acquired by two previous Directors of the Company, Sebastian Morley and Paul Williamson who stepped down from the Board in December 2022 to prepare a bid.\n· The Consideration to be received for the Disposal of £6.5 million represents approximately 91.8 per cent. of the Company's market capitalisation of £7.1 million as at the close of business on 2 June 2023. For the year ended 30 June 2022 Vigilant generated approximately 42 per cent. of the Croma Group's EBITDA and for the six months ended 31 December 2022 Vigilant generated approximately 29 per cent. of the Croma Group's EBITDA.\n· The Disposal is subject to shareholder approval and is expected to be completed on 30 June 2023.\n \nRoberto Fiorentino, CEO of CSSG, said: 'We are delighted to be announcing the proposed sale of Vigilant which is a good business but no longer fits with the future of our Group. The funds from the sale will accelerate our ability to drive our Locks and Systems business through the roll out of our modern Security Centres. Separately, the Group has continued to trade well and we have had a strong second half to the year which ends in June 2023 and we expect to report overall trading comfortably ahead of last year. We look forward to completing the sale and demonstrating to existing and new shareholders the true value of our core businesses.\"\n \nBackground\nOn 6 December 2022, the Company announced its decision to sell Vigi...