Business
Trading Update
Trading Update.
About this update from Croma Security Solutions Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 1657P\n Croma Security Solutions Group PLC\n 08 June 2020\n \n \n \n \n 8 June 2020\n \n CROMA SECURITY SOLUTIONS GROUP PLC\n \n (\"CSSG\" or the \"Company\")\n \n Trading Update\n \n \n Croma Security Solutions Group Plc, the total security services provider, today gives an update on trading in the current financial year, its operational responses to Covid-19 and the underlying strength of its financial position.\n Update on current trading\n The Board is pleased to confirm that the impact of Covid-19 has been light primarily only affecting the retail elements of the business and as a result expects the Company to generate EBITDA, for the 12 months ending 30 June 2020, of at least £1.6 million. This represents the Company's base case outcome for the year and there is a reasonable expectation that the actual outcome will be higher.\n While the retail element under Croma Systems was naturally impacted due to the enforced closure of the security stores, this was offset by the increased need for manned guarding services to protect empty properties, offices and buildings. The Company has also continued to pursue and win new accounts with good demand for our new front of house concept PROception.\n At the outset of the Covid-19 pandemic the Company took the prudent decision to cancel the interim dividend of 0.75p per share which was announced alongside the Interim Results on 2 March 2020. This decision was taken on the basis the impact of Covid-19 was unknown and it was therefore sensible to preserve cash within the business. The Board now expects to review this decision once the actual outcome for the year can be confirmed.\n Operational Response\n One of the advantages of managing a business with a strong military ethos is that there is within the management team a familiarity with adapting to a crisis situation. The Company had in the ordinary course of managing the business run a series of business continuity scenarios in December 2019 which were directly applicable to providing the operational response in the last 3 months. As a result, despite having over 100 security staff in self isolation at one time, the Company was still able to deliver its premium guarding services to all existing clients and critically meet the increased demand created by Covid-19.\n This was achieved whilst implem...