Croma Security revenue rises 15% as net cash reaches £4.9 million

Croma Security Solutions Group (AIM: CSSG) expects to report revenue and profit slightly ahead of market expectations for the financial year ended 30 June 2026.

The security systems and locksmith group has delivered double-digit revenue growth, successfully integrated two recent acquisitions and finished the year with no bank debt. However, EBITDA is expected to be lower than last year as planned investment in the business absorbs some of the benefits from rising sales.

The figures remain subject to audit.

Croma Security's FY 2026 figures at a glance

Metric	FY 2026 expected	Comparative figure	Change or context
Revenue	Approximately £11.0 million	£9.6 million	Approximately 15% growth
EBITDA	Around £1.0 million	£1.1 million	Lower year on year, but marginally ahead of expectations
Net cash excluding lease liabilities	£4.9 million	£4.4 million at 31 December 2025	Ahead of market forecasts
Bank debt	None	Not disclosed	Debt-free at the year end
Security centres	17	Not disclosed	Includes the expanded acquisition-led network

EBITDA means earnings before interest, tax, depreciation and amortisation. It is commonly used as a measure of underlying operating performance, although it does not account for all costs faced by shareholders.

Revenue growth is the main headline

Expected revenue of approximately £11.0 million represents growth of around 15% from the £9.6 million reported for FY 2025. It is also slightly ahead of market expectations.

Management attributed the performance partly to contributions from the two businesses acquired during the second half. Continued revenue growth was supported by healthy demand from retail and commercial customers, with both existing and new clients investing in their security infrastructure.

Croma pointed to increasing regulatory requirements and the continuing need to protect people, property and assets as drivers of customer spending. The group also reported progress in its core markets, particularly healthcare and leisure.

One limitation for investors is that Croma did not disclose how much of the 15% revenue increase came from acquisitions and how much was generated organically. That split will be important when the audited results arrive because it will help show the underlying growth rate of the existing business.

EBITDA reflects investment in expansion

Croma expects EBITDA of around £1.0 million, marginally ahead of market expectations but below the £1.1 million achieved in FY 2025.

That creates a mixed picture. The company has beaten expectations, but earnings have not risen alongside revenue. Based on the approximate figures provided, EBITDA represents roughly 9.1% of expected FY 2026 revenue, compared with around 11.5% in the prior year.

Management said the result reflects planned increased investment in the business, which had previously been referenced in its interim results announcement. Investment can support future growth, particularly when a company is acquiring and integrating smaller operators, but investors will want evidence that this spending eventually translates into stronger earnings and margins.

The key question is whether FY 2026 marks a temporary period of investment or whether lower margins become a more persistent feature of the expanded group.

Acquisitions are building the national network

Croma completed two acquisitions during the second half of the financial year.

TLS Security Systems, an established locksmith and security business in Taunton, Somerset, was acquired in January 2026. Southern Security Services Limited, an electronic security and specialist locksmith business in Poole, Dorset, followed in March.

Both businesses have been integrated and are trading in line with management's expectations. That is encouraging because acquisition-led strategies depend on management buying suitable businesses without disrupting customer relationships or allowing integration costs to run out of control.

Since selling Vigilant Security Limited, Croma has acquired six locksmith businesses and integrated them into a network of 17 modern security centres. It has also merged two sites, generating what the company described as synergistic benefits. The financial value of those benefits was not disclosed.

Croma says it has a healthy pipeline of potential acquisitions and is actively progressing several discussions. The aim is to buy established locksmith and security businesses at attractive valuations in locations that complement the existing network.

Vigilant disposal is now fully completed

In June 2026, Croma received the final £0.4 million deferred consideration payment from the disposal of Vigilant Security Limited. This completed the £6.5 million transaction originally announced in June 2023.

The disposal allowed Croma to concentrate on its higher-margin Croma Locksmiths and Croma Security Systems operations while funding the expansion of its security centre network.

Receiving the final payment removes the remaining collection risk attached to the deferred consideration and draws a line under the transaction. It also contributes to a balance sheet that management describes as financially stronger than at any point in the group's history.

A robust balance sheet supports further deals

Net cash, excluding lease liabilities, stood at £4.9 million on 30 June 2026, up from £4.4 million at the end of December 2025 and ahead of market forecasts. Croma also reported no bank debt.

This financial position matters because it gives management room to continue acquiring businesses and investing in organic growth without an immediate reliance on bank borrowing.

Still, investors should watch how quickly cash is deployed. Acquisition capacity is a positive only if management maintains valuation discipline and the acquired businesses generate suitable returns. The announcement did not disclose potential deal sizes, acquisition multiples or financial targets for the current pipeline.

What matters for Croma Security shareholders?

The strongest parts of this update are the 15% expected revenue growth, performance slightly ahead of market expectations and the £4.9 million net cash position. Successful integration of the two latest acquisitions also supports confidence in Croma's expansion model.

The main concern is profitability. EBITDA is expected to fall from £1.1 million to around £1.0 million despite the increase in revenue. Management has explained this as planned investment, but the eventual return from that spending remains to be demonstrated.

Investors should look to the audited results for more detail on organic growth, margins, acquisition contributions and cash generation. For now, Croma enters its next financial year with a larger network, no bank debt and an active acquisition pipeline, but improving the conversion of revenue growth into earnings will be the next important test.