Croma revenue rises 13.8% to £10.97 million as operating profit falls
Key Facts
Croma Security Solutions Group reported final results for the financial year ended June 30, 2026, with revenue of £10.97 million, up 13.8% from £9.63 million in the previous year, according to the results announcement published via RNS on the London Stock Exchange. But sales growth was not accompanied by an increase in operating profit: operating EBITDA was £1.04 million, compared with £1.17 million in the previous financial year. The operating EBITDA margin fell to 9.5% from 12.1%. The results put profitability alongside revenue growth at the heart of an assessment of the performance of the company, which operates in security solutions and related services. The company said the decline in EBITDA reflected continued investment in senior management, operational infrastructure and support functions needed to integrate acquired businesses and support its growth strategy.
Organic growth in the existing business was 4.6%, while two acquisitions completed in the second half of the year helped boost revenue, according to the company. The reported revenue growth therefore comprised a combination of expansion in the existing business and contributions from companies added to the group. In a trading update dated July 20, the company had said revenue for the year would be about £11.0 million, up approximately 15% on the previous year and slightly ahead of market expectations; those figures were preliminary and subject to audit. The final results announcement put revenue at £10.97 million, representing growth of 13.8%. In the July update, the company attributed its performance to the two acquisitions and healthy demand from individual and commercial customers, as customers continued to invest in maintaining and improving security infrastructure.
At the margin level, gross profit margin fell to 41.6% from 43.4% in the previous year. The company said the decline reflected a prudent inventory provision and a change in revenue mix. In the fire and security division, sales were £4.21 million, up 3.4% from £4.07 million. But the division's EBITDA fell 27.2% to £0.59 million. The company attributed pressure on the division's profitability to an additional inventory provision and costs of integrating acquired operations, consistent with the group's broader investment in integrating new businesses.
During the year, the group acquired TLS Security Systems in Taunton and Southern Security Services in Dorset, taking the number of its security centres to 17 as of June 30, 2026. In its July update, it said it had integrated two sites since the sale of Vigilant and acquired 6 locksmith businesses for its growing network. It also said it received in June 2026 the final deferred payment of £0.4 million from the sale of Vigilant Security Limited, announced on June 6, 2023, for £6.5 million. Cash and cash equivalents were £4.91 million at year-end, compared with £4.33 million at the end of the previous year. The company said it had no bank borrowings.
After the year-end, the group acquired two additional businesses in Portsmouth and Holborn for about £1.72 million and £1.1 million, respectively, according to the results announcement. It said trading in financial year 2027 was in line with plan, with the new businesses performing well and a strong pipeline of acquisition opportunities. It also said the Martyn's Law opened up a new commercial opportunity, with customer enquiries increasing and the pipeline of project opportunities linked to security requirements expanding. Commenting on the group's direction, the chief executive identified growing the business organically, improving integration and efficiency, and continuing selective acquisitions, with financial discipline as the foundation of its work. These priorities come as the group seeks to continue growing after its acquisitions, while the year's results show declines in EBITDA and margins despite higher revenue.