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(Sharecast News) - Croma Security Solutions said in an update on Wednesday that it expected to report a 10% rise in full-year revenue to 9.6m for the 12 months ended 30 June, with trading performance in line with market expectations.
The AIM-traded company said growth was driven by organic sales across both divisions and the continued expansion of its national security centre network.
It said it remained debt-free and held 4.3m in cash at year-end.
Following the 6.5m sale of its Vigilant manned guarding division in 2023, Croma said it had received 4.9m to date, with the remaining 1.7m due in quarterly instalments by June 2026.
Proceeds were being reinvested into expanding its locksmith-to-security centre model, with the aim of creating a leading national brand.
Croma completed two acquisitions during the year, adding locksmith stores in Leeds and Peterborough, both of which were performing to plan.
The company said its acquisition pipeline had grown "significantly" in recent months, as it aimed to acquire three to five new stores annually.
To support the expansion, the group was investing in senior leadership for operations and sales, which may limit profitability in the short term.
The company now operated a network of 17 security centres, comprising nine freehold and eight leasehold properties.
Management said owning property provides long-term control, future rental income potential, and flexibility for upgrades.
During the year, three freehold sites were acquired in Leeds, Worthing, and Shirley in Southampton.
Croma acknowledged ongoing challenges in the consumer and public sectors but said its growth strategy remained robust, supported by loyal customer bases and a strengthening geographic footprint.
At 1220 BST, shares in Croma Security Solutions Group were down 2.01% at 81.82p.
Reporting by Josh White for Sharecast.com.