The Commonwealth Games and households doing more to protect themselves and their property sparked a five-fold increase in profits at security specialist Croma (LON:CSSG).
Operating profit in the year to June rose to £340,000, up from last year’s £90,000, while group turnover increased “ahead of expectations” to £14.8mln from £13.3mln.
The Southampton-based firm has four key divisions, including manned guarding group Vigilant, the largest revenue contributor to the group, Security Systems, which designs CCTV and alarm systems, Locksmiths and two start-up biometric operations.
Vigilant’s sales grew by just over 10% while operating profit rose to £416,000 (£330,000) aided by its work as part of the security team for the Commonwealth Games in Glasgow.
The Games work was a one-off but has raised the profile of the business, Croma said.
Security Solution sales rose by 19% to £2.57mln, with underlying profits of £410,000. Croma is concentrating on delivering high value systems to private and corporate clients, with the emphasis being on access control and intruder alarm systems.
Chairman Sebastian Morley added: “All group entities are looking to pursue an active strategy for organic growth in the coming year, with increased sales effort and active cost control.”
“The board is clear that the core revenue streams of the group, that of manned guarding and security systems and locks, will continue to drive results to the forecast numbers and beyond.
“The main effort will remain there, and new products will form the basis of incremental revenues and earnings.”
WH Ireland Securities reiterated its buy on the firm with a target raised from 50p to 55p.
Shares were trading at 41p on Thursday, down 6%.