Final Results

Croma (AIM:CSSG), the AIM listed innovation and service-focused security solutions provider, is pleased to announce its final results for the year to 30 June 2026 ("FY26").

Group Highlights

Group revenue for the year of £10.97 million, up 13.8% (FY25: £9.63 million).

EBITDA on operations of £1.04 million (FY25: £1.17 million).

EBITDA margin on operations of 9.5% (FY25: 12.1%).

Acquired two businesses during the year, TLS Security Systems in Taunton and Southern Security Services in Dorset, taking the total number of Security Centres to 17 at 30 June 2026.

Strong balance sheet, with no bank borrowings and cash of £4.91 million at 30 June 2026 (FY25: £4.33 million).

Proposed final dividend of 2.5p per share (FY25: 2.4p).

Received final payment in June from the £6.5 million disposal of Vigilant Security in June 2023, which has been re-invested in the strategic acquisition of independent locksmiths.

Outlook

Since the year end, two further businesses in Portsmouth and Holborn have been acquired for approximately £1.72 million and £1.1 million respectively.

Trading in FY27 is on track, with the newly acquired businesses performing well and a strong pipeline of further acquisition opportunities.

Martyn’s Law is creating a new commercial opportunity for the Group, with increasing customer enquiry levels and a growing pipeline of project opportunities to support their security requirements.

Croma CEO, Roberto Fiorentino commented:

“I am pleased to report another year of growth for Croma, with the Group continuing to expand its operations, broaden its capabilities and strengthen its position in the security services market.

As security requirements evolve and regulatory change creates new commercial opportunities, Croma is well positioned to meet the changing needs of customers across a broad range of security services. Our combination of deep operational expertise and an expanding portfolio of established businesses provides a strong platform for further growth.

With a strong balance sheet, the anticipated revenue contribution from our recent acquisitions and a healthy pipeline of further acquisition opportunities, Croma is well placed to grow its recurring revenue base and deliver sustainable long-term growth.”

CEO Roberto Fiorentino in a short Q&A sets out the investment case and outlook

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I am pleased to present my first report to members since my appointment as Chair on 1 November 2025.

The year to 30 June 2026 saw the continued roll-out of the Group’s strategy to acquire quality businesses for consolidation into the Group; and further progress towards achieving a recognised brand with a national focus on providing complete and integrated solutions to customers’ increasingly complex Fire and Security requirements.

Each of our core divisions achieved revenue growth; organic growth from existing businesses was 4.6% and this was supplemented by the two acquisitions made in the second half of the year, taking the number of branches to 17 at the year end. These two acquisitions absorbed £1.0 million cash, and each has contributed to the year’s profits and the Group’s net cash generation for the year.

Our acquisition strategy continues and we have made two further acquisitions since the year end, further adding to Group revenues and introducing new skills and product lines to extend the Group’s offering, which for the first time now includes a well-established operation in London where we previously have not had a presence.

Planned investment in people and technology, needed to extract full value from the acquired businesses as they are fully and successfully integrated into the Croma model, held back profit for the year somewhat, as anticipated.

We also completed the £6.5 million divestment of Vigilant with the receipt of the final £1.6 million of deferred consideration and had a strong balance sheet which is debt-free excluding lease liabilities, and with cash and cash equivalents of £4.9 million.

We are recommending a progressive dividend for the year of 2.5p, an increase of 4.2%. This level of dividend is covered 1.6 times by earnings and is an indication of the confidence with which we view the future with more opportunities to build the Group further by selective acquisition and by taking full advantage of our wide knowledge and expertise to enable our commercial customers to comply with new legislation including Martyn’s Law.

These results and the successful implementation of our strategy would not happen without the energy and commitment of our dedicated staff; I would like to take this opportunity to thank them for their hard work.

John Wakefield – Chairman

CEO’s Statement

Building the Croma of tomorrow

This has been an important year in Croma's development. We have grown the business, invested in the organisation and continued to build the scale, expertise and breadth of service that we believe are necessary to create a significantly larger and stronger security group.

Our ambition is straightforward: to build a leading British security business with the expertise and breadth of capability to serve customers increasingly across the UK. Over time, we aspire to develop a nationwide presence, but our priority is to grow in a disciplined way, expanding our geographic reach where we identify the right businesses and opportunities rather than pursuing coverage for its own sake.

During the year, revenue increased by 14% to £10.97 million, including organic growth of 4.6% within the existing businesses. We also invested in management, operational infrastructure and support functions to prepare Croma for the next stage of its development.

Three years after the disposal of Vigilant, we are seeing the shape of the business we set out to create. The disposal released the capital to refocus Croma on its locksmith and security operations and invest in their development. The final deferred consideration was received during the year, bringing that chapter in Croma's history to a close.

The next stage is about making more of the platform we have built.

From acquisition to value creation

Acquisitions remain an important element of our strategy, but acquiring a business is only the beginning.

The independent locksmith and security market continues to provide opportunities to acquire established businesses with experienced people, strong customer relationships and specialist expertise. Importantly, potential opportunities are increasingly being brought directly to Croma, allowing us to be selective about the businesses we pursue.

We are interested in businesses where joining Croma can create greater value than remaining standalone. That may come from extending our geographic reach, gaining specialist capabilities, adding attractive customer relationships or identifying opportunities to improve efficiency.

Once a business joins Croma, there is an opportunity to remove duplication and make greater use of central resources across procurement, finance, management, HR, marketing and digital support. There is also a potentially more powerful opportunity on the revenue side: introducing customers acquired with one business to relevant products and expertise available elsewhere within the Group.

At the same time, we learn from the businesses we acquire.

For example, our recent acquisition of AST has added specialist capability in intercom and door-entry systems and products designed for people with hearing impairments.

We do not want to acquire businesses simply to aggregate revenue. We want the Group to become more capable with each acquisition and for the combined business ultimately to be worth more than the individual businesses operating separately.

One Croma

As the Group grows, integration becomes increasingly important.

Croma today brings together mechanical and electronic security expertise and serves customers in sectors including healthcare, education, leisure and entertainment, and utilities. We also support major contractors operating across Government and defence, undertaking specialist works at secure and operationally sensitive locations.

The Group also benefits from recurring and repeat business through maintenance contracts, monitoring services, established commercial customer relationships and repeat retail and trade activity.

Our opportunity is to connect those capabilities more effectively.

Our vision is for customers increasingly to see one Croma: a trusted security partner able to understand their requirements and draw upon expertise from across the Group to provide the appropriate solution.

A customer relationship that begins with a locksmith should, where relevant, provide an opportunity to introduce electronic security or other specialist services. Equally, specialist expertise acquired with one business should become accessible to customers and colleagues elsewhere within the Group.

Our physical locations remain an important part of that proposition. They provide established local relationships, knowledge and presence. As we grow, our aspiration is progressively to extend that reach into other attractive markets and, over time, move closer towards a genuinely nationwide presence.

We are clear, however, that this is a long-term ambition rather than a description of Croma today. We will not pursue geographic expansion simply to put more locations on the map. Each investment must make strategic and financial sense and contribute to the quality and long-term value of the Group.

Growth beyond acquisition

Acquisitions alone will not determine Croma's success.

Organic growth within the existing businesses remains fundamental to our strategy. FY26's 4.6% organic revenue growth demonstrates the contribution the existing operations can make alongside acquisitions.

The enlarged Group provides more opportunities to deepen relationships with existing customers, introduce additional services and pursue larger opportunities using expertise drawn from across Croma.

The security market itself continues to evolve. Customers have continued to invest in maintaining and improving their security infrastructure, with regulatory requirements and the protection of people, property and assets supporting demand.

Martyn's Law is an example of this changing environment and an area where Croma's broader capabilities can become increasingly relevant. We are already seeing increased enquiries associated with the legislation and are developing a pipeline of opportunities.

For us, the significance goes beyond any single piece of legislation. It demonstrates why continuing to broaden Croma's expertise matters. Customers' security requirements increasingly cross traditional boundaries between mechanical products, electronic systems, access control and specialist advice.

We believe Croma is increasingly well placed to respond to those requirements.

Building a more profitable business

Greater scale by itself is not our objective.

During FY26, profitability reflected the investment we have made in senior management, operational infrastructure and support functions to facilitate integration and support future growth. Group EBITDA was £1.04 million compared with £1.17 million in the previous year.

Our objective now is to convert the greater scale we have created into stronger sustainable earnings.

Integration is central to achieving that. As businesses become part of Croma, we see opportunities to simplify operations, consolidate appropriate functions, use Group resources more efficiently and support a larger organisation without replicating the complete cost base of every business acquired.

That process will take time. We do not expect every benefit to arise immediately following an acquisition, and we believe it is important to retain the people, customer relationships and specialist expertise that made those businesses attractive to us in the first place.

Our approach therefore has to balance integration with continuity. The objective is not simply to cut costs, but to create a stronger operating model capable of supporting profitable growth.

Our people

None of this can be achieved without our people.

One of the principal attractions of the businesses we acquire is the experience and technical knowledge within them. They bring people who understand their customers, their markets and their specialist areas of security.

Our responsibility is to preserve that knowledge while giving those teams the support and opportunities that come from being part of a larger Group.

This has been a year of considerable change. Integrating acquisitions while continuing to support our customers places additional demands on colleagues across the business. On behalf of the Board, I would like to thank everyone across Croma for their hard work, expertise and commitment throughout the year.

Dividend

The Board is proposing a dividend of 2.5p per share, representing an increase of 4.2% on the prior year. Subject to the approval of shareholders at the Annual General Meeting to be held on 2 December 2026, the final dividend will be paid on 16 December 2026 to all shareholders on the register at the close of business on 4 December 2026. The shares will be marked ex-dividend on 3 December 2026.

In determining the dividend, the Board has considered the Group's earnings, dividend cover, cash resources and anticipated investment requirements. The Board believes that the proposed dividend appropriately balances returns to shareholders with retaining the financial resources necessary to support the Group's continued development.

Looking ahead

We enter the next stage of Croma's development with greater scale, broader capabilities and an enlarged customer base.

Our priorities are clear.

First, organic growth. We want to generate more from the platform we already have, deepen customer relationships and increase the range of services we provide.

Second, integration. We want to convert greater scale into operating efficiencies and stronger sustainable profitability.

Third, selective acquisition. We will continue to consider established locksmith and specialist security businesses where they add attractive customers, expertise, complementary services, geographic reach or clear opportunities for value creation.

Fourth, capability. We will continue developing Croma's ability to respond to changes in technology, regulation and customer requirements.

And underlying all four is financial discipline. Growth must ultimately translate into sustainable value for our shareholders.

Our long-term opportunity is therefore much greater than simply increasing the number of Security Centres or completing further acquisitions.

We are building an integrated British security business with growing scale, broader expertise and strong customer relationships. Our aspiration over time is to develop that business into one with genuine nationwide reach, but we intend to get there patiently and selectively, with profitable growth and shareholder returns taking priority over geographic expansion for its own sake.

That is the Croma we are building: a stronger, more profitable and resilient Group, with the scale and ambition to deliver sustainable long-term growth.

Roberto Fiorentino – CEO

Financial and Operational Review

The Directors present the Group Strategic Report for Croma Security Solutions Group Plc for the year ended 30 June 2026.

Group sales were up 14% to £10.97 million (FY25: £9.63 million), reflecting acquisitions made during the year as well as organic growth within the core businesses of 4.6%.

Gross margin for the year was 41.6% (FY25: 43.4%). The reduction reflects a prudent stock provision following increased stock holdings from the acquisition of SSS, pending improved stock ageing data from the Group’s new software, together with changes in revenue mix across the Group.

Group EBITDA was £1.04 million (FY25: £1.17 million), a decrease of 11.1%, reflecting continued investment in senior management, operational infrastructure and support functions to facilitate the integration of acquired businesses and support the Group’s growth strategy.

Group net profit from operations for the year was £0.55 million (FY25: £0.79 million), and EPS was 3.99p (FY25: 5.72p).

The Group continued to generate positive cash flows, resulting in a debt-free balance sheet (excluding lease liabilities) and cash and cash equivalents of £4.91 million (FY25: £4.33 million). The Group's strong cash position and debt-free balance sheet (excluding lease liabilities) provide the flexibility to continue its acquisition strategy, focused on expanding its network of locksmith branches and security centres in locations where the Board believes there is scope to broaden service offerings, enhance operational efficiency and deliver sustainable synergies.

Croma Locksmiths

Croma Locksmiths delivers comprehensive security solutions to both commercial and residential customers. As of the financial year end, the business operated 17 centres, following the addition of 2 new sites during the year. Each of the Group’s security centres was originally an independent locksmith business, and each has been brought together into Croma’s national network capable of serving both local customers and national accounts. Larger commercial clients span travel, leisure, utilities, housing, healthcare and defence sectors.

The locksmith division performed particularly well in FY26, with significant sales and EBITDA progression. Trading included contributions from TLS Security Systems Limited, acquired in January 2026. The division recorded a good trading period with sales up 21.3% to £6.75 million (FY25: £5.57 million), and EBITDA of £1.23 million (FY25: £1.12 million), an increase of 10.2%.

Croma Fire and Security

Croma Fire and Security provides a full range of electronic security solutions and services to commercial and individual customers and has strong commercial relationships across the public health and hospitality sectors. Operating out of Southampton, Manchester, Peterborough and Leeds, an experienced team of specialist engineers supports a range of commercial and domestic customers.

Croma Fire and Security recorded sales for the year of £4.21 million (FY25: £4.07 million) up 3.4%. EBITDA for the period was down 27.2% to £0.59 million (FY25: £0.81 million). Trading included contributions from Southern Security Services Limited, acquired in March 2026.

The Fire & Security division delivered another strong performance this year, benefitting from the support and lead generation from our Locksmiths network. Despite a reduction in EBITDA, reflecting additional stock provisioning and the cost of integrating recently acquired operations, revenue growth of 3.4% is solid and the division's longer-term prospects are encouraging, supported by further cross-selling from an expanding Locksmiths network. Additionally, new security regulations, including Martyn’s Law, mean the division is well placed for future change as customers will seek consultancy advice and the products needed to comply.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2026

CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2026

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026

Basis of preparation

The Group financial statements have been prepared under the historical cost convention and approved by the Directors in accordance with UK-adopted International Accounting Standards.

While the financial information included in this preliminary announcement has been prepared in accordance with UK-adopted International Accounting Standards, this announcement does not itself contain sufficient information to comply with UK-adopted International Accounting Standards.

This announcement does not constitute statutory accounts of the Group for the years ended 30 June 2025 or 30 June 2026.

The financial information has been extracted from the statutory accounts of the Company for the year ended 30 June 2026. The auditors reported on those accounts; their report was unqualified and did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006.

The accounts for the year ended 30 June 2025 have been delivered to the Registrar of Companies, whereas those for the year ended 30 June 2026 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

The Annual Report will be posted shortly to all shareholders who have requested a copy and will be available on request from Unit 7 & 8 Fulcrum 4, Solent Way, Whiteley, Hampshire PO15 7FT and on the Company website at http://www.cssgplc.com/investors/. The Annual Report contains full details of the principal accounting policies adopted in the preparation of these financial statements.

Accounting policies

The accounting policies applied by the Group in this report are the same as those applied by the Group in the consolidated financial statements for the year ended 30 June 2026 and the year ended 30 June 2025. The directors expect similar accounting policies for the year ended 30 June 2027.

The difference between the segments revenue and consolidated income revenue is due to internal sales between the segments of £104k

2025 Business Segments

The difference between the segments revenue and consolidated income revenue is due to internal sales between the segments of £69k

Earnings per share

The calculation of basic earnings per share ("EPS") is based on the profit attributable to ordinary shareholders, from continuing operations, divided by the weighted average number of shares in issue during the year, calculated on a daily basis. The calculation of diluted EPS is based on the basic EPS adjusted to allow for the issue of shares and the post-tax effect of dividends and interest on the assumed conversion of all other dilutive options and other potential ordinary shares.

Business combinations (acquisitions)

As part of the Group’s continuing strategy to expand the network of security centres, on 2 January 2026, Croma Locksmiths and Security Solutions Limited acquired 100% of the share capital of TLS Security Systems Limited (“TLS”), a well-established, family run locksmith business based in Taunton, Somerset.

Transaction costs of £13k relating to the acquisition of TLS have been recognised as an expense and included within administrative expenses in the Consolidated Statement of Comprehensive Income.

TLS contributed £516k to the Group’s revenue and made a profit before tax of £168k for the period from the date of acquisition to the year-end date. If the acquisition of TLS had been completed on the first day of the financial year, it would have contributed £1,019k to the Group’s revenue and £276k to Group profit before tax.

The book values of the assets and liabilities acquired at the acquisition date were considered to be a good approximation of their fair values. In addition, the freehold property was acquired from the vendor’s SIPP for £0.2 million.

In addition to the above acquisition, on 13 March 2026, the Group acquired 100% of the share capital of Southern Security Services Limited (“SSS”), a well-established, Dorset based locksmith and security provider.

Transaction costs of £14k relating to the business purchase of Southern Security Services Limited ("SSS") have been recognised as an expense and included within administrative expenses in the Consolidated Statement of Comprehensive Income.

This acquisition contributed £372k to the Group’s revenue and made a profit before tax of £41k for the period from the date of acquisition to the year-end date. If the acquisition of SSS had been completed on the first day of the financial year, it would have contributed £1,186k to the Group’s revenue and £140k to Group profit before tax.

The book values of the assets and liabilities acquired at the acquisition date were considered to be a good approximation of their fair values.