Croma Security (LSE:CSSG) Solutions Group is expanding through acquisitions. In final results published on 2 November 2026, the Southampton-based company reported Revenue up 13.8% to £10.97 million, with organic growth of 4.6%, and said it had completed two acquisitions during the year and two more after the year end.

What Croma does

Croma operates a network of security centres that Supply locksmith services, access control, alarms and related systems to commercial and public sector customers. According to its own description, it was founded in 1970, is headquartered in Southampton and serves sectors including health, education, leisure and utilities, with several NHS Trusts among its clients. It is listed on AIM and is part of the FTSE AIM All Share Index.

Full-year results

Profitability moved the other way from sales. EBITDA fell 11.1% to £1.04 million from £1.17 million, and the EBITDA Margin dropped to 9.5% from 12.1%. Gross margin was 41.6% against 43.4%. Operating profit was £0.45 million and profit after tax £0.55 million, giving Diluted Earnings per Share of 3.98p.

The Balance Sheet remains debt-free apart from Lease liabilities, with cash of £4.91 million and net Assets of £15.95 million. The board proposed a final Dividend of 2.5p, an increase of 4.2%.

Acquisitions

The two deals completed in the year took the number of security centres to 17. After the year end, the company made two further acquisitions, for about £1.72 million and £1.10 million. On 1 September 2026 it announced the purchase of A. Butler and Sons, trading as William Channon, a commercial locksmith in Holborn, London, founded in 1917. The estimated consideration was £1.0 million in cash, with £600,000 paid on completion. The target had turnover of £1.1 million and a small loss before tax of £0.06 million in 2025.

Croma (LSE:CSSG) said the deal gives it its first strategic London presence and that it sees scope to improve profitability through restructuring and by cutting duplicated overheads. A further Acquisition was announced on 3 August 2026.

Funding and strategy

The growth programme is funded from the proceeds of the 2023 sale of the Vigilant man guarding Business for £6.5 million. The final payment from that disposal was received on 1 July 2026. A trading statement came on 20 July, and a share incentive plan notice on 17 July. The company says it has a pipeline of further deals and describes the outlook for the current year as positive, helped by Demand linked to Martyn's Law, the legislation on protecting public venues.

Sector and index context

Locksmith and security services are fragmented, which gives scope for consolidation by small groups, but integration can be demanding. On the FTSE AIM All Share Index, Croma (LSE:CSSG) is among the smaller companies, and its acquisitions are significant relative to its size.

Key risks

Acquired businesses may operate with lower margins than Croma's existing branches, and the fall in LSE:CSSG margin shows this effect in the latest year. William Channon made a small loss before tax. Integration costs, the loss of key managers and clients, and competition could dilute returns, and regulatory timing around Martyn's Law is not within the company's control.

What to watch next

Investors will look for the annual general meeting, dividend payment dates and the first contribution from the post-year-end acquisitions, along with evidence that margins recover. Further deals funded from cash will also be announced, and a rise in organic growth beyond 4.6% would show whether demand drivers are materialising.