Croma Security - snaps up AST at 3.1x EBITDA in third deal of 2026
Shares in Croma Security Solutions Group (AIM:CSSG) have gained nearly 4% on news of the acquisition of Added Security Technology Limited (AST), an established provider of intercom and door entry systems, locksmith services and hearing impaired living aids, based in Portsmouth. This is the third acquisition announced by Croma this calendar year and in line with the firm’s strategy of acquiring family-owned locksmith businesses and integrating them into its network of security centres.
Founded over 30 years ago, AST is a specialist supplier and installer of communal door entry and intercom systems, locksmith services, key fobs and secure entrances, together with a growing specialism in hearing impaired living aids such as hearing loops and flashing doorbells. The business holds a long standing contract with a local council, recently renewed for a further 10 years, covering the installation of door entry systems and entrance doors across the council's social housing programme. This is alongside further contracts with regional housing associations and commercial clients.
Croma’s CEO, Roberto Fiorentino, has described the deal as “…the largest acquisition in Croma's history since the disposal of Vigilant.” Vigilant was the firm’s man guarding business, sold for £6.5 million in 2023, with the proceeds having been used to fund the expansion of the business.
Price & value
Croma will pay a total of £1.74 million for AST, with the price including cash balances of £0.80 million and a freehold property, from which the business trades, valued at £0.53 million. For the year ended 31st August 2025, AST generated revenue of £1.8 million and adjusted EBITDA of £0.3 million. So adjusting for the cash in the business (assuming there is no debt) Croma has paid an effective 0.5 times revenues and 3.1 times EBITDA for AST, figures which look even better value if adjusted for the value of the freehold property.
The deal will mainly be paid for in cash, together with £36,000 of Croma shares at 68.1p per share, and up to £50,000 of deferred consideration, payable following the collection of certain trade debtors during the six months following completion. Vendors Paul and Susan Sullivan will retire from the business upon completion but their son James Sullivan, currently serving as General Manager, will continue to lead the AST team, to enable a smooth transition into the Croma Group.
Croma Security Solutions 10 year share price chart
Trading ahead
The news follows a positive trading update announced by Croma on 20th July which revealed that revenues for FY2026 (to June) are expected at c.£11 million, slightly ahead of market expectations and representing growth of c.15% over 2025. EBITDA is also expected to be marginally ahead of expectations at around £1 million, but down slightly from £1.1 million in 2025, reflecting a planned increase in investment in the business.
The performance is said to have been driven by contributions from the two acquisitions completed during the second half of the financial year, together with continued revenue growth, driven by healthy demand from both retail and commercial customers. Existing and new clients continued to invest in maintaining and enhancing their security infrastructure, supported by increasing regulatory requirements and a continued focus on protecting people, property and assets.
During H2, Croma completed the acquisition of TLS Security Systems, an established locksmith and security business based in Taunton, Somerset, in January 2026, followed by the acquisition of Southern Security Services Limited, an established electronic security and specialist locksmith business based in Poole, Dorset, in March 2026. Both businesses are said to have been successfully integrated and are trading in line with management's expectations.
Well financed
On the balance sheet, net cash was £4.9 million as at 30th June, ahead of market forecasts and with no bank debt. Currently trading at 70p per share Croma is capitalised at just £9.6 million, with the net cash covering over half the market cap and providing the resources to further fund the acquisition strategy and invest in the ongoing business. We look forward to the release of the full year results and further news on the company’s healthy pipeline of acquisition opportunities.
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Disclosures
Croma is not a corporate client of Optimo Research Ltd.
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