Croma Security Solutions’ SIP Trustees Purchase 7,668 Shares at £0.69 Each for Employee Share Incentive Plan

Croma’s AIM Listing and Security Solutions Expertise

Croma Security Solutions Group Plc, trading under ticker CSSG, is an AIM-listed security solutions provider founded in 1970 and headquartered in Southampton. With over 95 employees, the company complies with AIM regulatory requirements including director transaction notifications and employee share scheme disclosures. The AIM listing offers Croma access to capital markets with a lighter regulatory burden compared to the Main Market.

The company delivers comprehensive locksmith, fire, and security services for domestic and commercial clients. With over five decades of specialist experience, Croma leverages operational expertise and strong customer relationships to drive its expansion. Its focus on innovation and service differentiates it within the UK security solutions sector.

Structure and Mechanics of the Share Incentive Plan

Croma’s Share Incentive Plan encourages employee ownership through a tax-efficient salary sacrifice scheme. Employees acquire Partnership Shares via salary sacrifice, which the company matches on a one-for-two basis with free Matching Shares. This structure provides employees with an immediate 50% return on their contribution, aligning their interests with shareholders.

On 15 July 2026, SIP Trustees purchased 7,668 shares at £0.69 each, totaling £5,290.92. This included 5,115 Partnership Shares funded by employees and 2,553 Matching Shares awarded by the company. Purchasing shares on the market avoids dilution of existing shareholders. UK tax legislation benefits both employees and employers through corporation tax relief on matching shares and income tax exemptions.

CFO Teo Andreeva’s Shareholding Update

Chief Financial Officer Teo Andreeva received 1,969 shares from the SIP acquisition on 15 July 2026, raising her total holdings to 27,749 Ordinary Shares, equivalent to 0.20% of issued share capital. As a director and person discharging managerial responsibilities (PDMR), Andreeva’s transactions are disclosed under Market Abuse Regulation (MAR) requirements to the Financial Conduct Authority and publicly via regulatory news services.

This allocation represents a new SIP acquisition notification rather than a change to a prior holding. Andreeva’s participation signals management confidence in Croma’s strategic outlook, though employee share scheme involvement is common among senior executives in listed firms.

Croma’s UK Network of 17 Security Centres

Croma operates 17 security centres across the UK, spanning from Southampton to the Midlands and Northwest. This geographic footprint supports a national security network serving local and national customers. Each centre functions as a modern facility delivering integrated locksmith, fire, and security services beyond traditional offerings.

The distributed model enhances revenue diversification and reduces regional market concentration risks. Croma serves diverse sectors including healthcare, education, leisure, entertainment, and utilities, with notable NHS Trust and national brand clients requiring complex security solutions.

Acquisition Strategy and Locksmith Business Integration

Croma’s expansion strategy focuses on acquiring traditional locksmith businesses and integrating them into its network of modern security centres. Acquired businesses gain access to broader product ranges, centralized services, and national customer bases, transforming single-location locksmith operations into comprehensive security centres.

In 2023, Croma sold its man-guarding business Vigilant for £6.5 million, using the proceeds to fund locksmith acquisitions and security centre development. Since then, the company has added new businesses and maintains a robust pipeline of locksmith stores for acquisition. This strategic shift prioritizes scalable, higher-margin security solutions over labor-intensive man-guarding services.

Workforce and Operational Scale

Croma employs over 95 staff across its 17 security centres and headquarters. The workforce includes skilled technicians, installation teams, response units, and administrative personnel. With an average of five to six employees per centre plus corporate staff, the company operates a modern security service delivery model.

The SIP’s broad employee participation aligns staff incentives with company performance and shareholder value. Employee share schemes aid retention, foster ownership mentality, and support integration during acquisition-led growth. Retaining skilled operational and management personnel is critical for Croma’s ongoing expansion.

UK Security Solutions Market and Industry Consolidation

The UK security solutions sector is fragmented with numerous independent locksmiths and regional operators. Croma targets these local businesses for acquisition, offering owners exit or transition options while integrating them into a professionally managed group benefiting from scale and resources.

The sector includes locksmith, fire safety, CCTV, access control, alarm monitoring, and integrated security solutions. Market trends favor providers offering comprehensive, multi-discipline services. Croma’s full-service positioning aligns with this shift. Healthcare, particularly NHS Trusts, represents a significant market segment driven by regulatory and duty of care requirements.

Share Price and Valuation Details of SIP Purchase

The SIP Trustees acquired 7,668 shares at £0.69 per share on 15 July 2026, reflecting the market valuation deemed appropriate for employee share allocation. This price provides a reference point for investors but does not necessarily indicate closing market price or analyst targets.

The total expenditure of £5,290.92 for the shares is modest relative to Croma’s operational scale. Given the small volume relative to AIM market trading, the transaction likely had minimal impact on share price.

Regulatory Disclosure and Director Transaction Reporting

The SIP acquisition announcement complies with Market Abuse Regulation (MAR) requirements mandating disclosure of PDMR transactions. CFO Teo Andreeva’s share acquisition was reported to the Financial Conduct Authority and publicly via regulatory news services, including detailed transaction data as required by MAR.

This transparency supports investor protection by revealing director shareholdings and transactions, helping detect insider dealing and maintaining market integrity. Andreeva’s 0.20% stake disclosure informs investors of her beneficial interest in Croma.

Strategic Significance of the Employee Share Incentive Plan

The SIP implementation underscores management’s confidence in Croma’s growth and value creation. Employee share schemes serve as retention tools and align incentives during acquisition-driven expansion. For Croma, retaining skilled personnel and management expertise is vital amid ongoing integration of acquired locksmith businesses.

Using tax-efficient share-based incentives preserves cash flow for acquisitions and working capital. The one-for-two matching share structure offers immediate financial benefits to employees and broadens share ownership across the workforce, aiding cultural integration and strategic alignment.