RNS Number : 1266I
London Security PLC
09 May 2025
London Security plc
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE UK VERSION OF REGULATION (EU) NO 596/2014 WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Final Results for the Year Ended 31 December 2024
Chairman's statement
J.J. Murray, Chairman
Financial Highlights
Financial highlights of the audited results for the year ended 31 December 2024 compared with the year ended 31 December 2023 are as follows:
• revenue of £220.7 million (2023: £219.7 million),
• operating profit of £29.7 million (2023: £31.6 million),
• profit for the year of £21.7 million (2023: £23.3 million),
• cash of £29.6 million (2023: £32.7 million),
• earnings per share for the year of £1.77 (2023: £1.90) and
• a dividend per share of £1.22 (2023: £1.24).
Trading review
The financial highlights illustrate that the Group's revenue increased by £1.0 million (0.5%) to £220.7 million and operating profit decreased by £1.8 million (5.7%) to £29.8 million. These results reflect:
• The movement in the Euro to Sterling average exchange rate, which had an adverse effect of £4.6 million on reported revenue and £0.8 million on operating profit. A more detailed review of this year's performance is given in the Financial Review and the Strategic Report.
• 2024 was a period of consolidation for the Group following the 16.2% increase in operating profit that was enjoyed in 2023. Whilst operating profit has decreased versus 2023, this still represents a 9.2% increase on 2022.
• The core servicing business remains very consistent with a slight fall in special projects, the instance of which is unpredictable.
• Although inflation has moderated since last year, we continue to experience upward input price pressures. These supply price increases have been passed on to our customers where possible. Business confidence is low and is depressing growth and reducing our customers' appetite to invest. All the countries in which we operate are experiencing low or no growth.
Acquisitions
It remains a principal aim of the Group to grow through acquisition. Acquisitions are being sought throughout Europe and the Group will invest at prices where an adequate return is envisaged by the Board. In the year under review the Group completed the acquisition of service contracts from smaller well-established businesses for integration into the Group's existing subsidiaries and has grown its presence in Austria, the Netherlands, the United Kingdom, Belgium, Luxembourg, France and Germany.
Management and staff
2024 was a year in which the staff performed well and, on behalf of the shareholders, I would like to express thanks and appreciation for their contribution. The Group recognises that we can only achieve our aims with talented and dedicated colleagues who provide outstanding customer service in every area of the business.
Dividends
An interim dividend in respect of 2024 of £0.80 per ordinary share was paid to shareholders on 29 November 2024. The Board is recommending the payment of a final dividend in respect of 2024 of £0.42 per ordinary share. This would be paid on 12 July 2025 to shareholders on the register on 13 June 2025 with the shares marked ex-dividend on 12 June 2025.
Future prospects
The markets in which we operate are entering what is likely to be a period of low growth. The London Security Group however has a healthy balance sheet, strong cash reserves and a track record for good cash generation. The Board therefore considers that the Group is well placed to weather any downturn. We will also continue to invest in our future and the Group plans to continue to grow through acquisitions.
Annual General Meeting
The Annual General Meeting ("AGM") will be held at 2 Jubilee Way, Elland, West Yorkshire HX5 9DY, on 25 June 2025 at 11.30 am. The Company confirms that shareholders are able to attend in person should they wish to do so. However, we strongly encourage shareholders to vote on all resolutions by completing the enclosed form of proxy for use at that Meeting, which you are requested to return in accordance with the instructions on the form.
J-J. Murray
Chairman
9 May 2025
Consolidated income statement
for the year ended 31 December 2024
2024
2023
Note
£'000
£'000
Revenue
220,653
219,705
Cost of sales
(58,752)
(58,988)
Gross profit
161,901
160,717
Distribution costs
(82,323)
(81,373)
Administrative expenses
(49,924)
(47,762)
Operating profit
29,654
31,582
Finance income
420
226
Finance costs
(377)
(264)
Finance costs - net
43
(38)
Profit before income tax
29,697
31,544
Income tax expense
(8,032)
(8,280)
Profit for the year attributable to equity shareholders of the Company
21,665
23,264
Earnings per share
Basic and diluted
1
176.7p
189.8p
The above results are all as a result of continuing operations.
Consolidated statement of comprehensive income
for the year ended 31 December 2024
2024
2023
£'000
£'000
Profit for the financial year
21,665
23,264
Other comprehensive (expense)/income:
Items that may be reclassified subsequently to profit or loss:
- currency translation differences on foreign currency net investments
(4,284)
(1,579)
Items that will not be reclassified subsequently to profit or loss:
- actuarial gain recognised in the Nu-Swift Pension Scheme
38
52
- movement on deferred tax relating to the Nu-Swift Pension Scheme surplus
26
(18)
- actuarial gain/(loss) recognised in the Ansul Pension Scheme
308
(171)
- movement on deferred tax relating to the Ansul Pension Scheme deficit
(75)
43
Other comprehensive expense for the year, net of tax
(3,987)
(1,673)
Total comprehensive income for the year
17,678
21,591
Consolidated statement of changes in equity
for the year ended 31 December 2024
Capital
Ordinary
Share
redemption
Merger
Other
Retained
Total
shares
premium
reserve
reserve
reserves
earnings
equity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
At 1 January 2023
123
344
1
2,033
8,658
134,722
145,881
Total comprehensive income for the year
Profit for the financial year
-
-
-
-
-
23,264
23,264
Other comprehensive income/(expense):
- exchange adjustments
-
-
-
-
(1,579)
-
(1,579)
- actuarial loss on pension schemes
-
-
-
-
-
(119)
(119)
- net movement on deferred tax relating to pension deficit
-
-
-
-
-
25
25
Total comprehensive income/(expense) for the year
-
-
-
-
(1,579)
23,170
21,591
Contributions by and distributions to owners of the Company:
- purchase of own shares
-
-
-
-
-
(33)
(33)
- dividends
-
-
-
-
-
(15,196)
(15,196)
-
-
-
-
-
(15,229)
(15,229)
At 31 December 2023 and 1 January 2024
123
344
1
2,033
7,079
142,663
152,243
Total comprehensive income for the year
Profit for the financial year
-
-
-
-
-
21,665
21,665
Other comprehensive income:
- exchange adjustments
-
-
-
-
(4,284)
-
(4,284)
- actuarial gain on pension schemes
-
-
-
-
-
346
346
- net movement on deferred tax relating to pension schemes
-
-
-
-
-
(49)
(49)
Total comprehensive income for the year
-
-
-
-
(4,284)
21,962
17,678
Contributions by and distributions to owners of the Company:
- dividends
-
-
-
-
-
(14,950)
(14,950)
At 31 December 2024
123
344
1
2,033
2,795
149,675
154,971
The merger reserve is not a distributable reserve. The other reserves relate entirely to the effects of changes in foreign currency exchange rates.
Consolidated statement of financial position
as at 31 December 2024
2024
2023
£'000
£'000
Assets
Non-current assets
Property, plant and equipment
18,351
17,749
Right of use assets
7,159
6,549
Intangible assets
76,744
77,382
Deferred tax asset
623
749
Retirement benefit surplus
359
342
103,236
102,771
Current assets
Inventories
21,476
22,143
Trade and other receivables
50,855
44,488
Cash and cash equivalents
29,561
32,737
101,892
99,368
Total assets
205,128
202,139
Liabilities
Current liabilities
Trade and other payables
(36,862)
(36,403)
Income tax liabilities
(2,328)
(2,275)
Borrowings
(221)
(381)
Lease liabilities
(2,449)
(2,274)
Provision
(455)
(6)
(42,315)
(41,339)
Non-current liabilities
Trade and other payables
(1,100)
(1,090)
Borrowings
(27)
(97)
Lease liabilities
(4,873)
(4,402)
Deferred tax liabilities
(1,311)
(1,811)
Retirement benefit obligations
(531)
(1,021)
Provision
-
(136)
(7,842)
(8,557)
Total liabilities
(50,157)
(49,896)
Net assets
154,971
152,243
Shareholders' equity
Ordinary shares
123
123
Share premium
344
344
Capital redemption reserve
1
1
Merger reserve
2,033
2,033
Other reserves
2,795
7,079
Retained earnings
149,675
142,663
Total equity
154,971
152,243
Consolidated statement of cash flows
for the year ended 31 December 2024
2024
2023
£'000
£'000
Cash flows from operating activities
Cash generated from operations
33,880
38,234
Interest paid
(358)
(256)
Income tax paid
(7,700)
(8,229)
Net cash generated from operating activities
25,822
29,749
Cash flows from investing activities
Acquisition of subsidiary undertakings (net of cash acquired)
-
(1,582)
Purchases of property, plant and equipment
(6,641)
(7,665)
Proceeds from the sale of property, plant and equipment
632
721
Purchases of intangible assets
(4,162)
(3,033)
Interest received
404
212
Net cash used in investing activities
(9,767)
(11,347)
Cash flows from financing activities
Repayments of borrowings
(206)
(1,443)
Payment of lease liabilities
(2,725)
(2,484)
Dividends paid to the Company's shareholders
(14,950)
(15,196)
Purchase of own shares
-
(33)
Net cash used in financing activities
(17,881)
(19,156)
Net decrease in cash in the year
(1,826)
(754)
Cash and cash equivalents at the beginning of the year
32,737
33,962
Effects of exchange rates on cash and cash equivalents
(1,350)
(471)
Cash and cash equivalents at the end of the year
29,561
32,737
Notes to the financial statements
for the year ended 31 December 2024
1 Earnings per share
The calculation of basic earnings per ordinary share ("EPS") is based on the profit on ordinary activities after taxation of £21,665,000 (2023: £23,264,000) and on 12,259,877 (2023: 12,260,286) ordinary shares, being the weighted average number of ordinary shares in issue during the year.
For diluted EPS, the weighted average number of shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. There was no difference in the weighted average number of shares used for the calculation of basic and diluted earnings per share as there are no potentially dilutive shares outstanding.
2024
2023
£'000
Pence
£'000
Pence
Profit on ordinary activities after taxation
21,665
176.7
23,264
189.8
2 This financial information within this preliminary announcement does not constitute the Company's statutory accounts within the meaning of Section 434 of the Companies Act 2006. The results for the year ended 31 December 2024 have been extracted from the full accounts of the Group for that year which received an unmodified auditor's report, and which have not yet been delivered to the Registrar of Companies. The financial information for the year ended 31 December 2023 is derived from the statutory accounts for that year, which have been delivered to the Registrar of Companies. The report of the auditor on those filed accounts was unmodified and does not include a statement under section 498(2) or (3) of the Companies Act 2006.
This preliminary announcement has been prepared in accordance with the recognition and measurement principles of UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006 and in accordance with the AIM rules. The financial information included in this preliminary announcement does not include all the disclosures required in accounts prepared in accordance with UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006 and accordingly it does not itself comply with UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006. The accounting policies used in the preparation of this preliminary announcement have remained unchanged from those set out in the statutory accounts for the year ended 31 December 2023. They are also consistent with those in the full accounts for the year ended 31 December 2024, which have yet to be published.
The Group will post its annual report and accounts to shareholders on 22 May 2025, a copy of the annual report and accounts will be available on the company's website (www.londonsecurity.org).
The person responsible for arranging the release of this announcement on behalf of the Company is Richard Pollard, Company Secretary.
Enquiries
London Security plc
Richard Pollard Company Secretary
Tel: 01422 372 852
Zeus (Nomad and Broker)
Dan Bate / Darshan Patel / George Duxberry
Tel: 0203 829 5000
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