RNS Number : 1728Z
London Security PLC
15 September 2025
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.
London Security PLC
(the "Group" or "Company")
Interim results for the six months ended 30 June 2025
Chairman's statement
J-J. Murray, Chairman
FInancial Highlights
• Revenue £116.9m (2024: £110.9m)
• Operating profit £12.4m (2024: £13.4m)
• Earnings per share 70.8p (2024: 78.4p)
Trading
The financial highlights illustrate that the Group's revenue increased by £6.0 million (5.4%) to £116.9 million.
Operating profit decreased by £1.0 million (7.5%) to £12.4 million.
These results include the adverse movement in the Euro to Sterling average exchange rate, which has increased from 1.17 to 1.19. If the 2025 results from the European subsidiaries had been translated at 2024 rates, revenue would have been £118.5 million instead of £116.9 million, which would represent an increase of 6.9% on the prior year. On the same basis, operating profit would have been £12.6 million instead of £12.4 million.
The main factors behind the decline in operating profit have been identified as a shortage of engineers, the increased costs of employing engineers and ongoing inflation.
Management have addressed the shortage of engineers with a recruitment drive in the first quarter of 2025. After an initial period of training these new engineers are now servicing the Group's customers. Their performance is expected to accelerate through the year ahead with active mentoring and further training from their field service managers.
Although inflation has moderated since last year, the Group continues to experience upward input price pressures. These supply price increases have been passed on to the Group's customers where possible.
Acquisitions
In the six months to the end of June, the Group strengthened its presence in the Netherlands and the United Kingdom through the acquisition of service contracts to be integrated into the Group's existing subsidiaries. It remains a principal aim of the Group to grow through acquisition. Acquisitions are being sought throughout Europe and the Group will invest at the upper end of the price spectrum where an adequate return is envisaged by the Board.
Cash and financing
The Group's cash balance at 30 June 2025 was £42.7 million. This is an increase of £13.1 million on the 31 December 2024 balance of £29.6 million. This partially reflects the success in collecting trade receivables that increased in quarters 3 and 4 of 2024 following the introduction of a new IT system, which was discussed in the Annual Report's Financial Review.
Prospects
All the countries in which the Group operates are experiencing low or no growth. However, demand for the Group's products and services remains strong as they are non-discretionary expenditure items. The London Security Group has a healthy balance sheet, strong cash reserves and a track record for good cash generation. The Board therefore considers that with its strong balance sheet and material net cash position the Group is well placed to cope with a period of low growth.
Dividends
A final dividend in respect of 2024 of £0.42 per ordinary share was paid to shareholders on 11 July 2025.
J-J. Murray
Chairman
15 September 2025
Consolidated income statement
for the six months ended 30 June 2025
Unaudited
Unaudited
Audited
six months
six months
year
ended
ended
ended
30 June
30 June
31 December
2025
2024
2024
Note
£'000
£'000
£'000
Revenue
116,922
110,864
220,653
Cost of sales
(32,274)
(30,088)
(58,752)
Gross profit
84,648
80,776
161,901
Distribution costs
(45,551)
(41,835)
(82,323)
Administrative expenses
(26,698)
(25,589)
(49,924)
Operating profit
12,399
13,352
29,654
Finance income
158
213
420
Finance costs
(224)
(162)
(377)
Finance income/(cost) - net
(66)
51
43
Profit before income tax
12,333
13,403
29,697
Income tax expense
(3,648)
(3,813)
(8,032)
Profit for the period
8,685
9,590
21,665
Earnings per share
Basic and diluted
3
70.8p
78.4p
176.7p
Dividends
Dividends paid per share
Nil
Nil
122.0p
The above are all as a result of continuing operations.
Consolidated statement of comprehensive income
for the six months ended 30 June 2025
Unaudited
Unaudited
Audited
six months
six months
year
ended
ended
ended
30 June
30 June
31 December
2025
2024
2024
£'000
£'000
£'000
Profit for the financial period
8,685
9,590
21,665
Other comprehensive income/(expense):
Items that will not be reclassified subsequently to profit or loss:
- currency translation differences on foreign operation consolidation, net of tax
3,017
(2,096)
(4,284)
- actuarial gain recognised in the Nu-Swift pension scheme
-
-
38
- movement on deferred tax relating to the Nu-Swift pension scheme
-
-
26
- actuarial loss recognised in the Ansul pension scheme
-
-
308
- movement on deferred tax relating to the Ansul pension scheme
-
-
(75)
Other comprehensive income/(expense) for the period, net of tax
3,017
(2,096)
(3,987)
Total comprehensive income for the period
11,702
7,494
17,678
Consolidated statement of changes in equity
for the six months ended 30 June 2025
Share
Share
Capital
Merger
Other
Retained
capital
premium
redemption
reserve
reserve
earnings
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
At 1 January 2024
123
344
1
2,033
7,079
142,663
152,243
Comprehensive (expense)/income for the period:
- profit for the period
-
-
-
-
-
9,590
9,590
- exchange adjustments
-
-
-
-
(2,096)
-
(2,096)
Total comprehensive (expense)/income for the period
-
-
-
-
(2,096)
9,590
7,494
At 30 June 2024
123
344
1
2,033
4,983
152,253
159,737
Comprehensive (expense)/income for the period:
- profit for the period
-
-
-
-
-
12,075
12,075
- exchange adjustments
-
-
-
-
(2,188)
-
(2,188)
- actuarial gain on pension schemes
-
-
-
-
-
346
346
- net movement on deferred tax relating to pension schemes
-
-
-
-
-
(49)
(49)
Total comprehensive (expense)/income for the period
-
-
-
-
(2,188)
12,372
10,184
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
Comprehensive income for the period:
- profit for the period
-
-
-
-
-
8,685
8,685
- exchange adjustments
-
-
-
-
3,017
-
3,017
Total comprehensive income for the period
-
-
-
-
3,017
8,685
11,702
At 30 June 2025
123
344
1
2,033
5,812
158,360
166,673
Consolidated statement of financial position
as at 30 June 2025
Unaudited
Unaudited
Audited
as at
as at
as at
30 June
30 June
31 December
2025
2024
2024
£'000
£'000
£'000
Assets
Non-current assets
Property, plant and equipment
19,950
18,216
18,351
Right-of-use assets
7,896
7,100
7,159
Intangible assets
76,167
76,719
76,744
Deferred tax asset
724
740
623
Retirement benefit surplus
-
342
359
104,737
103,117
103,236
Current assets
Inventories
22,602
21,401
21,476
Trade and other receivables
50,182
47,321
50,855
Cash and cash equivalents
42,739
39,452
29,561
115,523
108,174
101,892
Total assets
220,260
211,291
205,128
Liabilities
Current liabilities
Trade and other payables
(40,272)
(38,326)
(36,862)
Income tax liabilities
(1,742)
(1,406)
(2,328)
Borrowings
(189)
(264)
(221)
Lease liabilities
(2,795)
(2,347)
(2,449)
Provision for liabilities and charges
(472)
(6)
(455)
(45,470)
(42,349)
(42,315)
Non-current liabilities
Trade and other payables
(996)
(1,291)
(1,100)
Borrowings
(54)
(82)
(27)
Lease liabilities
(5,298)
(4,894)
(4,873)
Deferred income tax liabilities
(1,220)
(1,810)
(1,311)
Retirement benefit obligations
(549)
(995)
(531)
Provision for liabilities and charges
-
(133)
-
(8,117)
(9,205)
(7,842)
Total liabilities
(53,587)
(51,554)
(50,157)
Net assets
166,673
159,737
154,971
Shareholders' equity
Ordinary shares
123
123
123
Share premium
344
344
344
Capital redemption reserve
1
1
1
Merger reserve
2,033
2,033
2,033
Other reserves
5,812
4,983
2,795
Retained earnings
158,360
152,253
149,675
Total equity
166,673
159,737
154,971
Consolidated statement of cash flow
for the six months ended 30 June 2025
Unaudited
Unaudited
Audited
six months
six months
year
ended
ended
ended
30 June
30 June
31 December
2025
2024
2024
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
24,323
20,137
33,880
Interest paid
(224)
(162)
(358)
Income tax paid
(6,298)
(6,440)
(7,700)
Net cash generated from operating activities
17,801
13,535
25,822
Cash flows from investing activities
Purchases of property, plant and equipment
(3,915)
(3,429)
(6,641)
Proceeds from sale of property, plant and equipment
308
323
632
Purchases of intangible assets
(483)
(1,781)
(4,162)
Interest received
158
213
404
Net cash used in investing activities
(3,932)
(4,674)
(9,767)
Cash flows from financing activities
Repayments of borrowings
(103)
(132)
(206)
Payment of lease liabilities
(1,476)
(1,344)
(2,725)
Dividends paid to Company's shareholders
-
-
(14,950)
Net cash used in financing activities
(1,579)
(1,476)
(17,881)
Net increase/(decrease) in cash in the period
12,290
7,385
(1,826)
Cash and cash equivalents at the beginning of the period
29,561
32,737
32,737
Effects of exchange rates on cash and cash equivalents
888
(670)
(1,350)
Cash and cash equivalents at the end of the period
42,739
39,452
29,561
Notes to the financial statements
for the six months ended 30 June 2025
1 Nature of information
The financial information contained in this Interim Statement has been neither audited nor reviewed by the auditor and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the six months ended 30 June 2025 has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the year ended 31 December 2024. The principal risks and uncertainties as disclosed in the year end accounts are considered to be consistent with those that are still applicable now.
Comparative figures for the year ended 31 December 2024 have been extracted from the statutory accounts for the year ended 31 December 2024, which have been delivered to the Registrar of Companies. The Independent Auditor's Report on those accounts was unqualified and did not contain an emphasis of matter paragraph or any statement under Section 498 of the Companies Act 2006.
2 Basis of preparation
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and income and expense. Actual results may differ from these estimates.
3 Earnings per share
The calculation of basic earnings per ordinary share is based on the profit on ordinary activities after taxation of £8,685,000 (2024: £9,590,000) and on 12,259,877 (2024: 12,259,877) ordinary shares, being the weighted average number of ordinary shares in issue during the period.
For diluted earnings per ordinary share, the weighted average number of shares in issue is adjusted to assume conversion of all potentially dilutive 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.
Unaudited
Unaudited
Audited
six months
six months
year
ended
ended
ended
30 June
30 June
31 December
2025
2024
2024
£'000
£'000
£'000
Profit on ordinary activities after taxation
8,685
9,590
21,665
Basic earnings per ordinary share
70.8p
78.4p
176.7p
4 Actuarial valuation of the pension scheme
As permitted under IAS 19 the Group has not prepared an actuarial valuation of the pension scheme assets and liabilities for the Interim Statement 2025. In accordance with IAS 19 such a valuation will be prepared for the purposes of the Group's Annual Report and Accounts 2025.
For further information, please contact:
London Security plc
Richard Pollard
Company Secretary Tel : 01422 372852
Zeus Capital Limited
Darshan Patel / George Duxberry Tel : 0203 829 5000
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