Interim results for six months ended 30 June 2026
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 2026
Chairman's statement
J-J. Murray, Chairman
Financial highlights
• Revenue £127.6m (2025: £116.9m)
• Operating profit £14.1m (2025: £12.4m)
• Earnings per share 80.4p (2025: 70.8p)
Trading
The financial highlights illustrate that the Group's revenue increased by £10.7 million (9.2%) to £127.6 million.
Operating profit increased by £1.7 million (13.7%) to £14.1 million.
These results include the favourable movement in the Euro to Sterling average exchange rate, which has decreased from 1.19 to 1.15. If the 2026 results from the European subsidiaries had been translated at 2025 rates, revenue would have been £124.1 million instead of £127.6 million, which would represent an increase of 6.2% on the prior year. On the same basis, operating profit would have been £13.6 million instead of £14.1 million.
The Group has continued its strategy of investing in the engineering workforce addressing the shortage of engineers with an ongoing recruitment drive. 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. Improved service performance is driving organic growth in the service pool.
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. In the United Kingdom it acquired 100% of the share capital of a standalone fire protection company, Lindum Fire Services Limited. It also acquired service contracts for integration into the Group's existing subsidiaries from other sources in the Netherlands and the United Kingdom.
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 2026 was £54.8 million. This is an increase of £8.9 million on the 31 December 2025 balance of £45.9 million.
Prospects
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.
Dividends
A final dividend in respect of 2025 of £0.42 per ordinary share was paid to shareholders on 10 July 2026.
J-J. Murray
Chairman
16 September 2026
Consolidated income statement
for the six months ended 30 June 2026
Unaudited
Unaudited
Audited
six months
six months
year
ended
ended
ended
30 June
30 June
31 December
2026
2025
2025
Note
£'000
£'000
£'000
Revenue
127,560
116,922
244,300
Cost of sales
(34,147)
(32,274)
(65,292)
Gross profit
93,413
84,648
179,008
Distribution costs
(50,062)
(45,551)
(93,011)
Administrative expenses
(29,265)
(26,698)
(53,332)
Operating profit
14,086
12,399
32,665
Finance income
186
158
284
Finance costs
(220)
(224)
(454)
Finance costs - net
(34)
(66)
(170)
Profit before income tax
14,052
12,333
32,495
Income tax expense
(4,201)
(3,648)
(8,716)
Profit for the period
9,851
8,685
23,779
Earnings per share
Basic and diluted
3
80.4p
70.8p
194.0p
Dividends
Dividends paid per share
Nil
Nil
97.0p
The above are all as a result of continuing operations.
Consolidated statement of comprehensive income
for the six months ended 30 June 2026
Unaudited
Unaudited
Audited
six months
six months
year
ended
ended
ended
30 June
30 June
31 December
2026
2025
2025
£'000
£'000
£'000
Profit for the financial period
9,851
8,685
23,779
Other comprehensive (expense)/income:
Items that will not be reclassified subsequently to profit or loss:
- currency translation differences on foreign operation consolidation, net of tax
(1,022)
3,017
4,738
- actuarial gain recognised in the Ansul pension scheme
-
-
15
- movement on deferred tax relating to the Ansul pension scheme
-
-
(4)
Other comprehensive (expense)/income for the period, net of tax
(1,022)
3,017
4,749
Total comprehensive income for the period
8,829
11,702
28,528
Consolidated statement of changes in equity
for the six months ended 30 June 2026
Share
Share
Capital
Merger
Other
Retained
capital
premium
redemption
reserve
reserve
earnings
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
At 1 January 2025
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
Comprehensive income/(expense) for the period:
- profit for the period
-
-
-
-
-
15,094
15,094
- exchange adjustments
-
-
-
-
1,721
-
1,721
- actuarial gain on pension schemes
-
-
-
-
-
15
15
- net movement on deferred tax relating to pension schemes
-
-
-
-
-
(4)
(4)
Total comprehensive income for the period
-
-
-
-
1,721
15,105
16,826
Contributions by and distributions to owners of the Company:
- dividends
-
-
-
-
-
(11,890)
(11,890)
At 31 December 2025
123
344
1
2,033
7,533
161,575
171,609
Comprehensive income/(expense) for the period:
- profit for the period
-
-
-
-
-
9,851
9,851
- exchange adjustments
-
-
-
-
(1,022)
-
(1,022)
Total comprehensive (expense)/income for the period
-
-
-
-
(1,022)
9,851
8,829
Contributions by and distributions to owners of the Company:
- purchase of own shares
-
-
-
-
-
(22)
(22)
At 30 June 2026
123
344
1
2,033
6,511
171,404
180,416
Consolidated statement of financial position
as at 30 June 2026
Unaudited
Unaudited
Audited
as at
as at
as at
30 June
30 June
31 December
2026
2025
2025
£'000
£'000
£'000
Assets
Non-current assets
Property, plant and equipment
21,893
19,950
20,823
Right-of-use assets
7,273
7,896
7,624
Intangible assets
76,591
76,167
77,028
Deferred tax asset
692
724
602
106,449
104,737
106,077
Current assets
Inventories
23,878
22,602
23,149
Trade and other receivables
53,382
50,182
50,359
Cash and cash equivalents
54,823
42,739
45,868
132,083
115,523
119,376
Total assets
238,532
220,260
225,453
Liabilities
Current liabilities
Trade and other payables
(45,342)
(40,272)
(40,713)
Income tax liabilities
(2,455)
(1,742)
(2,526)
Borrowings
(199)
(189)
(237)
Lease liabilities
(3,000)
(2,795)
(2,860)
Provision for liabilities and charges
(1)
(472)
(1)
(50,997)
(45,470)
(46,337)
Non-current liabilities
Trade and other payables
(947)
(996)
(805)
Borrowings
(109)
(54)
(117)
Lease liabilities
(4,513)
(5,298)
(5,018)
Deferred income tax liabilities
(890)
(1,220)
(890)
Retirement benefit obligations
(305)
(549)
(308)
Provision for liabilities and charges
(355)
-
(369)
(7,119)
(8,117)
(7,507)
Total liabilities
(58,116)
(53,587)
(53,844)
Net assets
180,416
166,673
171,609
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
6,511
5,812
7,533
Retained earnings
171,404
158,360
161,575
Total equity
180,416
166,673
171,609
Consolidated statement of cash flow
for the six months ended 30 June 2026
Unaudited
Unaudited
Audited
six months
six months
year
ended
ended
ended
30 June
30 June
31 December
2026
2025
2025
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
23,160
24,323
48,887
Interest paid
(220)
(224)
(452)
Income tax paid
(6,370)
(6,298)
(9,506)
Net cash generated from operating activities
16,570
17,801
38,929
Cash flows from investing activities
Acquisition of subsidiary undertakings (net of cash acquired)
(1,075)
-
(420)
Purchases of property, plant and equipment
(4,507)
(3,915)
(7,620)
Proceeds from sale of property, plant and equipment
352
308
659
Purchases of intangible assets
(489)
(483)
(2,386)
Interest received
186
158
284
Net cash used in investing activities
(5,533)
(3,932)
(9,483)
Cash flows from financing activities
Repayments of borrowings
(34)
(103)
(90)
Payment of lease liabilities
(1,632)
(1,476)
(3,002)
Purchase of own shares
(22)
-
-
Dividends paid to the Company's shareholders
-
-
(11,890)
New borrowings
-
-
163
Net cash used in financing activities
(1,688)
(1,579)
(14,819)
Net increase in cash in the period
9,349
12,290
14,627
Cash and cash equivalents at the beginning of the period
45,868
29,561
29,561
Effects of exchange rates on cash and cash equivalents
(394)
888
1,680
Cash and cash equivalents at the end of the period
54,823
42,739
45,868
Notes to the financial statements
for the six months ended 30 June 2026
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 2026 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 2025. 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 2025 have been extracted from the statutory accounts for the year ended 31 December 2025, 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 £9,851,000 (2025: £8,685,000) and on 12,259,340 (2025: 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
2026
2025
2025
£'000
£'000
£'000
Profit on ordinary activities after taxation
9,851
8,685
23,779
Basic earnings per ordinary share
80.4p
70.8p
194.0p
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 2026. In accordance with IAS 19 such a valuation will be prepared for the purposes of the Group's Annual Report and Accounts 2026.
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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