London Security logo

LSC - London Security News Story

2400p 0.0  0.0%

Last Trade - 04/05/21

Small Cap
Market Cap £294.3m
Enterprise Value £268.9m
Revenue £142.3m
Position in Universe 734th / 1819

London Security PLC - Final Results

Fri 27th April, 2007 1:23pm
London Security PLC27 April 2007

2007-04-27 13:23:11
London Security PLC - Final Results
RNS Number:6629V
London Security PLC
27 April 2007


27 APRIL 2007



Financial highlights of the audited results for the year ended 31 December 2006
compared with the year ended 31 December 2005 are as follows:

* Turnover of 64.4 million (2005: 64.8 million)

* Earnings before interest, taxation, depreciation and amortisation
("EBITDA") of 14.7 million (2005: 14.3 million)

* Operating profit before amortisation of goodwill of 12.7million
(2005: 12.2million).

* Operating profit of 9.6 million (2005: 9.1 million)

* Profit on ordinary activities before taxation of 8.3 million (2005:
8.1 million)


The Group's operating profit has increased by 529,000 (6%), despite one-off
charges relating to reorganisation consisting of onerous lease provisions of
350,000 (2005: Nil) and redundancy costs of 379,000 (2005: 39,000).

In mainland Europe the Group has gone from strength to strength, building upon
its strong position in servicing fire extinguishers and hose reels and growing
our new activities of alarms, emergency lights and modular first-aid boxes.

In the UK, the profit increase is largely due to reorganisation initiatives and
improved credit control. In addition, our alarm installation division has
improved by becoming more focussed on existing customers, systems modifications
and extensions.

The Group has developed new ranges of fire extinguishers and successfully
launched these products late in 2005 and 2006. These extinguishers show
improvements in terms of fire ratings, ease of operating and discharge times,
and also enabled us to achieve cost efficiencies from implementation of these
new ranges.

Group operating profit at 15% of turnover and EBITDA at 23% of turnover continue
to be among industry leading results and are expected to increase further as the
full year effects of the various initiatives implemented in 2006 are realised.


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.

In December 2006 we acquired SAS, a Belgian fire alarm company. We will use
this acquisition to develop the alarm market in Belgium and other continental
countries where we have a fire activity.

In 2007, we have acquired contracts to service fire equipment from Alba Fire in
Nairn, Scotland.


2006 was a year in which the staff performed well and, on your behalf, I would
like to express thanks and appreciation for their contribution.


The Board continues to believe that shareholder value will be enhanced by the
purchase, when appropriate, of our own shares. The earnings per share this year
and in 2005 has benefited from the Tender Offer exercise that was completed in
July 2005 when the company purchased 2.2 million shares for cancellation.

Consequently, at the forthcoming AGM, the Board will request that shareholders
vote in favour of a resolution to renew the authority to purchase up to 500,000
ordinary shares.


The Board is not recommending the payment of a final dividend this year. Future
dividend policy will be reviewed regularly by the Board.


The outlook for 2007 is for continued progress and this has been reflected in a
significantly improved first quarter's trading.

Consolidated Profit and Loss Account
For the year ended 31 December 2006

2006 2005
'000 '000
Turnover 64,426 64,811

Cost of sales (11,719) (11,888)
Gross profit 52,707 52,923

Distribution costs (24,490) (24,640)
Administrative expenses (18,594) (19,189)
Operating profit 9,623 9,094

EBITDA* 14,723 14,258
Depreciation (1,987) (2,031)
Operating profit before amortisation of goodwill 12,736 12,227
Amortisation of goodwill (3,113) (3,133)
Operating profit 9,623 9,094

Profit on disposal of fixed asset investments - 1,474
Net interest payable and similar charges (1,263) (2,062)
Other finance costs (70) (366)
Profit on ordinary activities before taxation 8,290 8,140

Taxation (3,647) (3,663)
Profit attributable to equity shareholders 4,643 4,477

Dividends (1,476) -
Profit transferred to reserves 3,167 4,477

Basic and diluted earnings per ordinary share 1 37.7p 33.4p

Dividend paid per ordinary share 12.0p -

*Earnings before Interest, Taxation, Depreciation and Amortisation

All of the above results arose from continuing operations.

Consolidated Balance Sheet
As at 31 December 2006

2006 2005
'000 '000
Fixed assets

Intangible assets 43,260 46,230
Tangible assets 7,103 7,823
50,363 54,053
Current assets

Stocks 4,593 4,897
Debtors 15,148 15,676
Cash at bank and in hand 8,676 8,253
28,417 28,826
Creditors: amounts falling due within one year
Finance debt (5,051) (5,330)
Other creditors (13,962) (15,247)
(19,013) (20,577)
Net current assets 9,404 8,249

Total assets less current liabilities 59,767 62,302
Creditors: amounts falling due after more than one year
Finance debt (30,395) (35,958)
Other creditors (54) -
Provisions for liabilities and charges (553) (399)

Net assets excluding pension liability 28,765 25,945
Pension liability (2,875) (2,999)
Net assets including pension liability 25,890 22,946

Capital and reserves

Called up share capital 123 123
Merger reserve 2,033 2,033
Profit and loss account 23,734 20,790
Equity shareholders' funds 25,890 22,946

Consolidated Cash Flow Statement
For the year ended 31 December 2006

2006 2005
'000 '000
Net cash inflow from operating activities 14,380 10,193

Return on investments and servicing of finance
Interest received 147 120
Interest paid (1,866) (1,326)
Net cash outflow from return on investments and servicing of finance (1,719) (1,206)

Corporation tax paid (3,307) (3,629)
Capital expenditure

Payments to acquire intangible fixed assets - (16)
Payments to acquire tangible fixed assets (1,868) (1,821)
Receipts from sales of tangible fixed assets 650 292
Receipt from sale of investment - 1,544
Net cash outflow for capital expenditure (1,218) (1)

Acquisitions and disposals
Payments to acquire subsidiary undertakings (248) -
Payment of deferred consideration on prior year acquisitions - (516)
Net cash outflow for acquisitions (248) (516)

Equity dividends paid to shareholders (1,476) -
Net cash inflow before use of financing 6,412 4,841

Purchase of own shares - (104)
New long-term loans - 30,000
Tender Offer - (30,007)
Repayment of long-term loans (5,858) (4,078)
Capital repayment of finance leases (131) (122)
Net cash outflow from financing (5,989) (4,311)

Increase in cash in the year 423 530

Consolidated Statement of Total Recognised Gains and Losses

2006 2005
'000 '000
Profit for the financial year 4,643 4,477
Currency translation differences on foreign currency net investments (259) (264)
Actuarial gain recognised in the pension scheme 52 469
Movement on deferred tax relating to pension scheme (16) (143)
Total recognised gains for the year 4,420 4,539

1 Earnings per Share

The calculation of basic earnings per ordinary share ("EPS") is based on the
profit on ordinary activities after taxation of 4,643,000 (2005: 4,477,000)
and on 12,303,198 (2005: 13,389,966) ordinary shares, being the weighted average
number of ordinary shares in issue during the year.

For diluted earnings per ordinary share, the weighted average number of shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The only potential ordinary shares in the Group are in respect of the
unapproved share option scheme (see note 21). The revised weighted average
number of shares is 12,304,394 (2005: 13,404,033). After taking into account
the effect of dilutive securities, the basic EPS and adjusted EPS figures are

The calculation of adjusted earnings per ordinary share is based on 12,303,198
(2005: 13,389,966) ordinary shares being the weighted average number of ordinary
shares in issue in the year and on adjusted earnings which are calculated as

2006 2005
'000 pence '000 pence
Profit on ordinary activities after taxation 4,643 37.7 4,477 33.4
Eliminate effect of:
Amortisation of goodwill 3,113 25.3 3,133 23.4
Adjusted profit on ordinary activities after taxation 7,756 63.0 7,610 56.8

The adjusted EPS figures are given in order that shareholders may understand the
effect of goodwill amortisation on the results for the year.

2 This preliminary announcement does not constitute the Company's
statutory accounts within the meaning of Section 240 of the Companies Act 1985.

The results for the year ended 31 December 2006 have been extracted from the
full accounts of the Group for that year which received an unqualified auditors'
report and which have not yet been delivered to the Registrar of Companies. The
results for the year ended 31 December 2005 have been extracted from the Group's
statutory accounts which received an unqualified auditors' report and have been
filed with the Registrar of Companies. The accounts for the year ended 31
December 2006 and 31 December 2005 did not contain a statement under s237(2) or
s237(3) of the Companies Act 1985.

This preliminary announcement has been prepared in accordance with applicable
accounting standards on a basis which is consistent with that applied in
previous periods.

Enquiries: London Security plc
Richard Pollard
Company Secretary Tel: 01422 372852

This information is provided by RNS
The company news service from the London Stock Exchange

© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.