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Last Trade - 11/05/21

Sector
Technology
Size
Small Cap
Market Cap £288.1m
Enterprise Value £262.8m
Revenue £142.3m
Position in Universe 741st / 1827

Preliminary Results

Thu 5th May, 2011 10:07am
RNS Number : 0040G
London Security PLC
05 May 2011
 



LONDON SECURITY PLC

 

5 MAY 2011

 

 

PRELIMINARY RESULTS

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights of the audited results for the year ended 31 December 2010 compared with the year ended 31 December 2009 are as follows:

 

·      revenue of £85.5 million (2009: £86.0 million);

·      operating profit before depreciation and amortisation of £22.7 million (2009: £23.2 million);

·      operating profit of £19.3 million (2009: £19.8 million); and

·      profit before income tax of £18.7 million (2009: £18.3 million).

 

 

TRADING REVIEW

 

The financial highlights illustrate that the Group's revenue decreased by £0.5 million (0.6%) to £85.5 million and operating profit decreased by £0.5 million (2.5%) to £19.3 million. However these results partially reflect the movement in the Sterling to Euro average exchange rate which has increased from 1.12 to 1.16. If the 2010 results had been translated at 2009 rates, revenue would have been £87.9 million instead of £85.5 million, (increase of 2.2%).On the same basis operating profit would have been £20.0 million instead of £19.3 million, (increase of 1.0%). This performance is very satisfactory in this difficult trading environment.

 

Ongoing cost control, cash and working capital management have continued to be priorities for the Group. The Group has continued to focus on its stock levels and capital expenditure. Cost control has been achieved without any adverse impact on the operational structure of the business.

 

A more detailed review of this year's performance is given in the Operational Review and Financial Review.

 

ACQUISITIONS

 

We have continued to acquire further contracts to service fire equipment through smaller acquisitions.  No fixed overhead was added as a result of these 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 the upper end of the price spectrum where an adequate return is envisaged by the Board.

 

MANAGEMENT AND STAFF

 

2010 was a year in which the staff performed well and, on your behalf, I would like to express thanks and appreciation for their contribution.

 

FINANCING

 

The Group has benefited from the low level of interest rates and has repaid a further £8.3 million of borrowings. These two factors have resulted in a reduction in finance costs of £0.3 million.

 

 

DIVIDENDS

 

An interim dividend in respect of 2010 of £0.17 per ordinary share was paid to shareholders on 10 December 2010.

 

The Board is not recommending the payment of a final dividend in respect of 2010.

 

Dividend policy continues to be reviewed regularly by the Board.

 

 

SHARE BUY-BACK PROGRAMME

 

As previously announced, the Board continues to believe that shareholder value will be optimised by the purchase by the Company, when appropriate, of its own shares.

 

During the period under review a total of 23,850 ordinary shares were purchased for cancellation for a total consideration of £205,399.

 

The Directors confirm that they intend to actively continue to pursue this policy and any shareholder who is considering taking advantage of the share buyback programme is invited to contact their stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorised under the Financial Services and Markets Act 2000, in order to contact Brewin Dolphin Limited who are operating the buyback programme on behalf of the company.

 

 

FUTURE PROSPECTS

 

In summary 2010 was a difficult year and trading prospects for 2011 will continue to be challenging but, with the effect of past and potential acquisitions and our multi-service offering, we are in a strong position to face the challenges that will invariably be present. We therefore expect to continue to deliver strong results in the future.

 

 

 

ANNUAL GENERAL MEETING

 

The Annual General Meeting will be held at 10 Bruton Street, 5th Floor, London W1J 6PX on 8 June 2011 at 11a.m.  You will find enclosed a form of proxy for use at that Meeting which you are requested to complete and return in accordance with the instructions on the form.  I shall, along with your Directors, look forward to meeting you at that time.

 

 

 

 

J.G. MURRAY

Chairman

4 May 2011



 

Consolidated Income Statement
For the year ended 31 December 2010

 



2010

2009


Note

£'000

 £'000

Revenue


85,499

85,968

Cost of sales


(15,254)

(14,507)

Gross profit


70,245

71,461

Distribution costs


(31,755)

(32,520)

Administrative expenses


(19,162)

(19,177)

Operating profit


19,328

19,764

EBITDA*


22,679

23,171

Depreciation and amortisation


(3,351)

(3,407)

Operating profit


19,328

19,764

Finance income


1,093

560

Finance costs


(1,726)

(2,021)

Finance costs - net


(633)

(1,461)

Profit before income tax


18,695

18,303

Income tax expense


(5,613)

(3,772)

Profit for the year attributable to equity shareholders of the Company


13,082

14,531

Earnings per share




Basic and diluted

1

106.5p

118.2p





 

 

* Earnings before interest, tax, depreciation, amortisation and impairment charges.

Consolidated statement of comprehensive income

for the year ended 31 December 2010

 

 



2010

2009



£'000

 £'000

Profit for the financial year


13,082

14,531

Other comprehensive income:




Currency translation differences on foreign currency net investments net of tax

 

 

(357)

(1,366)

Foreign currency loan hedges net of tax


465

2,552

Actuarial gain/(loss) recognised in pension scheme


151

(397)

Movement on deferred tax relating to pension scheme


(21)

(177)

Net pension asset not recognised due to uncertainty over future recoverability


(653)

-

Other comprehensive income for the year, net of tax


(415)

612

Total comprehensive income for the year


12,667

15,143

 

 

 

 

Consolidated Statement of Changes in Equity

For the year ended 31 December 2010

 





Profit



Share

Merger

Other

and loss



capital

reserve

reserve

account

Total


£'000

£'000

£'000

£'000

£'000

At 1 January 2009

123

2,033

5,124

23,234

30,514

Total comprehensive income for the year






Profit for the financial period

-

-

-

14,531

14,531

Other comprehensive income:






Exchange adjustments

-

-

(1,366)

-

(1,366)

Actuarial loss on pension scheme

-

-

-

(397)

(397)

Movement on deferred tax relating to pension asset

-

-

-

(177)

(177)

Foreign currency loan hedges net of tax

-

-

2,552

-

2,552

At 1 January 2010

123

2,033

6,310

37,191

45,657

Total comprehensive income for the year






Profit for the financial period

-

-

-

13,082

13,082

Other comprehensive income:






Exchange adjustments

-

-

(357)

-

(357)

Actuarial gain on pension scheme

-

-

-

151

151

Movement on deferred tax relating to pension asset

-

-

-

(21)

(21)

Net pension asset not recognised due to uncertainty over future recoverability

-

-

-

(653)

(653)

Foreign currency loan hedges net of tax

-

-

357

108

465

Total comprehensive income for the year

-

-

-

12,667

12,667

Contributions by and distributions to owners of the Company






Dividends

-

-

-

(2,086)

(2,086)

Purchase of own shares

-

-

-

(205)

(205)

Total contributions by and distributions to owners of the Company

-

-

-

(2,291)

(2,291)

At 31 December 2010

123

2,033

6,310

47,567

56,033

The merger reserve is not a distributable reserve.

 

The other reserve relates entirely to the effects of changes in foreign currency exchange rates.



 

 

 

Consolidated Statement of Financial Position

As at 31 December 2010



2010

2009



£'000

£'000

Assets




Non-current assets




Property, plant and equipment


7,719

8,552

Intangible assets


51,960

52,427

Deferred tax asset


589

604



60,268

61,583

Current assets




Inventories


7,611

7,804

Trade and other receivables


16,604

16,840

Cash and cash equivalents


22,286

19,070



46,501

43,714

Total assets


106,769

105,297

Liabilities




Current liabilities




Trade and other payables


(14,498)

(14,525)

Income tax liabilities


(968)

(902)

Borrowings


(7,126)

(7,597)

Provision for liabilities and charges


(9)

(18)



(22,601)

(23,042)

Non-current liabilities




Trade and other payables


(457)

(18)

Borrowings


(26,730)

(35,596)

Derivative financial instruments


(30)

(296)

Deferred tax liabilities


(286)

(83)

Retirement benefit obligations


(632)

(605)

Provision for liabilities and charges


-

-



(28,135)

(36,598)

Total liabilities


(50,736)

(59,640)

Net assets


56,033

45,657

Shareholders' equity




Ordinary shares


123

123

Merger reserve


2,033

2,033

Other reserves


6,310

6,310

Retained earnings


47,567

37,191

Total shareholders' equity


56,033

45,657

 

 

 

 

 

 

Consolidated Statement of Cash Flow
For the year ended 31 December 2010

 



2010

2009



£'000

 £'000

Cash flow from operating activities




Cash generated from operations


21,845

25,003

Interest paid


(713)

(1,422)

Income tax paid


(4,900)

(4,386)

Net cash generated from operating activities


16,232

19,195

Cash flow from investing activities




Acquisition of subsidiary undertakings


-

(375)

Purchases of property, plant and equipment


(1,746)

(1,777)

Proceeds from sale of property, plant and equipment


259

271

Purchases of intangible assets


(883)

(607)

Interest received


171

120

Net cash used in investing activities


(2,199)

(2,368)

Cash flows from financing activities




Repayments of borrowings


(8,337)

(7,984)

Purchase of own shares


(205)

-

Dividends paid to Company's shareholders


(2,086)

-

Net cash used in financing activities


(10,628)

(7,984)

Effects of exchange rates on cash and cash equivalents


(189)

(648)

Net increase in cash in the year


3,216

8,195

Cash and cash equivalents at beginning of the year


19,070

10,875

Cash and cash equivalents at end of the year


22,286

19,070

 

 

 

1 Earnings per Share

 

The calculation of basic earnings per ordinary share ("EPS") is based on the profit on ordinary activities after taxation of £13,082,000 (2009: £14,531,000) and on 12,284,170 (2009: 12,294,798) 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. The only potential ordinary shares in the Group are in respect of the unapproved share option scheme. The revised weighted average number of shares is 12,284,170 (2009: 12,294,798). After taking into account the effect of dilutive securities, the basic EPS and adjusted EPS figures are unaltered.


2010


2009


£'000

Pence

£'000

Pence

Profit on ordinary activities after taxation

13,082

106.5

14,531

118.2

 

 

2        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 2010 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 financial information for the year ended 31 December 2009 is derived from the statutory accounts for that year, which have been delivered to the Registrar of Companies. The report of the auditors on those filed accounts was unqualified.  The accounts for the year ended 31 December 2010 and 31 December 2009 did not contain a statement under s498 (1) to (4) of the of the Companies Act 2006 or under s237(1) to (4) of the Companies Act 1985.

 

This preliminary announcement has been prepared in accordance with International Financial Reporting Standards. The Group will post its annual report and accounts to shareholders on 16 May 2011. A copy of the annual report and accounts can be found on the company's webpage (www.londonsecurity.org).

 

 

 

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
 
END
 
 
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