REG - London Security PLC - Final Results for the Year Ended 31 December 2024
09/05/2025 14:30
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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)
- - - - - - 25 25
net movement on deferred tax relating to pension deficit
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 (http://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 Tel: 01422 372 852
Company Secretary
Zeus (Nomad and Broker)
Dan Bate / Darshan Patel / George Duxberry Tel: 0203 829 5000
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