REG - London Security PLC - Final Results <Origin Href="QuoteRef">LSC.L</Origin>

London SecurityAnnouncement

29/04/2016 07:06

RNS Number : 7358W
London Security PLC
29 April 2016
London Security plc
Final Results for the Year Ended 31 December 2015
CHAIRMAN'S STATEMENT
FINANCIAL HIGHLIGHTS
Financial highlights of the audited results for the year ended 31 December 2015 compared with the year ended 31 December 2014 are as follows:
 revenue of 101.2 million (2014: 100.9 million);
 operating profit before depreciation and amortisation of 23.2 million (2014: 23.9 million);
 operating profit of 18.5 million (2014: 19.7 million);
 profit before tax of 18.2 million (2014: 19.0 million);
 profit after income tax of 12.3 million (2014: 12.7 million); 
 earnings per share of 100.1p (2014: 103.4p); and
 a dividend per share of 0.68 (2014: 0.62).
TRADING REVIEW
The financial highlights illustrate that the Group's revenue increased by 0.3 million (0.3%) to 101.2 million. However, these results are impacted by the movement in the Euro to Sterling average exchange rate, which has increased from 1.24 to 1.38. This movement in exchange rate had an adverse effect of 8.7 million on reported turnover. If the 2015 results had been translated at 2014 rates, revenue would have been 109.9 million instead of 101.2 million (increase of 8.9% on prior year).
Operating profit decreased by 1.2 million (6.1%) to 18.5 million. Adjusting for the change in the exchange rate on the same basis as above, operating profit would have been 20.4 million instead of 18.5 million (increase of 3.6%). This performance is very satisfactory and whilst the trading environment remains difficult we are hopeful of growth returning to our market.
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 has consolidated its presence, particularly in the Netherlands and the UK with the acquisitions of service contracts from ten smaller well established businesses for integration into the Group's existing subsidiaries. In addition, with the acquisition of DC Security in Belgium the Group has entered the market for intruder alarms.
MANAGEMENT AND STAFF
2015 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 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
A final dividend in respect of 2014 of 0.31 per ordinary share was paid to shareholders on 8 July 2015. An interim dividend in respect of 2015 of 0.37 per ordinary share was paid to shareholders on 30 October 2015. The Board is recommending the payment of a final dividend in respect of 2015 of 0.40 per ordinary share to be paid on 8 July 2016 to shareholders on the register on 10 June 2016. The shares will be marked ex-dividend on 9 June 2016.
FUTURE PROSPECTS
Quantitative easing, lower energy prices and loosening credit conditions are all enhancing the trading environment for our Group. Our strong profitability and sustainable business model mean we are well placed to take advantage of this trend in 2016.For the future, customer care is becoming increasingly important in this ever competitive market. To retain our valued customers we need to strive to serve them at the highest possible level. 
ANNUAL GENERAL MEETING
The Annual General Meeting will be held at 10 Bruton Street, 5th Floor, London W1J 6PX on 22 June 2016 at 11 am. 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. Your Directors look forward to meeting you at that time.
J.G. Murray, Chairman
28 April 2016
Consolidated Income Statement
for the year ended 31 December 2015

2015
2014
Note
'000
'000
Revenue
101,165
100,876
Cost of sales
(20,373)
(18,638)
Gross profit
80,792
82,238
Distribution costs
(37,304)
(38,106)
Administrative expenses
(25,010)
(24,451)
Operating profit
18,478
19,681
EBITDA*
23,191
23,938
Depreciation and amortisation
(4,713)
(4,257)
Operating profit
18,478
19,681
Finance income
179
188
Finance costs
(446)
(832)
Finance costs - net
(267)
(644)
Profit before income tax
18,211
19,037
Income tax expense
(5,942)
(6,362)
Profit for the year attributable to equity shareholders of the Company
12,269
12,675
Earnings per share
Basic and diluted
1
100.1p
103.4p
* Earnings before interest, tax, depreciation and amortisation.
The above results are all as a result of continuing operations.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2015
2015
2014
'000
'000
Profit for the financial year
12,269
12,675
Other comprehensive (loss)/income:
Items that may be reclassified subsequently to profit or loss
- currency translation differences on foreign currency net investments, net of tax
(1,168)
(1,955)
Items that will not be reclassified subsequently to profit or loss
- actuarial (loss)/gain recognised in the NuSwift pension scheme
(406)
127
- movement on deferred tax relating to NuSwift pension scheme surplus
142
(518)
- actuarial gain/(loss) recognised in the Ansul pension scheme
163
(191)
- movement on deferred tax relating to Ansul pension scheme deficit
(56)
69
Other comprehensive loss for the year, net of tax
(1,325)
(2,468)
Total comprehensive income for the year
10,944
10,207


Consolidated Statement of Changes in Equity
for the year ended 31 December 2015
Profit
Share
Share
Capital
Merger
Other
and loss
capital
premium
redemption
reserve
reserve
account
Total
'000
'000
'000
'000
'000
'000
'000
At 1 January 2014
123
344
1
2,033
5,713
74,597
82,811
Total comprehensive income for the year
Profit for the financial period
-
-
-
-
-
12,675
12,675
Other comprehensive income:
- exchange adjustments
-
-
-
-
(1,955)
-
(1,955)
- actuarial loss on pension schemes
-
-
-
-
-
(64)
(64)
- net movement on deferred tax relatingtopension asset
-
-
-
-
-
(449)
(449)
Total comprehensive income for the year
-
-
-
-
(1,955)
12,162
10,207
Contributions by and distributions to owners oftheCompany:
- dividends
-
-
-
-
-
(7,602)
(7,602)
Total contributions by and distributions toowners oftheCompany
-
-
-
-
-
(7,602)
(7,602)
At 1 January 2015
123
344
1
2,033
3,758
79,157
85,416
Total comprehensive income for the year
Profit for the financial period
-
-
-
-
-
12,269
12,269
Other comprehensive income:
- exchange adjustments
-
-
-
-
(1,168)
-
(1,168)
- actuarial loss on pension schemes
-
-
-
-
-
(243)
(243)
- net movement on deferred tax relatingtopension asset
-
-
-
-
-
86
86
Total comprehensive income for the year
-
-
-
-
(1,168)
12,112
10,944
Contributions by and distributions to owners oftheCompany:
- dividends
-
-
-
-
-
(8,337)
(8,337)
Total contributions by and distributions toowners oftheCompany
-
-
-
-
-
(8,337)
(8,337)
At 31 December 2015
123
344
1
2,033
2,590
82,932
88,023
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 2015
2015
2014
'000
'000
Assets
Noncurrent assets
Property, plant and equipment
9,789
9,747
Intangible assets
60,594
61,400
Deferred tax asset
690
753
Retirement benefit surplus
3,196
3,283
74,269
75,183
Current assets
Inventories
9,689
9,494
Trade and other receivables
19,901
19,573
Cash and cash equivalents
19,736
20,978
49,326
50,045
Total assets
123,595
125,228
Liabilities
Current liabilities
Trade and other payables
(16,666)
(18,232)
Income tax liabilities
(1,335)
(1,389)
Borrowings
(1,679)
(1,782)
Provision for liabilities and charges
(35)
-
(19,715)
(21,403)
Noncurrent liabilities
Trade and other payables
(669)
(739)
Borrowings
(11,417)
(13,678)
Derivative financial instruments
(190)
(227)
Deferred tax liabilities
(1,696)
(1,701)
Retirement benefit obligations
(1,684)
(1,843)
Provision for liabilities and charges
(201)
(221)
(15,857)
(18,409)
Total liabilities
(35,572)
(39,812)
Net assets
88,023
85,416
Shareholders' equity
Ordinary shares
123
123
Share premium
344
344
Capital redemption reserve
1
1
Merger reserve
2,033
2,033
Other reserves
2,590
3,758
Retained earnings
82,932
79,157
Total shareholders' equity
88,023
85,416
Consolidated Statement of Cash Flow
for the year ended 31 December 2015
2015
2014
'000
'000
Cash flows from operating activities
Cash generated from operations
20,215
24,338
Interest paid

(425)
(472)
Income tax paid

(5,889)
(5,218)
Net cash generated from operating activities

13,901
18,648
Cash flows from investing activities


Acquisition of subsidiary undertakings (net of cash acquired)
(1,301)
(2,164)
Purchases of property, plant and equipment

(2,363)
(2,304)
Proceeds from sale of property, plant and equipment

236
242
Purchases of intangible assets

(974)
(3,519)
Interest received

27
68
Net cash used in investing activities

(4,375)
(7,677)
Cash flows from financing activities


Repayments of borrowings

(1,663)
(1,855)
Dividends paid to Company's shareholders

(8,337)
(7,602)
Net cash used in financing activities

(10,000)
(9,457)
Effects of exchange rates on cash and cash equivalents

(768)
(1,101)
Net (decrease)/increase in cash in the year

(1,242)
413
Cash and cash equivalents at the beginning of the year

20,978
20,565
Cash and cash equivalents at end of the year
19,736
20,978


Notes to the financial statements
for the year ended 31 December 2015
1 Earnings per share
The calculation of basic earnings per ordinary share ("EPS") is based on the profit on ordinary activities after taxation of12,269,000 (2014: 12,675,000) and on 12,261,477 (2014: 12,261,477) ordinary shares, being the weighted average number of ordinary shares inissue 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 anddiluted earnings pershare as there are no potentially dilutive shares outstanding.
2015
2014
'000
Pence
'000
Pence
Profit on ordinary activities after taxation
12,269
100.1
12,675
103.4
2This 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 2015 have been extracted from the full accounts of the Group for that year which received an unqualified auditor's report and which have not yet been delivered to the Registrar of Companies. The financial information for the year ended 31 December 2014 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 unqualified. The accounts for the year ended 31 December 2015 and 31 December 2014 did not contain a statement under s498 (1) to (4) 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 12 May 2016. 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 372 852


WH Ireland Limited

Chris Fielding / Liam Gribben
Tel: 0207 220 1666





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