REG - London Security PLC - Interim results for six months ended 30 June 2025
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RNS Number : 1728Z London Security PLC 15 September 2025
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 2025
Chairman's statement
J-J. Murray, Chairman
FInancial Highlights
• Revenue £116.9m (2024: £110.9m)
• Operating profit £12.4m (2024: £13.4m)
• Earnings per share 70.8p (2024: 78.4p)
Trading
The financial highlights illustrate that the Group's revenue increased by
£6.0 million (5.4%) to £116.9 million.
Operating profit decreased by £1.0 million (7.5%) to £12.4 million.
These results include the adverse movement in the Euro to Sterling average
exchange rate, which has increased from 1.17 to 1.19. If the 2025 results from
the European subsidiaries had been translated at 2024 rates, revenue would
have been £118.5 million instead of £116.9 million, which would represent an
increase of 6.9% on the prior year. On the same basis, operating profit
would have been £12.6 million instead of £12.4 million.
The main factors behind the decline in operating profit have been identified
as a shortage of engineers, the increased costs of employing engineers and
ongoing inflation.
Management have addressed the shortage of engineers with a recruitment drive
in the first quarter of 2025. 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.
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 through the acquisition of service
contracts to be integrated into the Group's existing subsidiaries. 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 2025 was £42.7 million. This is an
increase of £13.1 million on the 31 December 2024 balance of £29.6 million.
This partially reflects the success in collecting trade receivables that
increased in quarters 3 and 4 of 2024 following the introduction of a new IT
system, which was discussed in the Annual Report's Financial Review.
Prospects
All the countries in which the Group operates are experiencing low or no
growth. However, 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. The Board therefore considers that with its strong balance sheet
and material net cash position the Group is well placed to cope with a period
of low growth.
Dividends
A final dividend in respect of 2024 of £0.42 per ordinary share was paid to
shareholders on 11 July 2025.
J-J. Murray
Chairman
15 September 2025
Consolidated income statement
for the six months ended 30 June 2025
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Note £'000 £'000 £'000
Revenue 116,922 110,864 220,653
Cost of sales (32,274) (30,088) (58,752)
Gross profit 84,648 80,776 161,901
Distribution costs (45,551) (41,835) (82,323)
Administrative expenses (26,698) (25,589) (49,924)
Operating profit 12,399 13,352 29,654
Finance income 158 213 420
Finance costs (224) (162) (377)
Finance income/(cost) - net (66) 51 43
Profit before income tax 12,333 13,403 29,697
Income tax expense (3,648) (3,813) (8,032)
Profit for the period 8,685 9,590 21,665
Earnings per share
Basic and diluted 3 70.8p 78.4p 176.7p
Dividends
Dividends paid per share Nil Nil 122.0p
The above are all as a result of continuing operations.
Consolidated statement of comprehensive income
for the six months ended 30 June 2025
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Profit for the financial period 8,685 9,590 21,665
Other comprehensive income/(expense):
Items that will not be reclassified subsequently to profit or loss:
- currency translation differences on foreign operation consolidation, net of 3,017 (2,096) (4,284)
tax
- actuarial gain recognised in the Nu-Swift pension scheme - - 38
- movement on deferred tax relating to the Nu-Swift pension scheme - - 26
- actuarial loss recognised in the Ansul pension scheme - - 308
- movement on deferred tax relating to the Ansul pension scheme - - (75)
Other comprehensive income/(expense) for the period, net of tax 3,017 (2,096) (3,987)
Total comprehensive income for the period 11,702 7,494 17,678
Consolidated statement of changes in equity
for the six months ended 30 June 2025
Share Share Capital Merger Other Retained
capital premium redemption reserve reserve earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 123 344 1 2,033 7,079 142,663 152,243
Comprehensive (expense)/income for the period:
- profit for the period - - - - - 9,590 9,590
- exchange adjustments - - - - (2,096) - (2,096)
Total comprehensive (expense)/income for the period - - - - (2,096) 9,590 7,494
At 30 June 2024 123 344 1 2,033 4,983 152,253 159,737
Comprehensive (expense)/income for the period:
- profit for the period - - - - - 12,075 12,075
- exchange adjustments - - - - (2,188) - (2,188)
- actuarial gain on pension schemes - - - - - 346 346
- - - - - (49) (49)
- net movement on deferred tax relating to pension schemes
Total comprehensive (expense)/income for the period - - - - (2,188) 12,372 10,184
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
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
Consolidated statement of financial position
as at 30 June 2025
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 19,950 18,216 18,351
Right-of-use assets 7,896 7,100 7,159
Intangible assets 76,167 76,719 76,744
Deferred tax asset 724 740 623
Retirement benefit surplus - 342 359
104,737 103,117 103,236
Current assets
Inventories 22,602 21,401 21,476
Trade and other receivables 50,182 47,321 50,855
Cash and cash equivalents 42,739 39,452 29,561
115,523 108,174 101,892
Total assets 220,260 211,291 205,128
Liabilities
Current liabilities
Trade and other payables (40,272) (38,326) (36,862)
Income tax liabilities (1,742) (1,406) (2,328)
Borrowings (189) (264) (221)
Lease liabilities (2,795) (2,347) (2,449)
Provision for liabilities and charges (472) (6) (455)
(45,470) (42,349) (42,315)
Non-current liabilities
Trade and other payables (996) (1,291) (1,100)
Borrowings (54) (82) (27)
Lease liabilities (5,298) (4,894) (4,873)
Deferred income tax liabilities (1,220) (1,810) (1,311)
Retirement benefit obligations (549) (995) (531)
Provision for liabilities and charges - (133) -
(8,117) (9,205) (7,842)
Total liabilities (53,587) (51,554) (50,157)
Net assets 166,673 159,737 154,971
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 5,812 4,983 2,795
Retained earnings 158,360 152,253 149,675
Total equity 166,673 159,737 154,971
Consolidated statement of cash flow
for the six months ended 30 June 2025
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Cash flows from operating activities
Cash generated from operations 24,323 20,137 33,880
Interest paid (224) (162) (358)
Income tax paid (6,298) (6,440) (7,700)
Net cash generated from operating activities 17,801 13,535 25,822
Cash flows from investing activities
Purchases of property, plant and equipment (3,915) (3,429) (6,641)
Proceeds from sale of property, plant and equipment 308 323 632
Purchases of intangible assets (483) (1,781) (4,162)
Interest received 158 213 404
Net cash used in investing activities (3,932) (4,674) (9,767)
Cash flows from financing activities
Repayments of borrowings (103) (132) (206)
Payment of lease liabilities (1,476) (1,344) (2,725)
Dividends paid to Company's shareholders - - (14,950)
Net cash used in financing activities (1,579) (1,476) (17,881)
Net increase/(decrease) in cash in the period 12,290 7,385 (1,826)
Cash and cash equivalents at the beginning of the period 29,561 32,737 32,737
Effects of exchange rates on cash and cash equivalents 888 (670) (1,350)
Cash and cash equivalents at the end of the period 42,739 39,452 29,561
Notes to the financial statements
for the six months ended 30 June 2025
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 2025 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 2024. 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 2024 have been extracted
from the statutory accounts for the year ended 31 December 2024, 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 £8,685,000 (2024: £9,590,000) and on
12,259,877 (2024: 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
2025 2024 2024
£'000 £'000 £'000
Profit on ordinary activities after taxation 8,685 9,590 21,665
Basic earnings per ordinary share 70.8p 78.4p 176.7p
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 2025. In
accordance with IAS 19 such a valuation will be prepared for the purposes of
the Group's Annual Report and Accounts 2025.
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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