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LSC London Security Plc

3,050.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
London Security Plc LSE:LSC London Ordinary Share GB0005314363 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 3,050.00 2,800.00 3,300.00 3,050.00 3,050.00 3,050.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Fire Protection 188.9M 20.2M 1.6478 18.51 373.95M

London Security PLC Final Results (4637D)

27/04/2017 7:00am

UK Regulatory


London Security (LSE:LSC)
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TIDMLSC

RNS Number : 4637D

London Security PLC

27 April 2017

London Security plc

Final Results for the Year Ended 31 December 2016

CHAIRMAN'S STATEMENT

FINANCIAL HIGHLIGHTS

Financial highlights of the audited results for the year ended 31 December 2016 compared with the year ended 31 December 2015 are as follows:

   --      revenue of GBP114.8 million (2015: GBP101.2 million); 

-- operating profit before depreciation and amortisation of GBP26.3 million (2015: GBP23.2 million);

   --      operating profit of GBP20.9 million (2015: GBP18.5 million); 
   --      profit after income tax of GBP13.8 million (2015: GBP12.3 million); and 
   --      a dividend per share of GBP0.80 (2015: GBP0.68). 

TRADING REVIEW

The financial highlights illustrate that the Group's revenue increased by GBP13.6 million (13.4%) to GBP114.8 million. However, these results are impacted by the movement in the Euro to Sterling average exchange rate, which has decreased from 1.38 to 1.23. This movement in exchange rate had a favourable effect of GBP9.8 million on reported revenue. If the 2016 results had been translated at 2015 rates, revenue would have been GBP105.0 million instead of GBP114.8 million (increase of 3.8% on prior year).

Operating profit increased by GBP2.4 million (13.0%) to GBP20.9 million. Adjusting for the change in the exchange rate on the same basis as above, operating profit would have been GBP18.7 million instead of GBP20.9 million (increase of 1.1%). A more detailed review of this year's performance is given in the Financial Review and the Strategic Report.

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 in Belgium, the Netherlands and the UK with the acquisitions of service contracts from 15 smaller well established businesses for integration into the Group's existing subsidiaries. In addition, with the acquisition of One Protect in France and Ludwig in Germany the Group has expanded its business into two new countries.

MANAGEMENT AND STAFF

2016 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.

DIVIDS

A final dividend in respect of 2015 of GBP0.40 per ordinary share was paid to shareholders on 8 July 2016. An interim dividend in respect of 2016 of GBP0.40 per ordinary share was paid to shareholders on 8 December 2016. The Board is recommending the payment of a final dividend in respect of 2016 of GBP0.40 per ordinary share to be paid on 5 July 2017 to shareholders on the register on 9 June 2017. The shares will be marked ex-dividend on 8 June 2017.

FUTURE PROSPECTS

We are experiencing increased competition in our core market and customer care is becoming increasingly important. To retain our valued customers we need to strive to serve them at the highest possible level. We do not expect the economic environment to get any easier in 2017. Nonetheless your Group remains in a strong position and will continue to focus on meeting the needs of our customers and our shareholders.

ANNUAL GENERAL MEETING

The Annual General Meeting will be held at 2 Eaton Gate, London SW1W 9BJ on 21 June 2017 at 2 pm. 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

27 April 2017

Consolidated income statement

for the year ended 31 December 2016

 
                                                        2016      2015 
                                              Note   GBP'000   GBP'000 
 -------------------------------------------  ----  --------  -------- 
 Revenue                                             114,845   101,165 
 Cost of sales                                      (23,638)  (20,373) 
 -------------------------------------------  ----  --------  -------- 
 Gross profit                                         91,207    80,792 
 Distribution costs                                 (42,191)  (37,304) 
 Administrative expenses                            (28,154)  (25,010) 
 -------------------------------------------  ----  --------  -------- 
 Operating profit                                     20,862    18,478 
 -------------------------------------------  ----  --------  -------- 
 EBITDA*                                              26,321      23,191 
 Depreciation and amortisation                       (5,459)     (4,713) 
--------------------------------------------  ----  --------  ---------- 
 Operating profit                                     20,862      18,478 
--------------------------------------------  ----  --------  ---------- 
 Finance income                                          176       179 
 Finance costs                                         (433)     (446) 
 -------------------------------------------  ----  --------  -------- 
 Finance costs - net                                   (257)     (267) 
 Profit before income tax                             20,605    18,211 
 Income tax expense                                  (6,822)   (5,942) 
 -------------------------------------------  ----  --------  -------- 
 Profit for the year attributable to equity 
  shareholders of the Company                         13,783    12,269 
 -------------------------------------------  ----  --------  -------- 
 Earnings per share 
 Basic and diluted                               1    112.4p    100.1p 
 -------------------------------------------  ----  --------  -------- 
 
 

* 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 2016

 
                                                       2016     2015 
                                                    GBP'000  GBP'000 
-------------------------------------------------   -------  ------- 
Profit for the financial year                        13,783   12,269 
--------------------------------------------------  -------  ------- 
Other comprehensive income/(expense): 
Items that may be reclassified subsequently 
 to profit or loss: 
- currency translation differences on 
 foreign currency net investments                     4,441  (1,168) 
Items that will not be reclassified subsequently 
 to profit or loss: 
- actuarial gain/(loss) recognised in 
 the Nu-Swift pension scheme                            263    (406) 
- movement on deferred tax relating to 
 Nu-Swift pension scheme surplus                       (92)      142 
- actuarial (loss)/gain recognised in 
 the Ansul pension scheme                             (200)      163 
- movement on deferred tax relating to 
 Ansul pension scheme deficit                            61     (56) 
--------------------------------------------------  -------  ------- 
Other comprehensive income/(expense) for 
 the year, net of tax                                 4,473  (1,325) 
--------------------------------------------------  -------  ------- 
Total comprehensive income for the year              18,256   10,944 
--------------------------------------------------  -------  ------- 
 

Consolidated statement of changes in equity

for the year ended 31 December 2016

 
                                                            Share     Capital 
                                                   Share  premium  redemption   Merger    Other  Retained    Total 
                                                 capital  account     reserve  reserve  reserve  earnings   equity 
                                                 GBP'000  GBP'000     GBP'000  GBP'000  GBP'000   GBP'000  GBP'000 
-------------------------------------  -----------------  -------  ----------  -------  -------  --------  ------- 
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 
 year                                                  -        -           -        -        -    12,269   12,269 
Other comprehensive (expense)/income: 
- exchange adjustments                                 -        -           -        -  (1,168)         -  (1,168) 
- actuarial loss on pension 
 schemes                                               -        -           -        -        -     (243)    (243) 
- net movement on deferred 
 tax relating to pension 
 asset                                                 -        -           -        -        -        86       86 
-------------------------------------  -----------------  -------  ----------  -------  -------  --------  ------- 
Total comprehensive income 
 for the year                                          -        -           -        -  (1,168)    12,112   10,944 
-------------------------------------  -----------------  -------  ----------  -------  -------  --------  ------- 
Contributions by and 
 distributions to owners 
 of the Company: 
 - dividends                                           -        -           -        -        -   (8,337)  (8,337) 
-------------------------------------  -----------------  -------  ----------  -------  -------  --------  ------- 
Total contributions by 
 and distributions to 
 owners of the Company                                 -        -           -        -        -   (8,337)  (8,337) 
-------------------------------------  -----------------  -------  ----------  -------  -------  --------  ------- 
At 31 December 2015 and 
 1 January 2016                                      123      344           1    2,033    2,590    82,932   88,023 
-------------------------------------  -----------------  -------  ----------  -------  -------  --------  ------- 
Total comprehensive income 
 for the year 
Profit for the financial 
 year                                                  -        -           -        -        -    13,783   13,783 
Other comprehensive income/(expense): 
- exchange adjustments                                 -        -           -        -    4,441         -    4,441 
- actuarial gain on pension 
 schemes                                               -        -           -        -        -        63       63 
- net movement on deferred 
 tax relating to pension 
 asset                                                 -        -           -        -        -      (31)     (31) 
-------------------------------------  -----------------  -------  ----------  -------  -------  --------  ------- 
Total comprehensive income 
 for the year                                          -        -           -        -    4,441    13,815   18,256 
-------------------------------------  -----------------  -------  ----------  -------  -------  --------  ------- 
Contributions by and 
 distributions to owners 
 of the Company: 
 - dividends                                           -        -           -        -        -   (9,808)  (9,808) 
- release of accrual 
 for unclaimed dividends                               -        -           -        -        -        82       82 
-------------------------------------  -----------------  -------  ----------  -------  -------  --------  ------- 
Total contributions by 
 and distributions to 
 owners of the Company                                 -        -           -        -        -   (9,726)  (9,726) 
-------------------------------------  -----------------  -------  ----------  -------  -------  --------  ------- 
At 31 December 2016                                  123      344           1    2,033    7,031    87,021   96,553 
-------------------------------------  -----------------  -------  ----------  -------  -------  --------  ------- 
 
 

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 2016

 
                                             2016      2015 
                                          GBP'000   GBP'000 
--------------------------------------   --------  -------- 
Assets 
Non-current assets 
Property, plant and equipment              10,937     9,789 
Intangible assets                          62,749    60,594 
Deferred tax asset                            919       690 
Retirement benefit surplus                  3,574     3,196 
---------------------------------------  --------  -------- 
                                           78,179    74,269 
 --------------------------------------  --------  -------- 
Current assets 
Inventories                                11,095     9,689 
Trade and other receivables                23,138    19,901 
Cash and cash equivalents                  22,602    19,736 
---------------------------------------  --------  -------- 
                                           56,835    49,326 
 --------------------------------------  --------  -------- 
Total assets                              135,014   123,595 
---------------------------------------  --------  -------- 
Liabilities 
Current liabilities 
Trade and other payables                 (19,344)  (16,666) 
Income tax liabilities                    (1,180)   (1,335) 
Borrowings                                (1,870)   (1,679) 
Provision for liabilities and charges        (35)      (35) 
---------------------------------------  --------  -------- 
                                         (22,429)  (19,715) 
 --------------------------------------  --------  -------- 
Non-current liabilities 
Trade and other payables                    (957)     (669) 
Borrowings                               (10,789)  (11,417) 
Derivative financial instruments            (172)     (190) 
Deferred tax liabilities                  (1,705)   (1,696) 
Retirement benefit obligations            (2,279)   (1,684) 
Provision for liabilities and charges       (130)     (201) 
---------------------------------------  --------  -------- 
                                         (16,032)  (15,857) 
 --------------------------------------  --------  -------- 
Total liabilities                        (38,461)  (35,572) 
---------------------------------------  --------  -------- 
Net assets                                 96,553    88,023 
---------------------------------------  --------  -------- 
Shareholders' equity 
Ordinary shares                               123       123 
Share premium                                 344       344 
Capital redemption reserve                      1         1 
Merger reserve                              2,033     2,033 
Other reserves                              7,031     2,590 
Retained earnings                          87,021    82,932 
---------------------------------------  --------  -------- 
Total shareholders' equity                 96,553    88,023 
---------------------------------------  --------  -------- 
 
 

Consolidated statement of cash flow

for the year ended 31 December 2016

 
                                                    2016      2015 
                                                 GBP'000   GBP'000 
---------------------------------------------   --------  -------- 
Cash flows from operating activities 
Cash generated from operations                    26,059    20,215 
Interest paid                                      (408)     (425) 
Income tax paid                                  (7,213)   (5,889) 
----------------------------------------------  --------  -------- 
Net cash generated from operating activities      18,438    13,901 
----------------------------------------------  --------  -------- 
Cash flows from investing activities 
Acquisition of subsidiary undertakings 
 (net of cash acquired)                          (2,222)   (1,301) 
Purchases of property, plant and equipment       (2,774)   (2,363) 
Proceeds from sale of property, plant and 
 equipment                                           323       236 
Purchases of intangible assets                   (1,662)     (974) 
Interest received                                     43        27 
----------------------------------------------  --------  -------- 
Net cash used in investing activities            (6,292)   (4,375) 
----------------------------------------------  --------  -------- 
Cash flows from financing activities 
Repayments of borrowings                         (1,819)   (1,663) 
Dividends paid to Company's shareholders         (9,726)   (8,337) 
----------------------------------------------  --------  -------- 
Net cash used in financing activities           (11,545)  (10,000) 
----------------------------------------------  --------  -------- 
Effects of exchange rates on cash and cash 
 equivalents                                       2,265     (768) 
----------------------------------------------  --------  -------- 
Net increase/(decrease) in cash in the 
 year                                              2,866   (1,242) 
Cash and cash equivalents at the beginning 
 of the year                                      19,736    20,978 
----------------------------------------------  --------  -------- 
Cash and cash equivalents at end of the 
 year                                             22,602    19,736 
----------------------------------------------  --------  -------- 
 

Notes to the financial statements

for the year ended 31 December 2016

1 Earnings per share

The calculation of basic earnings per ordinary share ("EPS") is based on the profit on ordinary activities after taxation of GBP13,783,000 (2015: GBP12,269,000) and on 12,261,477 (2015: 12,261,477) 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.

 
                                           2016            2015 
                                      --------------  -------------- 
                                      GBP'000  Pence  GBP'000  Pence 
------------------------------------  -------  -----  -------  ----- 
Profit on ordinary activities after 
 taxation                              13,783  112.4   12,269  100.1 
------------------------------------  -------  -----  -------  ----- 
 

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 2016 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 2015 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 2016 and 31 December 2015 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 11 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       Tel: 01422 372 852 
  Company Secretary 
 
 WH Ireland Limited 
 Chris Fielding        Tel: 0207 220 1666 
 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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April 27, 2017 02:00 ET (06:00 GMT)

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