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| 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 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Fire Protection | 188.9M | 20.2M | 1.6478 | 18.51 | 373.95M |
From Apr 2019 to Apr 2024
TIDMLSC
RNS Number : 2173R
London Security PLC
20 September 2017
Chairman's statement
Financial highlights
Revenue GBP60.6m
2016: GBP56.3m
Operating profit GBP9.5m
2016: GBP9.3m
Earnings per share 51.5p
2016: 49.6p
TRADING
The financial highlights illustrate that the Group's revenue increased by GBP4.3 million (7.6%) to GBP60.6 million. However, these results are impacted by the movement in the Euro to Sterling average exchange rate over the period, which has decreased from 1.28 to 1.16. This movement in exchange rates had a positive effect of GBP4.5 million on reported turnover. If the 2017 results had been translated at 2016 rates, revenue would have been GBP56.1 million instead of GBP60.6 million, an adjusted decrease of 0.4%. The revenue movement can be attributed to business acquisitions, fluctuations in service patterns and increased competition in our core market.
Operating profit increased by GBP0.2 million (2.2%) to GBP9.5 million. Adjusting for the change in exchange rates on the same basis as above, operating profit would have been GBP8.7 million instead of GBP9.5 million (an adjusted decrease of 6.5%). Operating profit as a percentage of turnover has fallen from 16.5% to 15.7% as costs including amortisation of service contracts and brands have increased.
ACQUISITIONS
In the six months to the end of June, the Group has acquired a total of six well established businesses at a cost of GBP1.1 million (2016: seven businesses at a cost of GBP1.7 million). The integration of these businesses into the Group has, so far, been successful and results are in line with expectations. 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.
FINANCING
In May 2013 the Group entered into a new GBP19.7 million facility until 2018. This facility reaches maturity in May 2018 and the outstanding portion of this facility, GBP11.9 million is therefore disclosed as short term borrowings in this Interim Statement. Negotiations are in progress and your Board is confident of renewing this facility prior to maturity in 2018.
PROSPECTS
The fire security market is experiencing increased competition and downward pressure on prices. Our strategy is to continue to concentrate on the highest levels of customer service to mitigate this. 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.
DIVIDS
A final dividend in respect of 2016 of GBP0.40 per ordinary share was paid to shareholders on 5 July 2017.
J.G. Murray
Chairman
19 September 2017
Consolidated income statement
for the six months ended 30 June 2017
Hot Features
Premium
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
Note GBP'000 GBP'000 GBP'000
---------------------------------------------------------------- ---------- ----------- ----------- ------------
Revenue 60,631 56,295 114,845
Cost of sales (12,213) (12,053) (23,638)
---------------------------------------------------------------- ---------- ----------- ----------- ------------
Gross profit 48,418 44,242 91,207
Distribution costs (23,682) (20,765) (42,191)
Administrative expenses (15,250) (14,152) (28,154)
---------------------------------------------------------------- ---------- ----------- ----------- ------------
Operating profit 9,486 9,325 20,862
---------------------------------------------------------------- ---------- ----------- ----------- ------------
EBITDA* 12,382 11,926 26,321
Depreciation and amortisation (2,896) (2,601) (5,459)
---------------------------------------------------------------- ---------- ----------- ----------- ------------
Operating profit 9,486 9,325 20,862
---------------------------------------------------------------- ---------- ----------- ----------- ------------
Finance income 87 19 176
Finance costs (187) (258) (433)
---------------------------------------------------------------- ---------- ----------- ----------- ------------
Finance costs - net (100) (239) (257)
---------------------------------------------------------------- ---------- ----------- ----------- ------------
Profit before income tax 9,386 9,086 20,605
Income tax expense (3,068) (2,999) (6,822)
---------------------------------------------------------------- ---------- ----------- ----------- ------------
Profit for the period attributable to equity shareholders of the Company 6,318 6,087 13,783
---------------------------------------------------------------------------- ----------- ----------- ------------
Earnings per share
Basic and diluted 3 51.5p 49.6p 112.4p
Dividends
Dividends paid per share Nil Nil 80.0p
---------------------------------------------------------------- ---------- ----------- ----------- ------------
-- Earnings before interest, taxation, depreciation, amortisation and impairment charges.
The above are all as a result of continuing operations.
Consolidated statement of comprehensive income
for the six months ended 30 June 2017
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
------------------------------------------------------------------------------ ----------- ----------- ------------
Profit for the financial period 6,318 6,087 13,783
------------------------------------------------------------------------------ ----------- ----------- ------------
Other comprehensive income/(expense):
Items that will not be reclassified subsequently to profit or loss:
- currency translation differences on foreign operation consolidation, net of
tax 836 3,503 4,441
- actuarial gain recognised in the Nu-Swift pension scheme - - 263
- movement on deferred tax relating to the Nu-Swift pension scheme - - (92)
- actuarial loss recognised in the Ansul pension scheme - - (200)
- movement on deferred tax relating to the Ansul pension scheme - - 61
------------------------------------------------------------------------------ ----------- ----------- ------------
Other comprehensive income for the period, net of tax 836 3,503 4,473
------------------------------------------------------------------------------ ----------- ----------- ------------
Total comprehensive income for the period 7,154 9,590 18,256
------------------------------------------------------------------------------ ----------- ----------- ------------
Consolidated statement of changes in equity
for the six months ended 30 June 2017
Profit
Share Share Capital Merger Other and loss
capital premium redemption reserve reserve account Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
At 1 January 2016 123 344 1 2,033 2,590 82,932 88,023
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Comprehensive income for the period:
- profit for the period - - - - - 6,087 6,087
- exchange adjustments - - - - 3,503 - 3,503
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Total comprehensive income for the period - - - - 3,503 6,087 9,590
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
At 30 June 2016 123 344 1 2,033 6,093 89,019 97,613
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Comprehensive income for the period:
- profit for the period - - - - - 7,696 7,696
- exchange adjustments - - - - 938 - 938
- actuarial gain on pension schemes - - - - - 63 63
- movement on deferred tax relating to
pension schemes - - - - - (31) (31)
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Total comprehensive income for the period - - - - 938 7,728 8,666
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Contributions by and distributions to
owners of the Company:
- dividends - - - - - (9,726) (9,726)
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
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
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Comprehensive income for the period:
- profit for the period - - - - - 6,318 6,318
- exchange adjustments - - - - 836 - 836
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Total comprehensive income for the period - - - - 836 6,318 7,154
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
At 30 June 2017 123 344 1 2,033 7,867 93,339 103,707
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Consolidated statement of financial position
as at 30 June 2017
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
--------------------------------------- ---------- ---------- ------------
Assets
Non-current assets
Property, plant and equipment 11,301 10,596 10,937
Intangible assets 62,625 62,358 62,749
Deferred tax asset 948 787 919
Retirement benefit surplus 3,574 3,196 3,574
--------------------------------------- ---------- ---------- ------------
78,448 76,937 78,179
--------------------------------------- ---------- ---------- ------------
Current assets
Inventories 12,408 11,166 11,095
Trade and other receivables 23,687 23,707 23,138
Cash and cash equivalents 27,542 25,997 22,602
--------------------------------------- ---------- ---------- ------------
63,637 60,870 56,835
--------------------------------------- ---------- ---------- ------------
Total assets 142,085 137,807 135,014
--------------------------------------- ---------- ---------- ------------
Liabilities
Current liabilities
Trade and other payables (20,557) (21,168) (19,344)
Income tax liabilities (633) (839) (1,180)
Borrowings (11,940) (1,836) (1,870)
Derivative financial instruments (115) - -
Provision for liabilities and charges (35) (35) (35)
--------------------------------------- ---------- ---------- ------------
(33,280) (23,878) (22,429)
--------------------------------------- ---------- ---------- ------------
Non-current liabilities
Trade and other payables (960) (803) (957)
Borrowings - (11,519) (10,789)
Derivative financial instruments - (244) (172)
Deferred income tax liabilities (1,633) (1,649) (1,705)
Retirement benefit obligations (2,339) (1,909) (2,279)
Provision for liabilities and charges (168) (192) (130)
--------------------------------------- ---------- ---------- ------------
(5,098) (16,316) (16,032)
--------------------------------------- ---------- ---------- ------------
Total liabilities (38,378) (40,194) (38,461)
--------------------------------------- ---------- ---------- ------------
Net assets 103,707 97,613 96,553
--------------------------------------- ---------- ---------- ------------
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 7,867 6,093 7,031
Retained earnings 93,339 89,019 87,021
--------------------------------------- ---------- ---------- ------------
Total shareholders' equity 103,707 97,613 96,553
--------------------------------------- ---------- ---------- ------------
Consolidated statement of cash flow
for the six months ended 30 June 2017
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
---------------------------------------------------------- ----------- ----------- ------------
Cash flows from operating activities
Cash generated from operations 12,673 14,436 26,059
Interest paid (187) (204) (408)
Income tax paid (4,310) (4,391) (7,213)
---------------------------------------------------------- ----------- ----------- ------------
Net cash generated from operating activities 8,176 9,841 18,438
---------------------------------------------------------- ----------- ----------- ------------
Cash flows from investing activities
Acquisition of subsidiary undertakings (785) (1,324) (2,222)
Purchases of property, plant and equipment (1,590) (1,333) (2,774) Proceeds from sale of property, plant and equipment 162 168 323 Purchases of intangible assets (659) (2,024) (1,662) Interest received 30 19 43 ---------------------------------------------------------- ----------- ----------- ------------ Net cash used in investing activities (2,842) (4,494) (6,292) ---------------------------------------------------------- ----------- ----------- ------------ Cash flows from financing activities Repayments of borrowings (850) (869) (1,819) Dividends paid to Company's shareholders - - (9,726) ---------------------------------------------------------- ----------- ----------- ------------ Net cash used in financing activities (850) (869) (11,545) ---------------------------------------------------------- ----------- ----------- ------------ Effects of exchange rates on cash and cash equivalents 456 1,783 2,265 ---------------------------------------------------------- ----------- ----------- ------------ Net increase in cash in the period 4,940 6,261 2,866 Cash and cash equivalents at the beginning of the period 22,602 19,736 19,736 ---------------------------------------------------------- ----------- ----------- ------------ Cash and cash equivalents at the end of the period 27,542 25,997 22,602 ---------------------------------------------------------- ----------- ----------- ------------
Notes to the financial statements
for the six months ended 30 June 2017
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 2017 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 2016. 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 2016 have been extracted from the statutory accounts for the year ended 31 December 2016, 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 GBP6,318,000 (2016: GBP6,087,000) and on 12,261,477 (2016: 12,261,477) 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
2017 2016 2016
GBP'000 GBP'000 GBP'000
---------------------------------------------- ----------- ----------- ------------
Profit on ordinary activities after taxation 6,318 6,087 13,783
---------------------------------------------- ----------- ----------- ------------
Basic earnings per ordinary share 51.5p 49.6p 112.4p
---------------------------------------------- ----------- ----------- ------------
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 2017. In accordance with IAS 19 such a valuation will be prepared for the purposes of the Group's Annual Report and Accounts 2017.
For further information, please contact:
London Security plc
Richard Pollard
Company Secretary Tel : 01422 372852
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
IR DKLFFDKFBBBD
(END) Dow Jones Newswires
September 20, 2017 02:00 ET (06:00 GMT)
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