London Security plc
Unaudited Interim Statement for the six months ended 30 June 2021
A leader
in Europe's fire security industry.
Chairman's statement
J.G. Murray, Chairman
FINANCIAL HIGHLIGHTS
- Revenue £82.7m (2020: £67.2m)
- Operating profit £12.3m (2020: £7.6m)
- Earnings per share 75.6p (2020: 39.9p)
Trading
The financial highlights illustrate that the Group's revenue increased by £15.5 million (23.1%) to £82.7 million.
Operating profit increased by £4.7 million (61.8%) to £12.3 million.
The period under review reflects the impact from the coronavirus outbreak, which significantly impacted all the countries in which we operate in quarter one and quarter two of 2020. In 2021 there has largely been a return to normality in our business although some customers remain closed and there are still some restrictions on our operations to help reduce transmission. We must be prepared for further disruption should further waves materialise in any of the countries in which we operate.
Acquisitions
In the six months to the end of June, the Group has made four 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 the upper end of the price spectrum where an adequate return is envisaged by the Board.
Cash and financing
The Group's cash balance as at 30 June 2021 was £43.7 million. This is an increase of £6.2 million on the 31 December 2020 balance of £37.5 million.
In May 2018 the Group entered into a five year multi-currency facility until 2023 comprising £3.15 million and €8.40 million. To limit our exposure to increasing interest rates these loans are subject to interest rate caps of 1.5% LIBOR on the Sterling loan and 0.25% EURIBOR on the Euro loan.
Prospects
As the situation continues, cash management will be a key consideration; 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 prosper from the rebound in the economy as the vaccine programmes gain momentum in 2021.
Dividends
A final dividend in respect of 2020 of £0.40 per ordinary share was paid to shareholders on 9 July 2021.
J.G. Murray
Chairman
27 September 2021
01 London Security plc - Unaudited Interim Statement for the six months ended 30 June 2021
Consolidated income statement
for the six months ended 30 June 2021
Unaudited | Unaudited | Audited | |||
six months | six months | year | |||
ended | ended | ended | |||
30 June | 30 June | 31 December | |||
2021 | 2020 | 2020 | |||
Note | £'000 | £'000 | £'000 | ||
Revenue | 82,739 | 67,164 | 152,723 | ||
Cost of sales | (21,601) | (16,452) | (37,387) | ||
Gross profit | 61,138 | 50,712 | 115,336 | ||
Distribution costs | (30,188) | (26,310) | (56,281) | ||
Administrative expenses | (18,670) | (16,768) | (34,355) | ||
Operating profit | 12,280 | 7,634 | 24,700 | ||
EBITDA* | 16,799 | 11,951 | 33,547 | ||
Depreciation and amortisation | (4,519) | (4,317) | (8,847) | ||
Operating profit | 12,280 | 7,634 | 24,700 | ||
Finance income | 21 | 21 | 78 | ||
Finance costs | (99) | (96) | (201) | ||
Finance costs - net | (78) | (75) | (123) | ||
Profit before income tax | 12,202 | 7,559 | 24,577 | ||
Income tax expense | (2,862) | (2,602) | (6,536) | ||
Profit for the period | 9,340 | 4,957 | 18,041 | ||
Profit is attributable to: | |||||
Equity shareholders of the Company | 9,267 | 4,895 | 17,853 | ||
Non-controlling interest | 73 | 62 | 188 | ||
9,340 | 4,957 | 18,041 | |||
Earnings per share | |||||
Basic and diluted | 3 | 75.6p | 39.9p | 145.6p | |
Dividends | |||||
Dividends paid per share | Nil | Nil | 60.0p | ||
* Earnings before interest, taxation, depreciation, amortisation and impairment charges. The above are all as a result of continuing operations.
Unaudited Interim Statement for the six months ended 30 June 2021 - London Security plc | 02 |
Consolidated statement of comprehensive income
for the six months ended 30 June 2021
Unaudited | Unaudited | Audited | |
six months | six months | year | |
ended | ended | ended | |
30 June | 30 June | 31 December | |
2021 | 2020 | 2020 | |
£'000 | £'000 | £'000 | |
Profit for the financial period | 9,340 | 4,957 | 18,041 |
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 | (2,679) | 3,196 | 2,396 |
- actuarial gain recognised in the Nu-Swift pension scheme | - | - | (4,554) |
- movement on deferred tax relating to the Nu-Swift pension scheme | - | - | 1,594 |
- actuarial loss recognised in the Ansul pension scheme | - | - | (17) |
- movement on deferred tax relating to the Ansul pension scheme | - | - | 5 |
Other comprehensive income for the period, net of tax | (2,679) | 3,196 | (576) |
Total comprehensive income for the period | 6,661 | 8,153 | 17,653 |
03 London Security plc - Unaudited Interim Statement for the six months ended 30 June 2021
Consolidated statement of changes in equity
for the six months ended 30 June 2021
Share | Share | Capital | Merger | Other | Retained | Non-controlling | ||
capital | premium | redemption | reserve | reserve | earnings | interest | Total | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
At 1 January 2020 | 123 | 344 | 1 | 2,033 | 6,442 | 106,882 | 349 | 116,174 |
Comprehensive income for the period: | ||||||||
- profit for the period | - | - | - | - | - | 4,895 | 62 | 4,957 |
- exchange adjustments | - | - | - | - | 3,196 | - | - | 3,196 |
Total comprehensive income for the period | - | - | - | - | 3,196 | 4,895 | 62 | 8,153 |
Distribution to non-controlling interest | - | - | - | - | - | - | (159) | (159) |
At 30 June 2020 | 123 | 344 | 1 | 2,033 | 9,638 | 111,777 | 252 | 124,168 |
Comprehensive income for the period: | ||||||||
- profit for the period | - | - | - | - | - | 12,958 | 126 | 13,084 |
- exchange adjustments | - | - | - | - | (800) | - | - | (800) |
- actuarial loss on pension schemes | - | - | - | - | - | (4,571) | - | (4,571) |
- movement on deferred tax relating to | ||||||||
pension schemes | - | - | - | - | - | 1,599 | - | 1,599 |
Total comprehensive income for the period | - | - | - | - | (800) | 9,986 | 126 | 9,312 |
Contributions by and distributions to | ||||||||
owners of the Company: | ||||||||
- dividends | - | - | - | - | - | (7,356) | - | (7,356) |
Distribution to non-controlling interest | - | - | - | - | - | - | (1) | (1) |
At 31 December 2020 | 123 | 344 | 1 | 2,033 | 8,838 | 114,407 | 377 | 126,123 |
Comprehensive income for the period: | ||||||||
- profit for the period | - | - | - | - | - | 9,267 | 73 | 9,340 |
- exchange adjustments | - | - | - | - | (2,679) | - | - | (2,679) |
Total comprehensive income for the period | - | - | - | - | (2,679) | 9,267 | 73 | 6,661 |
Distribution to non-controlling interest | - | - | - | - | - | - | (28) | (28) |
Reduction in non-controlling interest | - | - | - | - | - | (123) | (103) | (226) |
At 30 June 2021 | 123 | 344 | 1 | 2,033 | 6,159 | 123,551 | 319 | 132,530 |
Unaudited Interim Statement for the six months ended 30 June 2021 - London Security plc | 04 |
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London Security plc published this content on 16 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 September 2021 11:01:03 UTC.