TIDMLSC
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 GBP101.2 million (2014: GBP100.9 million);
-- operating profit before depreciation and amortisation of
GBP23.2 million (2014: GBP23.9 million);
-- operating profit of GBP18.5 million (2014: GBP19.7 million);
-- profit before tax of GBP18.2 million (2014: GBP19.0 million);
-- profit after income tax of GBP12.3 million (2014: GBP12.7 million);
-- earnings per share of 100.1p (2014: 103.4p); and
-- a dividend per share of GBP0.68 (2014: GBP0.62).
TRADING REVIEW
The financial highlights illustrate that the Group's revenue
increased by GBP0.3 million (0.3%) to GBP101.2 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 GBP8.7 million
on reported turnover. If the 2015 results had been translated at
2014 rates, revenue would have been GBP109.9 million instead of
GBP101.2 million (increase of 8.9% on prior year).
Operating profit decreased by GBP1.2 million (6.1%) to GBP18.5
million. Adjusting for the change in the exchange rate on the same
basis as above, operating profit would have been GBP20.4 million
instead of GBP18.5 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 GBP0.31 per ordinary
share was paid to shareholders on 8 July 2015. An interim dividend
in respect of 2015 of GBP0.37 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 GBP0.40 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,
5(th) 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 GBP'000 GBP'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
GBP'000 GBP'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 Nu--Swift pension scheme (406) 127
- movement on deferred tax relating to Nu--Swift 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
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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:
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- exchange adjustments - - - - (1,955) - (1,955)
- actuarial loss on pension schemes - - - - - (64) (64)
* net movement on deferred tax relating to pension
asset - - - - - (449) (449)
Total comprehensive income for the year - - - - (1,955) 12,162 10,207
-------------------------------------------------------- -------- -------- ----------- -------- -------- -------- --------
Contributions by and distributions to owners of the
Company:
- dividends - - - - - (7,602) (7,602)
Total contributions by and distributions to owners of
the Company - - - - - (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 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 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
GBP'000 GBP'000
--------------------------------------- --------- ---------
Assets
Non--current 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)
--------------------------------------- --------- ---------
Non--current 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
GBP'000 GBP'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 of
GBP12,269,000 (2014: GBP12,675,000) and on 12,261,477 (2014:
12,261,477) ordinary shares, being the weighted average number of
ordinary shares in issue during the year.
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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.
2015 2014
-------------- --------------
GBP'000 Pence GBP'000 Pence
--------------------------------------------- ------- ----- ------- -----
Profit on ordinary activities after taxation 12,269 100.1 12,675 103.4
--------------------------------------------- ------- ----- ------- -----
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 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 Tel: 01422 372 852
Company Secretary
WH Ireland Limited
Chris Fielding / Liam Gribben Tel: 0207 220 1666
This information is provided by RNS
The company news service from the London Stock Exchange
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