TIDMLSC
RNS Number : 5069Y
London Security PLC
09 May 2019
London Security plc
Final Results for the Year Ended 31 December 2018
Chairman's statement
J.G. Murray, Chairman
Financial highlights
Financial highlights of the audited results for the year ended
31 December 2018 compared with the year ended 31 December 2017 are
as follows:
-- revenue of GBP137.7 million (2017: GBP125.9 million);
-- EBITDA of GBP29.6 million (2017: GBP27.9 million);
-- operating profit of GBP23.2 million (2017: GBP21.7 million);
-- profit for the year of GBP16.2 million (2017: GBP14.3 million); and
-- a dividend per share of GBP0.80 (2017: GBP0.80).
Trading review
The financial highlights illustrate that the Group's revenue
increased by GBP11.8 million (9.4%) to GBP137.7 million and
operating profit increased by GBP1.5 million (6.9%) to GBP23.2
million. These results reflect:
-- the positive impact of acquisitions in 2017 and 2018 in the
United Kingdom, Austria and Denmark;
-- improved performance from our service business in continental Europe;
-- continued improvement from newer service offerings (e.g.
emergency lights and passive fire protection); and
-- the movement in the Euro to Sterling average exchange rate,
which had a favourable effect of GBP1.0 million on reported revenue
and GBP0.2 million on operating profit.
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
acquired four established fire protection businesses and
strengthened its position in the passive fire protection market
with the acquisition of Amberfire Limited. The Group has grown its
presence in the Netherlands, Belgium, Austria and the UK with the
acquisition of service contracts from smaller well-established
businesses for integration into the Group's existing subsidiaries.
In addition, with the acquisition of Linde Brandmateriel Aps the
Group has expanded its business into Denmark.
Management and staff
2018 was a year in which the staff performed well and, on behalf
of the shareholders, 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.
The Group was saddened by the sad loss of Michael Gailer
following a short illness and is grateful to him for his 19 years
of service.
Dividends
A final dividend in respect of 2017 of GBP0.40 per ordinary
share was paid to shareholders on 5 July 2018. An interim dividend
in respect of 2018 of GBP0.40 per ordinary share was paid to
shareholders on 30 November 2018. The Board is recommending the
payment of a final dividend in respect of 2018 of GBP0.40 per
ordinary share to be paid on 5 July 2019 to shareholders on the
register on 7 June 2019. The shares will be marked ex-dividend on 6
June 2019.
Future prospects
The Group will continue to grow and consolidate the fire
protection industry with the finest customer care.
Annual General Meeting
The Annual General Meeting will be held at 2 Eaton Gate, London
SW1W 9BJ, on 18 June 2018 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
8 May 2019
Consolidated income statement
for the year ended 31 December 2018
2018 2017
Note GBP'000 GBP'000
----------------------------------- ---- -------- --------
Revenue 137,711 125,873
Cost of sales (31,780) (26,626)
----------------------------------- ---- -------- --------
Gross profit 105,931 99,247
Distribution costs (50,593) (47,751)
Administrative expenses (32,163) (29,757)
----------------------------------- ---- -------- --------
Operating profit 23,175 21,739
----------------------------------- ---- -------- --------
EBITDA(*) 29,557 27,934
Depreciation and amortisation (6,382) (6,195)
----------------------------------- ---- -------- --------
Operating profit 23,175 21,739
----------------------------------- ---- -------- --------
Finance income 131 237
Finance costs (171) (392)
----------------------------------- ---- -------- --------
Finance costs - net (40) (155)
----------------------------------- ---- -------- --------
Profit before income tax 23,135 21,584
Income tax expense (6,945) (7,239)
----------------------------------- ---- -------- --------
Profit for the year 16,190 14,345
----------------------------------- ---- -------- --------
Profit is attributable to:
Equity shareholders of the Company 16,077 14,310
Non-controlling interest 113 35
----------------------------------- ---- -------- --------
16,190 14,345
----------------------------------- ---- -------- --------
Earnings per share
Basic and diluted 1 131.1p 116.7p
----------------------------------- ---- -------- --------
* 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 2018
2018 2017
GBP'000 GBP'000
-------------------------------------------------------- ------- -------
Profit for the financial year 16,190 14,345
--------------------------------------------------------- ------- -------
Other comprehensive income/(expense):
Items that may be reclassified subsequently to profit
or loss:
- currency translation differences on foreign currency
net investments 361 1,439
Items that will not be reclassified subsequently to
profit or loss:
- actuarial gain recognised in the Nu-Swift Pension
Scheme 16 734
- movement on deferred tax relating to Nu-Swift Pension
Scheme surplus (6) (257)
- actuarial (loss)/gain recognised in the Ansul Pension
Scheme (145) 721
- movement on deferred tax relating to Ansul Pension
Scheme deficit 36 (313)
--------------------------------------------------------- ------- -------
Other comprehensive income for the year, net of tax 262 2,324
--------------------------------------------------------- ------- -------
Total comprehensive income for the year 16,452 16,669
--------------------------------------------------------- ------- -------
Consolidated statement of changes in equity
for the year ended 31 December 2018
Share Capital
Share premium redemption Merger Other Retained Non-controlling Total
capital account reserve reserve reserve earnings interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- ------- ------- ---------- ------- ------- -------- --------------- -------
At 1 January 2017 123 344 1 2,033 7,031 87,021 - 96,553
---------------------------------- ------- ------- ---------- ------- ------- -------- --------------- -------
Total comprehensive income for the
year
Profit for the financial year - - - - - 14,310 35 14,345
Other comprehensive
income/(expense):
- exchange adjustments - - - - 1,439 - - 1,439
- actuarial gain on pension
schemes - - - - - 1,455 - 1,455
- net movement on deferred tax
relating
to pension asset - - - - - (570) - (570)
---------------------------------- ------- ------- ---------- ------- ------- -------- --------------- -------
Total comprehensive income for the
year - - - - 1,439 15,195 35 16,669
---------------------------------- ------- ------- ---------- ------- ------- -------- --------------- -------
Contributions by and distributions
to owners of the Company:
- dividends - - - - - (9,808) - (9,808)
Contribution from non-controlling
interest on business combination - - - - - - 154 154
---------------------------------- ------- ------- ---------- ------- ------- -------- --------------- -------
At 31 December 2017 and 1 January
2018 123 344 1 2,033 8,470 92,408 189 103,568
---------------------------------- ------- ------- ---------- ------- ------- -------- --------------- -------
Total comprehensive income for the
year
Profit for the financial year - - - - - 16,077 113 16,190
Other comprehensive
income/(expense):
- exchange adjustments - - - - 361 - - 361
- actuarial loss on pension
schemes - - - - - (129) - (129)
- net movement on deferred tax
relating
to pension asset - - - - - 30 - 30
---------------------------------- ------- ------- ---------- ------- ------- -------- --------------- -------
Total comprehensive income for the
year - - - - 361 15,978 113 16,452
---------------------------------- ------- ------- ---------- ------- ------- -------- --------------- -------
Contributions by and distributions
to owners of the Company:
- dividends - - - - - (9,809) - (9,809)
---------------------------------- ------- ------- ---------- ------- ------- -------- --------------- -------
At 31 December 2018 123 344 1 2,033 8,831 98,577 302 110,211
---------------------------------- ------- ------- ---------- ------- ------- -------- --------------- -------
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 2018
2018 2017
GBP'000 GBP'000
---------------------------------------------------- -------- --------
Assets
Non-current assets
Property, plant and equipment 12,077 11,589
Intangible assets 63,695 61,724
Deferred tax asset 811 589
Retirement benefit surplus 4,430 4,397
----------------------------------------------------- -------- --------
81,013 78,299
---------------------------------------------------- -------- --------
Current assets
Inventories 13,293 11,749
Trade and other receivables 28,732 26,063
Cash and cash equivalents 26,110 24,652
----------------------------------------------------- -------- --------
68,135 62,464
---------------------------------------------------- -------- --------
Total assets 149,148 140,763
----------------------------------------------------- -------- --------
Liabilities
Current liabilities
Trade and other payables (22,713) (19,576)
Income tax liabilities (1,731) (1,699)
Borrowings (2,125) (11,125)
Derivative financial instruments - (54)
Provision for liabilities and charges (5) -
----------------------------------------------------- -------- --------
(26,574) (32,454)
---------------------------------------------------- -------- --------
Non-current liabilities
Trade and other payables (922) (1,003)
Borrowings (7,441) -
Derivative financial instruments (41) -
Deferred tax liabilities (1,898) (1,830)
Retirement benefit obligations (1,880) (1,721)
Provision for liabilities and charges (181) (187)
----------------------------------------------------- -------- --------
(12,363) (4,741)
---------------------------------------------------- -------- --------
Total liabilities (38,937) (37,195)
----------------------------------------------------- -------- --------
Net assets 110,211 103,568
----------------------------------------------------- -------- --------
Shareholders' equity
Ordinary shares 123 123
Share premium 344 344
Capital redemption reserve 1 1
Merger reserve 2,033 2,033
Other reserves 8,831 8,470
Retained earnings 98,577 92,408
----------------------------------------------------- -------- --------
Equity attributable to owners of the Parent Company 109,909 103,379
Non-controlling interest 302 189
----------------------------------------------------- -------- --------
Total equity 110,211 103,568
----------------------------------------------------- -------- --------
Consolidated statement of cash flows
for the year ended 31 December 2018
2018 2017
GBP'000 GBP'000
-------------------------------------------------------- -------- --------
Cash flows from operating activities
Cash generated from operations 28,385 25,182
Interest paid (147) (368)
Income tax paid (7,393) (7,249)
--------------------------------------------------------- -------- --------
Net cash generated from operating activities 20,845 17,565
--------------------------------------------------------- -------- --------
Cash flows from investing activities
Acquisition of subsidiary undertakings (net of cash
acquired) (4,274) (1,220)
Purchases of property, plant and equipment (3,551) (3,384)
Proceeds from the sale of property, plant and equipment 398 349
Purchases of intangible assets (746) (600)
Interest received 12 30
--------------------------------------------------------- -------- --------
Net cash used in investing activities (8,161) (4,825)
--------------------------------------------------------- -------- --------
Cash flows from financing activities
Repayments of borrowings (1,614) (1,809)
Dividends paid to Company's shareholders (9,809) (9,808)
Contribution from non-controlling interest - 154
--------------------------------------------------------- -------- --------
Net cash used in financing activities (11,423) (11,463)
--------------------------------------------------------- -------- --------
Effects of exchange rates on cash and cash equivalents 197 773
--------------------------------------------------------- -------- --------
Net increase in cash in the year 1,458 2,050
Cash and cash equivalents at the beginning of the year 24,652 22,602
--------------------------------------------------------- -------- --------
Cash and cash equivalents at the end of the year 26,110 24,652
--------------------------------------------------------- -------- --------
Notes to the financial statements
for the year ended 31 December 2018
1 Earnings per share
The calculation of basic earnings per ordinary share ("EPS") is
based on the profit on ordinary activities after taxation of
GBP16,077,000 (2017: GBP14,310,000) and on 12,261,477 (2017:
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.
2018 2017
-------------- --------------
GBP'000 Pence GBP'000 Pence
--------------------------------------------- ------- ----- ------- -----
Profit on ordinary activities after taxation 16,077 131.1 14,310 116.7
--------------------------------------------- ------- ----- ------- -----
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 2018 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 2017 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 2018 and 31 December 2017 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 20 May 2019.
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR UGUGAAUPBURB
(END) Dow Jones Newswires
May 09, 2019 04:54 ET (08:54 GMT)
London Security (LSE:LSC)
Historical Stock Chart
From Mar 2024 to Apr 2024
London Security (LSE:LSC)
Historical Stock Chart
From Apr 2023 to Apr 2024