Final Results

London Securities PLC 24 April 2002 LONDON SECURITIES PLC Preliminary results for the year ended 31 December 2001 It gives me great pleasure to be able to report that our Group has achieved excellent results in the 2001 financial year. Financial highlights include: • Turnover increased by 19% to £45.0million • Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 34% to £12.8million • Adjusted earnings per share increased by 70% to 49.5p • Net gearing reduced from 40.7% at 31 December 2000 to 20.7% • Dividend increased by 83% from 3p to 5.5p TRADING REVIEW The above financial highlights confirm the success of the business review performed during our budgeting process as outlined in last year's Annual Report. Corporate initiatives applied throughout the Group, together with improvements specific to individual operations, have contributed towards this excellent improvement. The newly designed foam extinguisher has proved extremely popular with customers in all countries and has contributed greatly to increased sales. A concentrated effort to focus on ancillary sales has significantly improved revenue. The Group's Nu-Swift UK operations have shown improved profits benefiting from investment in prior years in rental activities. Costs have been stringently controlled with inefficiencies being reduced. In Belgium, re-training and re-organisation of the sales and service teams has increased profits as has the increased focus on the development of new product lines. Dutch operations have benefited from improved management which has led to a better service being offered to customers and in turn has increased sales. In addition, sales have benefited from increased customer awareness of the importance of fire protection, following the serious fire that occurred in Voldendam on New Year's Eve last year. Profits in Austria and Switzerland are marginally improved from 2000 due to the strengthening of the management team. FUTURE PROSPECTS The outlook for 2002 is optimistic. On the service side, our objective is to provide a greater range of fire protection services including improvements to the fire training, fire alarms and risk assessment services currently offered. In addition to organic growth, it remains a principal aim of the Company 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. The Group is actively trying to obtain ISO 14001, the new environmental standard accreditation as evidence of our long-term commitment to the environment. MANAGEMENT AND STAFF 2001 was a year in which the staff excelled and, on your behalf, I would like to express thanks and appreciation for their contribution. DIVIDEND A final dividend of 4p (2000 : 3p) per share is proposed, payable on 14 June 2002 to shareholders on the register on 17 May 2002. An interim dividend of 1.5p per ordinary share (2000 : nil) was paid in November 2001, making a total dividend for the year of 5.5p (2000: 3p) per share. ANNUAL GENERAL MEETING The Annual General Meeting will be held at the Grosvenor House Hotel, Park Lane, London W1 on 30th May 2002. J.G. MURRAY Chairman Consolidated Profit & Loss Account for the year ended 31 December 2001 Year ended 31 Year ended 31 Notes December 2001 December 2000 £'000 £'000 Turnover 45,005 37,729 Cost of sales (6,756) (5,518) Gross profit 38,249 32,211 Distribution costs (17,357) (15,782) Administrative expenses (12,348) (11,097) Operating profit 8,544 5,332 EBITDA** 12,839 9,545 Depreciation (1,637) (1,573) Amortisation of goodwill (2,658) (2,640) Operating profit 8,544 5,332 Income from fixed asset investments 93 96 Net interest payable (983) (1,508) Exchange gain/(loss) on foreign currency 75 (56) Profit on ordinary activities before taxation 7,729 3,864 Taxation (3,205) (608) Profit on ordinary activities after taxation 4,524 3,256 Dividends (797) (435) Retained profit 3,727 2,821 Basic earnings per ordinary share 1 31.2p 22.3p Adjusted earnings per ordinary share 1 49.5p 29.2p Dividend per ordinary share 5.5p 3.0p All of the above results arose from continuing operations ** Earnings before interest, taxation, depreciation and amortisation Consolidated Balance Sheet as at 31 December 2001 2001 2000 £'000 £'000 Fixed assets Intangible assets 47,351 50,101 Tangible assets 6,068 5,838 Investments 70 70 53,489 56,009 Current assets Stocks 2,882 2,620 Debtors 9,457 9,672 Cash at bank and in hand 7,292 3,310 19,631 15,602 Creditors: amounts falling due within one year Finance debt (3,090) (3,216) Other creditors (11,731) (10,218) (14,821) (13,344) Net current assets 4,810 2,258 Total assets less current liabilities 58,299 58,267 Creditors: amounts falling due after more than one year Finance debt (12,848) (16,225) Other creditors - (146) (12,848) (16,371) Provisions for liabilities and charges (1,657) (1,421) Net assets 43,794 40,475 Capital and reserves Called up share capital 1,449 1,455 Share premium 27,476 27,476 Capital redemption reserve 115 109 Merger reserve 2,033 2,033 Profit and loss account 12,721 9,402 Total equity shareholders' funds 43,794 40,475 Consolidated Cash flow Statement for the year ended 31 December 2001 Year ended 31 Year ended 31 December 2001 December 2000 £'000 £'000 Net cash inflow from operating activities 11,803 7,900 Return on investments and servicing of finance Interest received 366 114 Interest paid (1,227) (1,486) Dividends received 93 96 Net cash outflow from return on investments and servicing of finance (786) (1,276) Taxation Corporation tax paid (612) (1,845) Capital expenditure Payments to acquire intangible fixed assets (66) - Payments to acquire tangible fixed assets (2,160) (1,776) Receipts from sales of tangible fixed assets 212 258 Net cash outflow for capital expenditure (2,014) (1,518) Acquisitions and disposals Payments to acquire subsidiary undertakings - (307) Equity dividends paid to shareholders (652) (102) Net cash inflow before use of liquid resources and financing 7,757 2,852 Financing Purchase of own shares (338) (214) New long term loans - 184 Repayment of long term loans (3,437) (3,145) Net cash outflow from financing (3,775) (3,175) Increase/(decrease) in cash and equivalents 3,982 (323) NOTES 1 Earnings per Share The calculation of basic earnings per ordinary share is based on the profit on ordinary activities after taxation of £4,524,000 (2000: £3,256,000) and on 14,504,217 (2000: 14,579,007) ordinary shares, being the weighted average number of ordinary shares in issue during the period. The calculation of adjusted earnings per ordinary share is based on a weighted average of 14,504,217 (2000: 14,579,007) ordinary shares in issue prior to 31 December 2001 and on adjusted earnings which comprise: 2001 2000 £'000 pence £'000 pence Profit on ordinary activities after taxation 4,524 31.2 3,256 22.3 Eliminate effect of: Exceptional tax credit in respect of prior years - - (1,633) (11.2) Amortisation of goodwill 2,658 18.3 2,640 18.1 Adjusted profits on ordinary activities after taxation 7,182 49.5 4,263 29.2 2 The results for the year ended 31 December 2001 have been abridged from the full accounts of the Group for that year which received an unqualified auditors' report and which have not yet been delivered to the Registrar of Companies. The results for the year ended 31 December 2000 have been extracted from the Group's statutory accounts which received an unqualified auditors' report and have been filed with the Registrar of Companies. 3 The preceding statements have been prepared in accordance with applicable accounting standards on a basis which is consistent with that applied in previous periods. Enquiries: London Securities Plc Richard Pollard, Secretary 01422 372852 This information is provided by RNS The company news service from the London Stock Exchange

Companies

London Security (LSC)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today