Final Results

London Security PLC 29 April 2003 LONDON SECURITY PLC Preliminary results for the year ended 31 December 2002 I am again able to report that the Group has delivered excellent results in difficult market conditions. Financial highlights are: • Turnover increased by 7% to £48.1million • Operating profit increased by 9% to £9.3million • Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 7% to £13.7million • Net gearing reduced from 21% at 31 December 2001 to 10% • Dividend increased by 27% to 7p per share • £3.5million invested in acquisition of subsidiaries Trading Review The above financial highlights confirm considerable progress made in the year. This is very encouraging as it follows the tremendous growth reported in 2001. The turnover of the subsidiaries in Belgium and Holland continued to grow in 2002. Organic growth in the intake of new service contracts fuelled this increase which was achieved whilst maintaining profit margins. Throughout the Group initiatives have continued to improve levels of customer satisfaction. Future Prospects The outlook for 2003 is cautiously optimistic. On the fire extinguisher 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. Other services such as emergency plans and escape routes will be offered to provide our customers with a one-stop-shop solution for their fire protection requirements. BSI have recommended that Nu-Swift International Limted receive a licence under ISO 14001, the new environmental standard accreditation. As evidence of our long-term commitment to the environment, it is our intention to expand this across our European subsidiaries. Acquisitions 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. In 2002 we have been successful in this objective with the acquisitions of Asco Extinguishers Company Limited and CFP Cavelle Limited in the UK and HUG S.A. in Switzerland. Management and Staff 2002 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 5p (2001: 4p) per share is proposed, payable on 20 June 2003 to shareholders on the register on 23 May 2003. An interim dividend of 2.0p per share (2001: 1.5p) was paid in November 2002, making a total dividend for the year of 7.0p (2001: 5.5p) per share. Annual General Meeting The Annual General Meeting will be held at the Grosvenor House Hotel, Park Lane, London, W.1 on 5 June 2003 at 11.00 a.m.. J.G. MURRAY Chairman Consolidated Profit and Loss Account for the year ended 31 December 2002 Notes Year ended Year ended 31 31 December December 2002 2001 £'000's £'000's Turnover 48,078 45,005 Cost of sales (7,288) (6,756) Gross profit 40,790 38,249 Distribution costs (18,079) (17,357) Administrative expenses (13,433) (12,348) Operating profit 9,278 8,544 EBITDA** 13,694 12,839 Depreciation (1,735) (1,637) Amortisation of goodwill (2,681) (2,658) Operating profit 9,278 8,544 Income from fixed asset investments 111 93 Net interest payable and others (946) (908) Profit on ordinary activities 8,443 7,729 before taxation Taxation (3,840) (3,205) Profit on ordinary activities 4,603 4,524 after taxation Dividends (1,014) (797) Retained profit 3,589 2,821 Basic earnings per ordinary share 31.8p 31.2p Adjusted earnings per ordinary share 50.3p 49.5p Dividend per ordinary share 7.0p 5.5p All of the above results arose from continuing operations. Turnover and operating profit attributable to acquisitions has not been separately disclosed on the face of the profit and loss account on the grounds of materiality. **Earnings Before Interest, Taxation, Depreciation and Amortisation CONSOLIDATED BALANCE SHEET as at 31 December 2002 2002 2001 £'000 £000 Fixed assets Intangible assets 47,128 47,351 Tangible assets 7,363 6,068 Investments 70 70 54,561 53,489 Current assets Stocks 3,425 2,882 Debtors 9,740 9,457 Cash at bank and in hand 10,303 7,292 23,468 19,631 Creditors: amounts falling due within one year Finance debt (3,503) (3,090) Other creditors (13,383) (11,731) (16,886) (14,821) Net current assets 6,582 4,810 Total assets less current liabilities 61,143 58,299 Creditors: amounts falling due after more than one year Finance debt (11,255) (12,848) Provisions for liabilities and charges (1,907) (1,657) Net assets 47,981 43,794 Capital and reserves Called up share capital 1,449 1,449 Share premium 27,476 27,476 Capital redemption reserve 115 115 Merger reserve 2,033 2,033 Profit and loss account 16,908 12,721 Total equity shareholders' funds 47,981 43,794 Consolidated Cashflow Statement for the year ended 31 December 2002 Year ended Year ended 31 December 31 December 2002 2001 £'000 £'000 Net cash inflow from operating activities 14,980 11,803 Return on investments and servicing of finance Interest received 204 366 Interest paid (889) (1,227) Dividends received 111 93 Net cash outflow from return on (574) (768) investments and servicing of finance Taxation Corporation tax paid (4,034) (612) Capital expenditure Payments to acquire intangible fixed assets (52) (66) Payments to acquire tangible fixed assets (3,343) (2,160) Receipts from sales of tangible fixed assets 845 212 Net cash outflow for capital expenditure (2,550) (2,014) Acquisitions and disposals Payments to acquire subsidiary undertakings (2,714) - Cash acquired with subsidiary undertakings 331 - Net cash outflow for acquisitions (2,383) - Equity dividends paid to shareholders (870) (652) Net cash inflow before use of liquid resources and 4,569 7,757 financing Financing Purchase of own shares - (338) New long term loans 1,350 - Repayment of long term loans (2,908) (3,437) Net cash outflow from financing (1,558) (3,775) Increase in cash and equivalents 3,011 3,982 NOTES 1 Earnings per Share The calculation of basic earnings per ordinary share is based on the profit on ordinary activities after taxation of £4,603,000 (2001 £4,524,000) and on 14,487,316 (2001 14,504,217) 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 14,487,316 (2001 14,504,217) ordinary shares in issue prior to 31 December 2002 and on adjusted earnings which comprise: 2002 2001 ________________ _______________ £'000 pence £'000 pence Profit on ordinary Activities after taxation 4,603 31.8 4,524 31.2 Eliminate effect of amortisation of goodwill 2,681 18.5 2,658 18.3 Adjusted profit on ordinary activities after taxation 7,284 50.3 7,182 18.3 2 The results for the year ended 31 December 2002 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 2001 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 Security plc Richard Pollard, Company Secretary 01422 372852 This information is provided by RNS The company news service from the London Stock Exchange

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