Preliminary Results

RNS Number : 8118D
London Security PLC
02 May 2013
 



London Security plc

 

Preliminary Results

 

FINANCIAL HIGHLIGHTS

Financial highlights of the audited results for the year ended 31 December 2012 compared with the year ended 31 December 2011 are as follows: 

·      revenue of £94.1 million (2011: £96.3 million);

·      operating profit before depreciation and amortisation of £23.0 million (2011: £24.5 million);

·      operating profit of £19.4 million (2011: £20.8 million); and

·      profit after income tax of £19.0 million (2011: £14.1 million).

 

TRADING REVIEW

The financial highlights illustrate that the Group's revenue decreased by £2.2 million (2.3%) to £94.1 million and operating profit decreased by £1.4 million (6.7%) to £19.4 million. However, these results are distorted by the movement in the Euro to Sterling average exchange rate which has increased from 1.15 to 1.23. If the 2012 results had been translated at 2011 rates, revenue would have been £99.2 million instead of £94.1 million, (increase of 3.0% on prior year).On the same basis operating profit would have been £20.6 million instead of £19.4 million, (decrease of 1.0%). This performance is very satisfactory in this difficult trading environment.

Profit after tax includes the sale of part the Group's site in Elland, West Yorkshire. The sale realised £7.2 million and the profit on sale was £5.9 million. A new factory and office building was constructed in Elland at a cost of £3.2 million.

A more detailed review of this year's performance is given in the Operational Review and Financial Review.

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 entered a new market, Luxembourg, with the acquisition of A.L.P.I. sarl.

MANAGEMENT AND STAFF

2012 was a year in which the staff performed well and, on your behalf, I would like to express thanks and appreciation for their contribution.

FINANCING

The Group has benefited from the low level of interest rates and has repaid a further £10.7 million of borrowings.

The Group's borrowings are due for repayment by June 2013 and are therefore disclosed as current liabilities. Lloyds TSB Bank Plc irrevocably confirmed their agreement to new facilities on 29 April 2013.  The final documentation is expected to be finalised no later than 31 May 2013.  The Group has new facilities of £20 million until 2018.  This will be repaid at the rate of £2 million per year over 5 years with a £10 million repayment at maturity. The multi-currency loan will be denominated £6 million in Sterling and £14 million in Euros.

DIVIDENDS

An interim dividend in respect of 2012 of £0.25 per ordinary share was paid to shareholders on 22 June 2012.

A further interim dividend in respect of 2012 of £0.29 per ordinary share was paid to shareholders on 7 December 2012.

The Board is recommending the payment of a final dividend in respect of 2012 of £0.38 per ordinary share.to be paid on 8 July 2013.

Dividend policy continues to be reviewed regularly by the Board.

FUTURE PROSPECTS

Economic growth in the Group's market has been depressed in 2012 as uncertainty surrounding European sovereign debt continues leading to austerity measures, reduced customer confidence and related economic fragility. However, the Group does not operate in the most troubled of the peripheral Eurozone economies and fire protection is not an item of discretionary expenditure. As a leading provider in this market with a well diversified and loyal customer base, the Board is optimistic for further success in 2013.

ANNUAL GENERAL MEETING

The Annual General Meeting will be held at 10 Bruton Street, 5th Floor, London W1J 6PX on 19 June 2013 at 11.00am.

 

J.G. Murray

Chairman

1 May 2013


 

 

2012

2011

 

Note

£'000

£'000

Revenue

 

94,128

96,267

Cost of sales

 

(18,164)

(19,481)

Gross profit


75,964

76,786

Distribution costs

 

(35,268)

(35,474)

Administrative expenses

 

(21,267)

(20,554)

Operating profit

 

19,429

20,758

EBITDA*

 

23,041

24,549

Depreciation and amortisation

 

(3,612)

(3,791)

Operating profit

 

19,429

20,758

Profit on disposal of fixed assets

 

5,928

-

Finance income

 

721

855

Finance costs

 

(965)

(1,286)

Finance costs - net


(244)

(431)

Profit before income tax

 

25,113

20,327

Income tax expense

 

(6,115)

(6,199)

Profit for the year attributable to equity shareholders of the Company

 

18,998

14,128

Earnings per share

 

 

 

Basic and diluted

1

154.9p

115.2p

 

* Earnings before interest, tax, depreciation and amortisation.

 


 

 

2012

2011

 

 

£'000

£'000

Profit for the financial year

 

18,998

14,128

Other comprehensive income:

 

 

 

- currency translation differences on foreign currency net investments, net of tax

 

(507)

(421)

- actuarial loss recognised in pension scheme


(491)

(68)

- movement on deferred tax relating to pension scheme

 

180

16

- net pension asset not recognised due to uncertainty over future recoverability


(573)

(568)

Other comprehensive loss for the year, net of tax

 

(1,391)

(1,041)

Total comprehensive income for the year


17,607

13,087

 

 


 

 

 

 

 

 

Profit

 

 

Share

Share

Capital

Merger

Other

and loss

 

 

capital

premium

redemption

reserve

reserve

account

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 January 2011

123

-

-

2,033

6,310

47,567

56,033

Total comprehensive income for the year

 

 

 

 

 

 

 

Profit for the financial period

-

-

-

-

-

14,128

14,128

Other comprehensive income:

 

 

 

 

 

 

 

- exchange adjustments

-

-

-

-

(421)

-

(421)

- actuarial loss on pension scheme

-

-

-

-

-

(68)

(68)

- movement on deferred tax relating to pension asset

-

-

-

-

-

16

16

- movement in net pension asset not recognised due to uncertainty over future recoverability


-


-


-


-


-


(568)


(568)

Total comprehensive income for the year

-

-

-

-

(421)

13,508

13,087

Contributions by and distributions to owners of the Company:

 

 

 

 

 

 

 

- dividends

-

-

-

-

-

(2,944)

(2,944)

- issue of shares

-

344

-

-

-

-

344

- purchase of own shares

-

-

1

-

-

(483)

(482)

Total contributions by and distributions to owners
of the Company


-


344


1


-


-


(3,427)


(3,082)

At 1 January 2012

123

344

1

2,033

5,889

57,648

66,038

Total comprehensive income for the year

 

 

 

 

 

 

 

Profit for the financial period

-

-

-

-

-

18,998

18,998

Other comprehensive income:

 

 

 

 

 

 

 

- exchange adjustments

-

-

-

-

(507)

-

(507)

- actuarial loss on pension scheme

-

-

-

-

-

(491)

(491)

- movement on deferred tax relating to pension asset

-

-

-

-

-

180

180

- movement in net pension asset not recognised due to uncertainty over future recoverability

-

-

-

-

-

(573)

(573)

Total comprehensive income for the year

-

-

-

-

(507)

18,114

17,607

Contributions by and distributions to owners of the Company:

 

 

 

 

 

 

 

- dividends

-

-

-

-

-

(6,621)

(6,621)

- purchase of own shares

-

-

-

-

-

(5)

(5)

Total contributions by and distributions to owners
of the Company

-

-

-

-

-

(6,626)

(6,626)

At 31 December 2012

123

344

1

2,033

5,382

69,136

77,019

 

The merger reserve is not a distributable reserve. The other reserve relates entirely to the effects of changes in foreign currency exchange rates.

 

 


 

 

2012

2011

 

 

£'000

£'000

Assets




Non-current assets

 

 

 

Property, plant and equipment

 

9,511

7,389

Intangible assets

 

54,455

53,454

Deferred tax asset

 

488

500

 

 

64,454

61,343

Current assets

 

 

 

Inventories

 

9,123

8,329

Trade and other receivables

 

18,512

18,373

Cash and cash equivalents

 

17,861

23,043

 

 

45,496

49,745

Total assets


109,950

111,088

Liabilities




Current liabilities

 

 

 

Trade and other payables

 

(15,767)

(15,919)

Income tax liabilities

 

(65)

(1,004)

Borrowings

 

(15,060)

(7,030)

Derivative financial instruments

 

(99)

-

Provision for liabilities and charges


(4)

(109)

 

 

(30,995)

(24,062)

Non-current liabilities

 

 

 

Trade and other payables

 

(427)

(526)

Borrowings


-

(19,329)

Derivative financial instruments


-

(103)

Deferred tax liabilities

 

(333)

(359)

Retirement benefit obligations


(1,176)

(671)

 

 

(1,936)

(20,988)

Total liabilities


(32,931)

(45,050)

Net assets


77,019

66,038

Shareholders' equity

 

 

 

Ordinary shares

 

123

123

Share premium


344

344

Capital redemption reserve

 

1

1

Merger reserve

 

2,033

2,033

Other reserves

 

5,382

5,889

Retained earnings

 

69,136

57,648

Total shareholders' equity

 

77,019

66,038

 


 

 

2012

2011

 


£'000

£'000

Cash flows from operating activities

 

 

 

Cash generated from operations

 

20,621

22,887

Interest paid

 

(419)

(626)

Income tax paid

 

(7,051)

(6,027)

Net cash generated from operating activities

 

13,151

16,234

Cash flows from investing activities

 

 

 

Acquisition of subsidiary undertakings (net of cash acquired)

 

(1,226)

(1,390)

Purchases of property, plant and equipment

 

(5,402)

(2,332)

Proceeds from sale of property, plant and equipment

 

7,146

300

Proceeds from sale of intangible assets

 

1

-

Purchases of intangible assets

 

(1,162)

(1,653)

Interest received

 

217

266

Net cash used in investing activities

 

(426)

(4,809)

Cash flows from financing activities

 

 

 

Repayments of borrowings

 

(10,658)

(7,252)

Purchase of own shares


(5)

(482)

Issue of shares


-

344

Dividends paid to Company's shareholders

 

(6,621)

(2,944)

Net cash used in financing activities

 

(17,284)

(10,334)

Effects of exchange rates on cash and cash equivalents


(623)

(334)

Net (decrease)/increase in cash in the year

 

(5,182)

757

Cash and cash equivalents at beginning of the year

 

23,043

22,286

Cash and cash equivalents at end of the year

 

17,861

23,043

 

1 Earnings per share

The calculation of basic earnings per ordinary share ("EPS") is based on the profit on ordinary activities after taxation of £18,998,000 (2011: £14,128,000) and on 12,261,486 (2011: 12,265,538) 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.

 

2012

 

2011

 

£'000

Pence

 

£'000

Pence

Profit on ordinary activities after taxation

18,998

154.9

 

14,128

115.2

 

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 2012 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 2011 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 2012 and 31 December 2011 did not contain a statement under s498 (1) to (4) of the 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 17 May 2013. 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

                                                Company Secretary                                                      Tel:       01422 372852

 

WH Ireland Limited

 

                                                Andrew Kitchingman                                                    Tel:       0113 394 6600

                                                Nick Field                                                                        Tel:       0207 220 1658


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR UGUWAAUPWPUG
UK 100

Latest directors dealings