Interim results for six months ended 30 June 2026

London Security PLC

16 September 2026

 

THIS  ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE UK VERSION OF REGULATION (EU) NO 596/2014 WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

London Security PLC

(the "Group" or "Company")

Interim results for the six months ended 30 June 2026

Chairman's statement

J-J. Murray, Chairman

Financial highlights

•     Revenue £127.6m (2025: £116.9m)

•     Operating profit £14.1m (2025: £12.4m)

•     Earnings per share 80.4p (2025: 70.8p)

Trading

The financial highlights illustrate that the Group's revenue increased by £10.7 million (9.2%) to £127.6 million.

Operating profit increased by £1.7 million (13.7%) to £14.1 million.

These results include the favourable movement in the Euro to Sterling average exchange rate, which has decreased from 1.19 to 1.15. If the 2026 results from the European subsidiaries had been translated at 2025 rates, revenue would have been £124.1 million instead of £127.6 million, which would represent an increase of 6.2% on the prior year.  On the same basis, operating profit would have been £13.6 million instead of £14.1 million.

The Group has continued its strategy of investing in the engineering workforce addressing the shortage of engineers with an ongoing recruitment drive. After an initial period of training these new engineers are now servicing the Group's customers. Their performance is expected to accelerate through the year ahead with active mentoring and further training from their field service managers. Improved service performance is driving organic growth in the service pool.

Although inflation has moderated since last year, the Group continues to experience upward input price pressures. These supply price increases have been passed on to the Group's customers where possible.

Acquisitions

In the six months to the end of June the Group strengthened its presence in the Netherlands and the United Kingdom. In the United Kingdom it acquired 100% of the share capital of a standalone fire protection company, Lindum Fire Services Limited. It also acquired service contracts for integration into the Group's existing subsidiaries from other sources in the Netherlands and the United Kingdom.

It remains a principal aim of the Group 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 by the Board.

Cash and financing

The Group's cash balance at 30 June 2026 was £54.8 million. This is an increase of £8.9 million on the 31 December 2025 balance of £45.9 million.

Prospects

Demand for the Group's products and services remains strong as they are non-discretionary expenditure items. The London Security Group has a healthy balance sheet, strong cash reserves and a track record for good cash generation.

Dividends

A final dividend in respect of 2025 of £0.42 per ordinary share was paid to shareholders on 10 July 2026.

J-J. Murray

Chairman

16 September 2026

Consolidated income statement

for the six months ended 30 June 2026

			Unaudited	Unaudited	Audited
			six months	six months	year
			ended	ended	ended
			30 June	30 June	31 December
			2026	2025	2025
		Note	£'000	£'000	£'000
	Revenue		127,560	116,922	244,300
	Cost of sales		(34,147)	(32,274)	(65,292)
	Gross profit		93,413	84,648	179,008
	Distribution costs		(50,062)	(45,551)	(93,011)
	Administrative expenses		(29,265)	(26,698)	(53,332)
	Operating profit		14,086	12,399	32,665
	Finance income		186	158	284
	Finance costs		(220)	(224)	(454)
	Finance costs - net		(34)	(66)	(170)
	Profit before income tax		14,052	12,333	32,495
	Income tax expense		(4,201)	(3,648)	(8,716)
	Profit for the period		9,851	8,685	23,779
	Earnings per share
	Basic and diluted	3	80.4p	70.8p	194.0p
	Dividends
	Dividends paid per share		Nil	Nil	97.0p

The above are all as a result of continuing operations.

Consolidated statement of comprehensive income

for the six months ended 30 June 2026

	Unaudited	Unaudited	Audited
	six months	six months	year
	ended	ended	ended
	30 June	30 June	31 December
	2026	2025	2025
	£'000	£'000	£'000
Profit for the financial period	9,851	8,685	23,779
Other comprehensive (expense)/income:
Items that will not be reclassified subsequently to profit or loss:
- currency translation differences on foreign operation consolidation, net of tax	(1,022)	3,017	4,738
- actuarial gain recognised in the Ansul pension scheme	-	-	15
- movement on deferred tax relating to the Ansul pension scheme	-	-	(4)
Other comprehensive (expense)/income for the period, net of tax	(1,022)	3,017	4,749
Total comprehensive income for the period	8,829	11,702	28,528

Consolidated statement of changes in equity

for the six months ended 30 June 2026

	Share	Share	Capital	Merger	Other	Retained
	capital	premium	redemption	reserve	reserve	earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 January 2025	123	344	1	2,033	2,795	149,675	154,971
Comprehensive income for the period:
- profit for the period	-	-	-	-	-	8,685	8,685
- exchange adjustments	-	-	-	-	3,017	-	3,017
Total comprehensive income for the period	-	-	-	-	3,017	8,685	11,702
At 30 June 2025	123	344	1	2,033	5,812	158,360	166,673
Comprehensive income/(expense) for the period:
- profit for the period	-	-	-	-	-	15,094	15,094
- exchange adjustments	-	-	-	-	1,721	-	1,721
- actuarial gain on pension schemes	-	-	-	-	-	15	15
- net movement on deferred tax relating to pension schemes	-	-	-	-	-	(4)	(4)
Total comprehensive income for the period	-	-	-	-	1,721	15,105	16,826
Contributions by and distributions to owners of the Company:
- dividends	-	-	-	-	-	(11,890)	(11,890)
At 31 December 2025	123	344	1	2,033	7,533	161,575	171,609
Comprehensive income/(expense) for the period:
- profit for the period	-	-	-	-	-	9,851	9,851
- exchange adjustments	-	-	-	-	(1,022)	-	(1,022)
Total comprehensive (expense)/income for the period	-	-	-	-	(1,022)	9,851	8,829
Contributions by and distributions to owners of the Company:
- purchase of own shares	-	-	-	-	-	(22)	(22)
At 30 June 2026	123	344	1	2,033	6,511	171,404	180,416

Consolidated statement of financial position

as at 30 June 2026

	Unaudited	Unaudited	Audited
	as at	as at	as at
	30 June	30 June	31 December
	2026	2025	2025
	£'000	£'000	£'000
Assets
Non-current assets
Property, plant and equipment	21,893	19,950	20,823
Right-of-use assets	7,273	7,896	7,624
Intangible assets	76,591	76,167	77,028
Deferred tax asset	692	724	602
	106,449	104,737	106,077
Current assets
Inventories	23,878	22,602	23,149
Trade and other receivables	53,382	50,182	50,359
Cash and cash equivalents	54,823	42,739	45,868
	132,083	115,523	119,376
Total assets	238,532	220,260	225,453
Liabilities
Current liabilities
Trade and other payables	(45,342)	(40,272)	(40,713)
Income tax liabilities	(2,455)	(1,742)	(2,526)
Borrowings	(199)	(189)	(237)
Lease liabilities	(3,000)	(2,795)	(2,860)
Provision for liabilities and charges	(1)	(472)	(1)
	(50,997)	(45,470)	(46,337)
Non-current liabilities
Trade and other payables	(947)	(996)	(805)
Borrowings	(109)	(54)	(117)
Lease liabilities	(4,513)	(5,298)	(5,018)
Deferred income tax liabilities	(890)	(1,220)	(890)
Retirement benefit obligations	(305)	(549)	(308)
Provision for liabilities and charges	(355)	-	(369)
	(7,119)	(8,117)	(7,507)
Total liabilities	(58,116)	(53,587)	(53,844)
Net assets	180,416	166,673	171,609
Shareholders' equity
Ordinary shares	123	123	123
Share premium	344	344	344
Capital redemption reserve	1	1	1
Merger reserve	2,033	2,033	2,033
Other reserves	6,511	5,812	7,533
Retained earnings	171,404	158,360	161,575
Total equity	180,416	166,673	171,609

Consolidated statement of cash flow

for the six months ended 30 June 2026

	Unaudited	Unaudited	Audited
	six months	six months	year
	ended	ended	ended
	30 June	30 June	31 December
	2026	2025	2025
	£'000	£'000	£'000
Cash flows from operating activities
Cash generated from operations	23,160	24,323	48,887
Interest paid	(220)	(224)	(452)
Income tax paid	(6,370)	(6,298)	(9,506)
Net cash generated from operating activities	16,570	17,801	38,929
Cash flows from investing activities
Acquisition of subsidiary undertakings (net of cash acquired)	(1,075)	-	(420)
Purchases of property, plant and equipment	(4,507)	(3,915)	(7,620)
Proceeds from sale of property, plant and equipment	352	308	659
Purchases of intangible assets	(489)	(483)	(2,386)
Interest received	186	158	284
Net cash used in investing activities	(5,533)	(3,932)	(9,483)
Cash flows from financing activities
Repayments of borrowings	(34)	(103)	(90)
Payment of lease liabilities	(1,632)	(1,476)	(3,002)
Purchase of own shares	(22)	-	-
Dividends paid to the Company's shareholders	-	-	(11,890)
New borrowings	-	-	163
Net cash used in financing activities	(1,688)	(1,579)	(14,819)
Net increase in cash in the period	9,349	12,290	14,627
Cash and cash equivalents at the beginning of the period	45,868	29,561	29,561
Effects of exchange rates on cash and cash equivalents	(394)	888	1,680
Cash and cash equivalents at the end of the period	54,823	42,739	45,868

Notes to the financial statements

for the six months ended 30 June 2026

1 Nature of information

The financial information contained in this Interim Statement has been neither audited nor reviewed by the auditor and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the six months ended 30 June 2026 has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the year ended 31 December 2025. The principal risks and uncertainties as disclosed in the year end accounts are considered to be consistent with those that are still applicable now.

Comparative figures for the year ended 31 December 2025 have been extracted from the statutory accounts for the year ended 31 December 2025, which have been delivered to the Registrar of Companies. The Independent Auditor's Report on those accounts was unqualified and did not contain an emphasis of matter paragraph or any statement under Section 498 of the Companies Act 2006.

2 Basis of preparation

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and income and expense. Actual results may differ from these estimates.

3 Earnings per share

The calculation of basic earnings per ordinary share is based on the profit on ordinary activities after taxation of £9,851,000 (2025: £8,685,000) and on 12,259,340 (2025: 12,259,877) ordinary shares, being the weighted average number of ordinary shares in issue during the period.

For diluted earnings per ordinary share, the weighted average number of shares in issue is adjusted to assume conversion of all potentially dilutive 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.

	Unaudited	Unaudited	Audited
	six months	six months	year
	ended	ended	ended
	30 June	30 June	31 December
	2026	2025	2025
	£'000	£'000	£'000
Profit on ordinary activities after taxation	9,851	8,685	23,779
Basic earnings per ordinary share	80.4p	70.8p	194.0p

4 Actuarial valuation of the pension scheme

As permitted under IAS 19 the Group has not prepared an actuarial valuation of the pension scheme assets and liabilities for the Interim Statement 2026. In accordance with IAS 19 such a valuation will be prepared for the purposes of the Group's Annual Report and Accounts 2026.

For further information, please contact:

London Security plc

Richard Pollard

Company Secretary                                                                                                            Tel : [phone]

Zeus Capital Limited

Darshan Patel / George Duxberry                                                                                      Tel : [phone]

 

END