Lon.sec Regulatory News (LSC)

LONDON SECURITY PLC

30 September 2010

INTERIM ANNOUNCEMENT

FINANCIAL HIGHLIGHTS

Financial highlights of the unaudited results for the six months ended 30 June 2010 compared with the six months ended 30 June 2009 are as follows:

·; revenue of £43.1 million (2009: £42.5 million);

·; operating profit of £8.9 million (2009: £8.4 million); and

·; profit before income tax of £9.1 million (2009: £7.4 million).

TRADING AND PROSPECTS

The financial highlights illustrate that The Group's revenue increased by £0.6 million (1.4%) to £43.1 million and operating profit increased by £0.5 million (6.0%) to £8.9 million. These results partially reflect the movement in the Sterling to Euro average exchange rate which has risen from 1.12 to 1.15. If the 2010 results from the European subsidiaries had been translated at 2009 rates, revenue would have been £44.0 million instead of £43.1 million, an increase of 3.5%.

On the same basis operating profit would have been £9.1 million instead of £8.9 million, an increase of 8.3% compared to 2009, reflecting strong growth in continental Europe. In the UK there has been greater investment in customer retention which has been reflected in lower revenue and operating profit.

In addition to the improved operating profit performance, the Group has benefited from the low level of interest rates and has repaid a further £4.5 million of borrowings. These two factors have resulted in a reduction in finance costs of £0.5 million. Finance income has also benefited from a further £0.5 million gain on the holding of foreign currency.

The Group continues its evolution from being solely an extinguisher supplier to the customers' safety partner through our multi-service strategy offering. This was achieved through a series of training and employee development programmes, which has resulted in improved customer retention and greater motivation of the workforce.

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.

Trading prospects for the second half of 2010 will continue to be challenging but, with the effect of past and potential acquisitions and our multi-service offering, we are in a strong position to face the challenges that will invariably present. Therefore we expect to continue to deliver strong results in the future.

SHARE BUYBACK PROGRAMME

As previously announced, the Board continues to believe that shareholder value will be optimized by the purchase by the company, when appropriate, of its own shares.

During the period under review a total of 11,100 ordinary shares were purchased for cancellation for a total consideration of £88,800. Following 30 June 2010 and up until the date of this announcement a further 10,150 ordinary shares, for a total consideration of £91,275, have been purchased for cancellation

The Directors confirm that they intend to actively continue to pursue this policy and any shareholder who is considering taking advantage of the share buyback programme is invited to contact their stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorised under the Financial Services and Markets Act 2000, in order to contact Brewin Dolphin Limited who are operating the buyback programme on behalf of the company.

J.G. Murray

Chairman

30 September 2010

* Earnings before interest, taxation, depreciation, amortisation and impairment charges.

The above are all as a result of continuing operations.

Consolidated statement of changes in equity

for the six months ended 30 June 2010

1 Nature of information

The financial information contained in this Interim Statement has been neither audited nor reviewed by the auditors 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 2010 is unaudited and has been prepared on the basis of the accounting policies set out in the Group's Annual Report and Accounts 2009. Comparative figures for the year ended 31 December 2009 have been extracted from the statutory accounts for the year ended 31 December 2009 which have been delivered to the Registrar of Companies. The Independent Auditors' Report on those accounts was unqualified and did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006.

2 Earnings per share

The calculation of basic earnings per ordinary share is based on the profit on ordinary activities after taxation of £6,481,000 (2009: £4,974,000) and on 12,293,938 (2009: 12,294,798) 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. The revised weighted average number of shares is 12,293,938 (2009: 12,294,798). After taking into account the effect of dilutive securities, the basic earnings per ordinary share and adjusted earnings per ordinary share figures are unaltered.

3 Actuarial valuation of pension scheme

As permitted under IAS 19, the Group has not prepared an actuarial valuation of pension scheme assets and liabilities for the Interim Statement 2010. In accordance with IAS 19 such a valuation will be prepared for the purposes of the Group's Annual Report and Accounts 2010.

For further information, please contact:

London Security plc

Richard Pollard

Company Secretary 01422 372852

Brewin Dolphin

Sandy Fraser / Iain Marlow 0845 2134730