Lon.sec Regulatory News (LSC)

London Security PLC

(the "Group" or "Company")

Interim Results for the Six Months Ended 30 June 2021

Chairman's Statement

J.G. Murray, Chairman

Financial Highlights

• Revenue £82.7m (2020: £67.2m)

• Operating profit £12.3m (2020: £7.6m)

• Earnings per share 75.6p (2020: 39.9p)

TRADING

The financial highlights illustrate that the Group's revenue increased by £15.5 million (23.1%) to £82.7 million.

Operating profit increased by £4.7 million (61.8%) to £12.3 million.

Earnings per share increased by 35.7p (89.5%) to 75.6p.

The period under review reflects the impact from the coronavirus outbreak, which significantly impacted all the countries in which we operate in quarter 1 and quarter 2 of 2020. In 2021 there has largely been a return to normality in our business although some customers remain closed and there are still some restrictions on our operations to help reduce transmission. We must be prepared for further disruption should further waves materialise in any of the countries in which we operate.

ACQUISITIONS

In the six months to the end of June, the Group made four acquisitions. It remains a principal aim of the Group to grow through acquisition. Acquisitions are being sought throughout Europe and the Group will invest where an adequate return is envisaged by the Board.

CASH AND FINANCING

The Group's cash balance as at 30 June 2021 was £43.7 million. This is an increase of £6.2 million on the 31 December 2020 balance of £37.5 million.

In May 2018 the Group entered into a five year multi-currency facility until 2023 comprising £3.15 million and €8.40 million. To limit our exposure to increasing interest rates these loans are subject to interest rate caps of 1.5% LIBOR on the Sterling loan and 0.25% EURIBOR on the Euro loan.

PROSPECTS

As the situation continues, cash management will be a key consideration; the London Security Group has a healthy balance sheet, strong cash reserves and a track record for good cash generation. The Board therefore considers that with its strong balance sheet and material net cash position the Group is well placed to prosper from the rebound in the economy as the vaccine programmes gain momentum in 2021.

DIVIDENDS

A final dividend in respect of 2020 of £0.40 per ordinary share was paid to shareholders on 9 July 2021.

J.G. Murray

Chairman

27 September 2021

Consolidated income statement

for the six months ended 30 June 2021

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

The above are all as a result of continuing operations.

Consolidated statement of comprehensive income

for the six months ended 30 June 2021

Consolidated statement of changes in equity

for the six months ended 30 June 2021

Consolidated statement of financial position

as at 30 June 2021

Consolidated statement of cash flow

for the six months ended 30 June 2021

Notes to the financial statements

for the six months ended 30 June 2021

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 2021 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 2020. 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 2020 have been extracted from the statutory accounts for the year ended 31 December 2020, 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 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 £9,267,000 (2020: £4,895,000) and on 12,261,477 (2020: 12,261,477) 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.

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 2021. In accordance with IAS 19 such a valuation will be prepared for the purposes of the Group's Annual Report and Accounts 2021.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

For further information, please contact:

London Security plc

Richard Pollard

Company Secretary Tel : 01422 372852

WH Ireland Limited

Chris Fielding Tel : 0207 220 1666

Ben Good