Lon.sec Regulatory News (LSC)

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

* Earnings before interest, tax, depreciation and amortisation.

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

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.

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