London Security plc

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.

Final Results for the Year Ended 31 December 2024

Chairman's statement

 J.J. Murray, Chairman

Financial Highlights

Financial highlights of the audited results for the year ended 31 December 2024 compared with the year ended 31 December 2023 are as follows:

•     revenue of £220.7 million (2023: £219.7 million),

•     operating profit of £29.7 million (2023: £31.6 million),

•     profit for the year of £21.7 million (2023: £23.3 million),

•     cash of £29.6 million (2023: £32.7 million),

•     earnings per share for the year of £1.77 (2023: £1.90) and

•     a dividend per share of £1.22 (2023: £1.24).

Trading review

The financial highlights illustrate that the Group's revenue increased by £1.0 million (0.5%) to £220.7 million and operating profit decreased by £1.8 million (5.7%) to £29.8 million. These results reflect:

•     The movement in the Euro to Sterling average exchange rate, which had an adverse effect of £4.6 million on reported revenue and £0.8 million on operating profit. A more detailed review of this year's performance is given in the Financial Review and the Strategic Report.

•      2024 was a period of consolidation for the Group following the 16.2% increase in operating profit that was enjoyed in 2023. Whilst operating profit has decreased versus 2023, this still represents a 9.2% increase on 2022.

•      The core servicing business remains very consistent with a slight fall in special projects, the instance of which is unpredictable.

•      Although inflation has moderated since last year, we continue to experience upward input price pressures. These supply price increases have been passed on to our customers where possible. Business confidence is low and is depressing growth and reducing our customers' appetite to invest. All the countries in which we operate are experiencing low or no growth.

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 completed the acquisition of service contracts from smaller well-established businesses for integration into the Group's existing subsidiaries and has grown its presence in Austria, the Netherlands, the United Kingdom, Belgium, Luxembourg, France and Germany.

Management and staff

2024 was a year in which the staff performed well and, on behalf of the shareholders, I would like to express thanks and appreciation for their contribution. The Group recognises that we can only achieve our aims with talented and dedicated colleagues who provide outstanding customer service in every area of the business.

Dividends

An interim dividend in respect of 2024 of £0.80 per ordinary share was paid to shareholders on 29 November 2024. The Board is recommending the payment of a final dividend in respect of 2024 of £0.42 per ordinary share. This would be paid on 12 July 2025 to shareholders on the register on 13 June 2025 with the shares marked ex-dividend on 12 June 2025.

Future prospects

The markets in which we operate are entering what is likely to be a period of low growth. The London Security Group however has a healthy balance sheet, strong cash reserves and a track record for good cash generation. The Board therefore considers that the Group is well placed to weather any downturn. We will also continue to invest in our future and the Group plans to continue to grow through acquisitions.

Annual General Meeting

The Annual General Meeting ("AGM") will be held at 2 Jubilee Way, Elland, West Yorkshire HX5 9DY, on 25 June 2025 at 11.30 am. The Company confirms that shareholders are able to attend in person should they wish to do so. However, we strongly encourage shareholders to vote on all resolutions by completing the enclosed form of proxy for use at that Meeting, which you are requested to return in accordance with the instructions on the form.

J-J. Murray

Chairman

9 May 2025

Consolidated income statement

 for the year ended 31 December 2024

The above results are all as a result of continuing operations.

Consolidated statement of comprehensive income

for the year ended 31 December 2024

Consolidated statement of changes in equity

for the year ended 31 December 2024

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

Consolidated statement of financial position

as at 31 December 2024

Consolidated statement of cash flows

for the year ended 31 December 2024

Notes to the financial statements

for the year ended 31 December 2024

1 Earnings per share

The calculation of basic earnings per ordinary share ("EPS") is based on the profit on ordinary activities after taxation of £21,665,000 (2023: £23,264,000) and on 12,259,877 (2023: 12,260,286) 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 financial information within 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 2024 have been extracted from the full accounts of the Group for that year which received an unmodified auditor's report, and which have not yet been delivered to the Registrar of Companies.  The financial information for the year ended 31 December 2023 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 unmodified and does not include a statement under section 498(2) or (3) of the Companies Act 2006.

This preliminary announcement has been prepared in accordance with the recognition and measurement principles of UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006 and in accordance with the AIM rules. The financial information included in this preliminary announcement does not include all the disclosures required in accounts prepared in accordance with UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006 and accordingly it does not itself comply with UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006.  The accounting policies used in the preparation of this preliminary announcement have remained unchanged from those set out in the statutory accounts for the year ended 31 December 2023. They are also consistent with those in the full accounts for the year ended 31 December 2024, which have yet to be published.

The Group will post its annual report and accounts to shareholders on 22 May 2025, a copy of the annual report and accounts will be available on the company's website (www.londonsecurity.org).

The person responsible for arranging the release of this announcement on behalf of the Company is Richard Pollard, Company Secretary.

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