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10th April 2024 Issue no. 700

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London Security sees profits drop

Fire protection business London Security increased its revenue by 0.2 per cent to £47.8m in the first half, but profits suffered a decline. The company, which is based in Elland, West Yorkshire, builds fire-protection products and provides related services to more than 180,000 businesses across the UK, Belgium, Holland and Austria. It trades under the brand names Ansul, Nu-Swift, Total, Premier and Master.

The firm said that while revenue rose by £200,000 year-on-year in the six months to the end of June, 2013, operating profit decreased by £800,000 - or 8.2 per cent - to £9m.

London Security said that its 2011 and 2012 figures had benefited from legislative changes concerning PFOS foam extinguishers which resulted in higher than normal sales in those periods.

Secondly, the group said it has been successful in replacing lost customers with new customers but generally at lower margins.

The profit before income tax in the first half of 2012 was £15.5m, compared to £8.8m in the first half of this year. Last year's figure included £5.9m from the sale of land in Elland, said London Security. Adjusting for this item, profit before income tax would have been £9.6m.

The group's borrowings were refinanced in May, meaning it has a new £20m facility until 2018.

In the first half of 2013, the group has acquired a total of five "well established" businesses in the UK and Austria at a cost of £3.3m. In July, three further acquisitions were made in the UK at a cost of £1.7m. The group said one of its principal aims is to grow through acquisition.

"Economic growth in the group's market has been depressed. Despite signs of a slow recovery, our market reflects reduced customer confidence and consequent reluctance to invest in our products. However, as a leading provider in this market with a well-diversified and loyal customer base, the board believes we are in a strong position to face further challenges in 2013", said the company.

2nd October 2013