RNS Number:4835K
London Security PLC
29 April 2003



LONDON SECURITY PLC



Preliminary results for the year ended 31 December 2002



I am again able to report that the Group has delivered excellent results in
difficult market conditions.  Financial highlights are:



  * Turnover increased by 7% to #48.1million
  * Operating profit increased by 9% to #9.3million
  * Earnings before interest, tax, depreciation and amortisation (EBITDA)
    increased by 7% to #13.7million
  * Net gearing reduced from 21% at 31 December 2001 to 10%
  * Dividend increased by 27% to 7p per share
  * #3.5million invested in acquisition of subsidiaries



Trading Review



The above financial highlights confirm considerable progress made in the year.
This is very encouraging as it follows the tremendous growth reported in 2001.



The turnover of the subsidiaries in Belgium and Holland continued to grow in
2002.  Organic growth in the intake of new service contracts fuelled this
increase which was achieved whilst maintaining profit margins.



Throughout the Group initiatives have continued to improve levels of customer
satisfaction.



Future Prospects



The outlook for 2003 is cautiously optimistic.  On the fire extinguisher service
side, our objective is to provide a greater range of fire protection services
including improvements to the fire training, fire alarms and risk assessment
services currently offered.  Other services such as emergency plans and escape
routes will be offered to provide our customers with a one-stop-shop solution
for their fire protection requirements.



BSI have recommended that Nu-Swift International Limted receive a licence under
ISO 14001, the new environmental standard accreditation.  As evidence of our
long-term commitment to the environment, it is our intention to expand this
across our European subsidiaries.



Acquisitions



In addition to organic growth, it remains a principal aim of the Company 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.



In 2002 we have been successful in this objective with the acquisitions of Asco
Extinguishers Company Limited and CFP Cavelle Limited in the UK and HUG S.A. in
Switzerland.



Management and Staff



2002 was a year in which the staff excelled and, on your behalf, I would like to
express thanks and appreciation for their contribution.



Dividend



A final dividend of 5p (2001: 4p) per share is proposed, payable on 20 June 2003
to shareholders on the register on 23 May 2003.  An interim dividend of 2.0p per
share (2001: 1.5p) was paid in November 2002, making a total dividend for the
year of 7.0p (2001: 5.5p) per share.



Annual General Meeting



The Annual General Meeting will be held at the Grosvenor House Hotel, Park Lane,
London, W.1 on 5 June 2003 at 11.00 a.m..



J.G. MURRAY

Chairman





Consolidated Profit and Loss Account

for the year ended 31 December 2002
                                                     Notes              Year ended      Year ended
                                                                                31     31 December
                                                                          December
                                                                              2002            2001
                                                                           #'000's         #'000's
Turnover                                                                    48,078          45,005

Cost of sales                                                              (7,288)         (6,756)
Gross profit                                                                40,790          38,249

Distribution costs                                                        (18,079)        (17,357)
Administrative expenses                                                   (13,433)        (12,348)

Operating profit                                                             9,278           8,544

EBITDA**                                                                    13,694          12,839

Depreciation                                                               (1,735)         (1,637)
Amortisation of goodwill                                                   (2,681)         (2,658)
Operating profit                                                             9,278           8,544

Income from fixed asset investments                                            111              93
Net interest payable and others                                              (946)           (908)

Profit on ordinary activities                                                8,443           7,729
        before taxation

Taxation                                                                   (3,840)         (3,205)
Profit on ordinary activities                                                4,603           4,524
        after taxation

Dividends                                                                  (1,014)           (797)
Retained profit                                                              3,589           2,821

Basic earnings per ordinary share                                            31.8p           31.2p

Adjusted earnings per ordinary share                                         50.3p           49.5p

Dividend per ordinary share                                                   7.0p            5.5p

All of the above results arose from continuing operations.  Turnover and operating
profit attributable to acquisitions has not been separately disclosed on the face
of the profit and loss account on the grounds of materiality.


**Earnings Before Interest, Taxation, Depreciation and Amortisation




                           CONSOLIDATED BALANCE SHEET
                             as at 31 December 2002


                                                                                  2002         2001
                                                                                 #'000         #000
Fixed assets
Intangible assets                                                               47,128       47,351
Tangible assets                                                                  7,363        6,068
Investments                                                                         70           70
                                                                                54,561       53,489
Current assets
Stocks                                                                           3,425        2,882
Debtors                                                                          9,740        9,457
Cash at bank and in hand                                                        10,303        7,292
                                                                                23,468       19,631

Creditors: amounts falling due within one year
Finance debt                                                                   (3,503)      (3,090)
Other creditors                                                               (13,383)     (11,731)
                                                                              (16,886)     (14,821)
Net current assets                                                               6,582        4,810
Total assets less current liabilities                                           61,143       58,299

Creditors: amounts falling due after more than one year
Finance debt                                                                  (11,255)     (12,848)
Provisions for liabilities and charges                                         (1,907)      (1,657)

Net assets                                                                      47,981       43,794

Capital and reserves

Called up share capital                                                          1,449        1,449
Share premium                                                                   27,476       27,476
Capital redemption reserve                                                         115          115
Merger reserve                                                                   2,033        2,033
Profit and loss account                                                         16,908       12,721
Total equity shareholders' funds                                                47,981       43,794





Consolidated Cashflow Statement
for the year ended 31 December 2002
                                                                       Year ended    Year ended
                                                                      31 December   31 December
                                                                             2002          2001
                                                                            #'000         #'000

Net cash inflow from operating activities                                  14,980        11,803

Return on investments and servicing
   of finance
  Interest received                                                           204           366
  Interest paid                                                             (889)       (1,227)
  Dividends received                                                          111            93
Net cash outflow from return on                                             (574)         (768)
     investments and servicing of finance

Taxation
  Corporation tax paid                                                    (4,034)         (612)

Capital expenditure
 Payments to acquire intangible fixed assets                                 (52)          (66)
Payments to acquire tangible fixed assets                                 (3,343)       (2,160)
 Receipts from sales of tangible fixed assets                                 845           212
Net cash outflow for capital expenditure                                  (2,550)       (2,014)

Acquisitions and disposals
 Payments to acquire subsidiary undertakings                              (2,714)             -
 Cash acquired with subsidiary undertakings                                   331             -
Net cash outflow for acquisitions                                         (2,383)             -

Equity dividends paid to shareholders                                       (870)         (652)
Net cash inflow before use of liquid resources and                          4,569         7,757
financing
Financing
 Purchase of own shares                                                         -         (338)
 New long term loans                                                        1,350             -
 Repayment of long term loans                                             (2,908)       (3,437)
Net cash outflow from financing                                           (1,558)       (3,775)
Increase in cash and equivalents                                            3,011         3,982


NOTES


1          Earnings per Share


The calculation of basic earnings per ordinary share is based on the profit on
ordinary activities after taxation of #4,603,000 (2001 #4,524,000) and on
14,487,316 (2001 14,504,217) ordinary shares, being the weighted average number
of ordinary shares in issue during the period.


The calculation of adjusted earnings per ordinary share is based on a weighted
average of 14,487,316 (2001 14,504,217) ordinary shares in issue prior to 31
December 2002 and on adjusted earnings which comprise:



                                  2002                                 2001

                             ________________                    _______________

                              #'000        pence         #'000            pence

  Profit on ordinary
  Activities after taxation    4,603        31.8         4,524             31.2


  Eliminate effect of
  amortisation of goodwill     2,681        18.5         2,658             18.3



  Adjusted profit on ordinary
  activities after taxation   7,284         50.3         7,182             18.3



2          The results for the year ended 31 December 2002 have been abridged
from the full accounts of the Group for that year which received an unqualified
auditors' report and which have not yet been delivered to the Registrar of
Companies.  The results for the year ended 31 December 2001 have been extracted
from the Group's statutory accounts which received an unqualified auditors'
report and have been filed with the Registrar of Companies.



3          The preceding statements have been prepared in accordance with
applicable accounting standards on a basis which is consistent with that applied
in previous periods.





Enquiries:



London Security plc

Richard Pollard, Company Secretary                     01422 372852


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