|
London Security PLC on Monday reported a profit decline during the first half of 2025 despite a rise in revenue, as earnings were hurt by higher expenses and foreign exchange movements. The West Yorkshire, England-based manufacturer of fire protection products said pretax profit for the six months that ended June 30 was £12.3 million, falling 8.2% from £13.4 million the year before. Revenue, on the other hand, grew 5.4% to £116.9 million from £110.9 million. The company noted this included an ‘adverse movement’ in the euro to sterling average exchange rate, which it said rose to 1.19 from 1.17. If results from its European subsidiaries were translated at constant currency, London Security put its revenue for the six-month period at £118.5 million, which would have represented a 6.9% on-year improvement. On the same basis operating profit at constant currency would have been £12.6 million, against the 7.5% decline reported on a currency-adjusted basis to £12.4 million from £13.4 million. London Security also attributed ‘a shortage of engineers, the increased costs of employing engineers and ongoing inflation’ as the main factors behind the fall in operating profit. Distribution costs during the half-year were up 9.1% to £45.6 million from £41.8 million, while administrative expenses increased 4.3% to £26.7 million from £25.6 million. ‘All the countries in which the group operates are experiencing low or no growth. However, demand for the group’s products and services remains strong as they are non-discretionary expenditure items,’ said Chair Jean-Jacques Murray. ‘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 cope with a period of low growth.’ Shares in London Security were last traded at 3,625.00 pence in London. The stock is down 4.6% over the past year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
