9th May 2019 13:49
LONDON (Alliance News) - London Security PLC on Thursday reported a rise in annual profit, helped by the company's acquisitions in the UK, Austrian and Denmark.
In 2018, the fire protection company reported pretax profit of GBP23.1 million compared to GBP21.6 million the year before, a 6.9% rise.
London Security's revenue increased 9.4% in 2018 to GBP137.7 million from GBP125.9 million the year before.
The company said the increased profit and revenue can be attributed to the positive additions of acquisitions in 2018 and 2018 in the UK, Austria and Denmark.
"In the year under review the group has acquired four established fire protection businesses and strengthened its position in the passive fire protection market with the acquisition of Amberfire Ltd. The group has grown its presence in the Netherlands, Belgium, Austria and the UK with the acquisition of service contracts from smaller well-established businesses for integration into the group's existing subsidiaries. In addition, with the acquisition of Linde Brandmateriel Aps the group has expanded its business into Denmark," noted Chair Jacques Gaston Murray.
London Security said it had seen an "improved performance" from its Services business in Europe - pushing total revenue higher. The company also credited the "continued improvement" of its newer service operations - such as emergency lights and passive fire protection - for the increase in total profit and revenue.
Foreign exchange movements added GBP1.0 million to revenue and GBP200,000 to operating profit.
The company's administrative expenses increased 8.1% to GBP32.2 million from GBP29.8 million.
London Security declared a final dividend of 40.0 pence, flat on the year before, resulting in a total dividend of 80.0p, also flat.
Murray added: "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."
Shares in London Security were untraded Thursday but last closed at 2,040.00 pence each.
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