30th Sep 2013 13:21
LONDON (Alliance News) - London Security PLC Monday reported a fall in pretax profit for the first half, despite making a number of acquisitions.
The company, which makes and sells fire-protection equipment, posted pretax profit of GBP8.8 million for the period ended 30 June, down from GBP15.5 million a year earlier, which it attributed to two main causes.
London Security said 2011 and 2012 benefited from legislative changes concerning perfluorooctane sulfonate (PFOS) foam extinguishers which resulted in higher-than-normal sales in those periods. The effect of this legislation died down in the second quarter of 2012.
London Security also said that although it had been successful in replacing lost customers with new customers, this had been at lower margins.
Despite the fall in profit, revenue crept up to GBP47.8 million, from GBP47.6 million in 2012, due to the movement in the Sterling-to-Euro average exchange rate.
The group's borrowings were refinanced in May, and it now has a new GBP20 million facility until 2018. This will be repaid at the rate of GBP2 million per year, over five years, with a GBP10 million repayment at maturity.
London Security said that it acquired five "well established" businesses, which it didn't name, in the UK and Austria at a cost of GBP3.3 million. After June 30, the company made three further acquisitions in the UK at a cost of GBP1.7 million.
"The integration of these businesses into the group has, so far, been successful and results are in line with expectations," London Security said.
The firm said it now plans to grow the business through acquisitions, which are being sought throughout Europe.
London Security shares were trading at 1,820.00 pence Monday afternoon, up 47.50 pence or 2.7%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Lon.sec