Acquisitive fire protection firm eyes further opportunities

Fire protection firm London Security has confirmed that further acquisitions are firmly on the agenda as it said opportunities are being sought throughout Europe.

In the six months to June, the Elland-based group acquired six well established businesses at a cost of £1.1m as it said it remains a “principal aim” to grow through acquisition.

London Security said acquisition opportunities are being sought throughout Europe and the group will invest at the “upper end” of the price spectrum where an adequate return is envisaged.

Updating the markets on it performance for the first half of the year, the group reported a revenue increase of £4.3m to £60.6m. However, it said the results are impacted by fluctuating exchange rates and if the 2017 results had been translated at 2016 rates, revenue would have been £56.1m.

“The revenue movement can be attributed to business acquisitions, fluctuations in service patterns and increased competition in our core market,” London Security said.

Operating profit increased 2.2% to £9.5m and again, adjusting for the change in exchange rates, operating profit would have been £8.7m.

Operating profit as a percentage of turnover fell from 16.5% to 15.7% as costs including amortisation of service contracts and brands increased.

The company said: “The fire security market is experiencing increased competition and downward pressure on prices. Our strategy is to continue to concentrate on the highest levels of customer service to mitigate this.

“We do not expect the economic environment to get any easier in 2017. Nonetheless your group remains in a strong position and will continue to focus on meeting the needs of our customers and our shareholders.”