Revenue and profit up at London Security as acquisitive streak continues

FIRE protection firm London Security has reported an increase in revenue and profit while it said growing through acquisition remains a “principal aim” of the group.

In its half year report, the Elland-based business saw group revenue rise by £6.1m (12.2%) to £56.3m.

However, it said the results are impacted by fluctuating exchange rates, which had a positive effect of £2.5m on reported turnover. If the 2016 results had been translated at 2015 rates, revenue would have been £53.7m instead of £56.3m, an adjusted increase of 7%.

The company said the revenue increase can be attributed to acquisition activity (£1.1m) and improved organisation of work which results in services being performed earlier in the year.

Operating profit increased by £1.4m (17.7%) to £9.3m. Adjusting for the change in exchange rates, operating profit would have been £8.8m instead of £9.3m, an adjusted increase of 11.4%.  

In the six months to the end of June, the group acquired a total of seven “well established” businesses at a cost of £1.7m. The company said the integration of these businesses into the group has been successful and results are in line with expectations.

London Security said it remains a “principal aim” of the group 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 by the board,” the company said.

Looking ahead to the rest of the year, London Security 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. The board is optimistic for further success in 2016.”

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