London Security profits fall
FIRE protection business London Security has seen half year turnover increase 0.4% to £47.8m while operating profit fell 8.2% to £9m.
The Elland-headquartered company, which trades under the brand names Ansul, Nu-Swift, Total, Premier and Master, also saw half year pre-tax profits fall to £8.8m for the half year to the end of June 2013, from £15.5m the previous half year.
It said the fall in profits were due legislative changes causing a boost to extinguisher sales in 2011 and 2012, which has now levelled out, adding that while lost customers had been replaced, it had generally been at lower margins.
The pre-tax profit in 2012 included £5.9m from the sale of land in Elland. Adjusting for this item, profit before income tax would have been £9.6m, the company said.
Meanwhile, euro exchange rate fluctuations have resulted in an increased in like for like revenue by £1m and operating profit by £0.2m.
The group acquired five businesses over the six months to the end of June and made a further three acquisitions in July, the integration of which have been successful, it said.
Chairman Jacques Gaston Murray said: “Economic growth in the group’s market has been depressed. Despite signs of a slow recovery, our market reflects reduced customer confidence and consequent reluctance to invest in our products.
“However, as a leading provider in this market with a well-diversified and loyal customer base, the board believes we are in a strong position to face further challenges in 2013.”
