Final Results

London Security PLC
30 April 2004




The Group has delivered creditable results in 2003 in difficult market
conditions.



Financial highlights are:



•      Turnover increased by 12% to £53.8 million

•      Operating profit increased by 18% to £10.9 million

•      Earnings before interest, tax, depreciation and amortisation ('EBITDA')
       increased by 13% to £15.5 million

•      Net borrowings reduced from £4.5 million to a positive net cash position
       of £1.2 million

•      Dividend increased by 86% to 13p per share



Trading Review



The financial highlights show the progress made in the year.  This is very
encouraging as it follows the tremendous growth reported in 2001 and 2002.



UK turnover has increased in 2003 due to the acquisition in November 2002 of
Asco Extinguishers Company Limited and in May 2002 of CFP Cavelle Limited.
Organic growth continued in Belgium and Holland and was achieved whilst
maintaining profit margins.



It is however worth noting that these results were affected beneficially by the
strengthening of the Euro against the pound, with 67% of our revenues being
denominated in Euro.





Future Prospects



The outlook for 2004 is reasonable.



In 2003 we became one of the first fire service companies to achieve the
environmental standard ISO 14001.  Building on this concern for the environment,
we launched our new ECO foam fire extinguishers.  This is an environmentally
friendly range of extinguishers, which achieve the highest performance ratings
of any foam extinguisher without causing any harm to the environment.  Sales
expectations for this product are high.



Fulfilling all customer needs and expectations, communicating clearly and
effectively with customers and providing a 'one stop shop' for fire protection
are our strengths from which we intend to grow the business.



Work on developing new improved ranges of extinguishers continues and these are
timetabled to be launched in Autumn 2004.



Acquisitions



In addition to organic growth, it remains a principal aim of the Company to grow
through acquisition.  Acquisitions are being sought throughout Europe and the
Group is prepared to invest at the upper end of the price spectrum where an
adequate return is envisaged.



In 2003, we have been successful in this objective with the acquisition of
Premier Fire in the United Kingdom and various smaller purchases of contracts to
provide fire extinguisher maintenance throughout Europe.



Management and Staff



2003 was a year in which the staff performed well and, on your behalf, I would
like to express thanks and appreciation for their contribution.



Dividend



A final dividend of 10.0p (2002: 5.0p) per share is proposed, payable on 25 June
2004 to shareholders on the register on 28 May 2004.  An interim dividend of
3.0p per share (2002: 2.0p) was paid in November 2003 making a total dividend
for the year of 13.0p (2002: 7.0p) per share.





Annual General Meeting



The Annual General Meeting will be held at 10 Bruton Street, 5th Floor, London
on 10 June 2004 at 11.00 am.





J.G. Murray

Chairman


Consolidated Profit and Loss Account

For the year ended 31 December 2003
                                                                          Year ended        Year ended
                                                                         31 December       31 December
                                                                                2003              2002
                                                                               £'000             £'000

Turnover                                                                      53,760            48,078

Cost of sales                                                                (8,201)           (7,288)

Gross profit                                                                  45,559            40,790

Distribution costs                                                          (20,546)          (18,079)

Administrative expenses                                                     (14,086)          (13,433)

Operating profit                                                              10,927             9,278

 EBITDA**                                                                     15,510            13,694

 Depreciation                                                                (1,838)           (1,735)

 Amortisation of goodwill                                                    (2,745)           (2,681)

 Operating profit                                                             10,927             9,278

Income from fixed asset investments                                              117               111

Net interest payable and similar charges                                       (665)             (946)

Profit on ordinary activities before taxation                                 10,379             8,443

Taxation                                                                     (4,587)           (3,840)

Profit on ordinary activities after taxation                                   5,792             4,603

Dividends                                                                    (1,882)           (1,014)

Retained profit                                                                3,910             3,589

Basic and diluted earnings per ordinary share                                  40.0p             31.8p

Adjusted earnings per ordinary share                                           59.0p             50.3p

Dividend per ordinary share                                                    13.0p              7.0p


All of the above results arose from continuing operations. Turnover, operating
profit and cash flow attributable to acquisitions have not been separately
disclosed on the face of the profit and loss account and the cash flow statement
on the grounds of materiality.


**Earnings Before Interest, Taxation, Depreciation and Amortisation



                                                                                     2003          2002
                                                                                    £'000         £'000
Fixed assets

Intangible assets                                                                  45,082        47,128

Tangible assets                                                                     7,791         7,363

Investments                                                                            70            70

                                                                                   52,943        54,561
Current assets

Stocks                                                                              3,643         3,425

Debtors                                                                            11,666         9,740

Cash at bank and in hand                                                           13,486        10,303

                                                                                   28,795        23,468

Creditors: amounts falling due within one year

Finance debt                                                                      (4,161)       (3,503)

Other creditors                                                                  (15,232)      (13,383)

                                                                                 (19,393)      (16,886)

Net current assets                                                                  9,402         6,582

Total assets less current liabilities                                              62,345        61,143

Creditors: amounts falling due after more than one year

Finance debt                                                                      (8,100)      (11,255)

Provisions for liabilities and charges                                            (1,841)       (1,907)

Net assets                                                                         52,404        47,981

Capital and reserves

Called up share capital                                                             1,447         1,449

Share premium                                                                      27,476        27,476

Capital redemption reserve                                                            117           115

Merger reserve                                                                      2,033         2,033

Profit and loss account                                                            21,331        16,908

Total equity shareholders' funds                                                   52,404        47,981


CONSOLIDATED CASH FLOW STATEMENT                                            
For the year ended 31 December 2003

                                                                            Year ended       Year ended
                                                                            31 December     31 December
                                                                                     2003          2002
                                                                                    £'000         £'000

Net cash inflow from operating activities                                          14,295        14,980
Return on investments and servicing of finance

Interest received                                                                     231           204

Interest paid                                                                       (694)         (889)

Dividends received                                                                    117           111

Net cash outflow from return on investments                                         (346)         (574)
and servicing of finance

Taxation
Corporation tax paid                                                              (3,696)       (4,034)

Capital expenditure
Payments to acquire intangible fixed assets                                          (79)          (52)

Payments to acquire tangible fixed assets                                         (2,239)       (3,343)

Receipts from sales of tangible fixed assets                                          237           845

Net cash outflow for capital expenditure                                          (2,081)       (2,550)
Acquisitions and disposals

Payments to acquire subsidiary undertakings                                         (359)       (2,714)

Payment of deferred consideration on prior year acquisitions                        (679)             -

(Overdraft)/cash acquired with subsidiary undertakings                              (112)           331

Net cash outflow for acquisitions                                                 (1,150)       (2,383)

Equity dividends paid to shareholders                                             (1,159)         (870)

Net cash inflow before use of financing                                             5,863         4,569

Financing
Purchase of own shares                                                              (171)             -

New long-term loans                                                                   600         1,350

Repayment of long-term loans                                                      (3,109)       (2,908)

Net cash outflow from financing                                                   (2,680)       (1,558)

Increase in cash in the year                                                        3,183         3,011


1    Earnings per Share


The calculation of basic earnings per ordinary share (EPS) is based on the
profit on ordinary activities after taxation of £5,792,000 (2002: £4,603,000)
and on 14,481,066 (2002: 14,487,316) ordinary shares, being the weighted average
number of ordinary shares in issue during the year.



For diluted earnings per ordinary share, the weighted average number of shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares.  The revised weighted average number of shares is 14,488,332 (2002:
14,487,316).  After taking into account the effect of dilutive securities, the
basic EPS and adjusted EPS figures are unaltered.



The calculation of adjusted earnings per ordinary share is based on 14,481,066
(2002: 14,487,316) ordinary shares in issue prior to 31 December 2003 and on
adjusted earnings which comprise:


                                                                        2003              2002
                                                                   £'000    pence      £'000  pence
Profit on ordinary activities after taxation                       5,792     40.0      4,603   31.8
Eliminate effect of:
  Amortisation of goodwill                                         2,745     19.0      2,681   18.5
Adjusted profit on ordinary activities after taxation              8,537     59.0      7,284   50.3

Adjusted earnings per share figures are given in order that shareholders may
understand the importance of goodwill amortisation on the results for the year.


2


This preliminary announcement does not constitute statutory accounts within the
meaning of section 240 of the Companies Act 1985. This announcement has been
agreed with the company's auditors for release.


The results for the year ended 31 December 2003 have been abridged from the full
accounts of the Group for that year which received an unqualified auditors'
report and which have not yet been delivered to the Registrar of Companies.  The
results for the year ended 31 December 2002 have been extracted from the Group's
statutory accounts which received an unqualified auditors' report and have been
filed with the Registrar of Companies.


3


The preceding statements have been prepared in accordance with applicable
accounting standards on a basis which is consistent with that applied in
previous periods.



Enquiries:



London Security plc
Richard Pollard, Company Secretary               01422 372852


                      This information is provided by RNS
            The company news service from the London Stock Exchange